Multiple Questions Answers

1. The entry to record the issuance of an interest-bearing note credits Notes Payable for the note's
cash realizable value.
maturity value.
market value.
face value.

2. Which one of the following would not be considered an expense of a partnership in determining income for the period?
 Freight-out
Salary allowance to partners
Supplies used
Expired insurance

3. Finney is admitted to a partnership with a 25% capital interest by a cash investment of $90,000. If total capital of the partnership is $390,000 before admitting Finney, the bonus to Finney is
$30,000.
$15,000.
$60,000.
$45,000.

4. Mary Janane's capital statement reveals that her drawings during the year were $50,000.
She made an additional capital investment of $25,000 and her share of the net loss for
the year was $10,000. Her ending capital balance was $200,000. What was Mary Janane's beginning capital balance?
 $225,000.
$260,000.
$185,000.
$235,000.