20. How are the _personal_ and _capital_ accounts of partners distinguished? What is the purpose of each of these accounts? 21. When the books of a partnership are closed, into what accounts are the _revenue_ accounts closed? Into what accounts is the _profit_ and _loss_ account closed? 22. When the business of a partnership is sold, or liquidated, how are the net assets divided? 23. If any part of the assets, other than the goods in which the firm is trading, brings a price above cost, what journal entry is necessary? What entry if the price is below cost? 24. When partners invest unequal amounts in the business, what is the usual method of adjusting the inequality? 25. White, Black, and Brown who have been conducting business under a partnership agreement, decide to liquidate the business and dissolve the partnership. In the final settlement White agrees to accept the accounts receivable, which amount to $6,432.00, in part payment of the amount due him, provided 10% is first charged off to cover doubtful accounts. What journal entry is necessary? 26. H. W. Hackett has been conducting a grocery business. His books have been kept by double entry, and were last closed December 31st, 1908. At that time, his net worth was $2,698.50. April 30th, 1909, he sold to John Ransom a half interest in the business for $1,500.00. Ransom made a cash payment of $1,000.00, and gave his note for $500.00 payable on demand, with interest at 6%. The profits for the four months ending April 30th, 1909, (estimated from the books), were $325.00. This amount was to be allowed to Mr. Hackett and placed to his credit on the books. Make journal entries for the allowed profit and for the sale of the half interest. The books are not to be closed at the beginning of the new partnership. 27. Prepare in proper form a solution of the problem given in Art. 40, Page 72. 28. Prepare a complete solution of the problem given in Art. 42, Page 74. REVIEW QUESTIONS ON THE SUBJECT OF CORPORATION ACCOUNTS 1. Into what two general classes are corporations divided? Name and give examples of two classes of private corporations. 2. How are joint stock companies distinguished from corporations? In what ways are they like corporations? 3. How are corporations created? Name 5 common requirements of the certificate of incorporation or application for a corporate charter. 4. What is meant by a _stockholder_, and how may a person become a stockholder in a corporation? What is a _stock certificate_? 5. What is meant by the _capitalization of a corporation_? What is the difference in meaning of the terms _capital_ and _capital stock_, as these terms are usually understood? 6. Define the two principal classes of stock issued by corporations. Name and define two kinds of preferred stock. What is meant by the term _treasury stock_? _Watered stock?_