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Alf and Ben, Partners in Alf & Ben LLP Who

Question 27

Multiple Choice

Alf and Ben, partners in Alf & Ben LLP who share net income and losses equally, had capital account balances of $40,000 and $60,000, respectively, on September 25, 2006, on which date the following journal entry was prepared for the partnership:
Alf and Ben, partners in Alf & Ben LLP who share net income and losses equally, had capital account balances of $40,000 and $60,000, respectively, on September 25, 2006, on which date the following journal entry was prepared for the partnership:   The foregoing journal entry: A)  Is acceptable B)  Should be replaced by an entry allocating an $8,000 bonus equally to Alf and to Ben C)  Should be replaced by an entry allocating a $24,000 bonus equally to Alf and to Ben D)  Should not reflect either a bonus or goodwill The foregoing journal entry:


A) Is acceptable
B) Should be replaced by an entry allocating an $8,000 bonus equally to Alf and to Ben
C) Should be replaced by an entry allocating a $24,000 bonus equally to Alf and to Ben
D) Should not reflect either a bonus or goodwill

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