1) Adam, Bill, and Charlie are partners. The profit and loss sharing rule between them is 33:55:33, with Bill getting the largest share and Adam receiving the smallest. The partnership incurs a net loss of $21,000. While closing the Income Summary ________. (Round your answer to the nearest dollar.)

A.

Adam, Capital will be credited for $5,727

B.

Charlie, Capital will be debited for $5,727

C.

Adam, Capital will be debited for $5,727

D.

Income Summary will be credited for $5,727

2) The balance sheet of Ryan and Peter firm as on December 31, 2017, is given below.

Assets		Liabilities
Cash	$15,000	Accounts Payable	$15,000
Accounts Receivable	12,000	Other liabilities	25,000
Furniture	25,000	Partner's Equity
Equipment	34 comma 00034,000	Ryan, Capital	27 comma 00027,000
Other assets	8,000	Peter, Capital	27 comma 00027,000
Total assets	$ 94 comma 000$94,000	Total liabilities and partner's equity	$ 94 comma 000$94,000

Ryan and Peter share profits in the ratio 3:2. They have decided to liquidate the partnership with immediate effect. After completing all the liquidation procedures (assuming all assets and liabilities were liquidated at book value), the business is left with

$ 34 comma 000$34,000

cash. As a result, Ryan will receive ________. (Round your answer to the nearest dollar.)

A.

$ 17 comma 000$17,000

B.

$ 27 comma 000$27,000

C.

$ 20 comma 400$20,400

D.

$ 13 comma 600$13,600