Question 1

A partnership cannot use salary allowances or interest allowances if it uses the stated ratio method to allocate income and losses to the partners.

Accepted Answer

A) True 
 B)False

Question 2

The life of a partnership is ____________________ in duration.

Accepted Answer

The answer of The life of a partnership is ____________________...

Question 3

The partnership shows the following capital balances immediately prior to the liquidation of the partnership: Liu,$252,000,Wang,$114,000,and Zhang,$114,000.The partners share income and loss equally.The partnership's noncash assets consisted of a tract of land,which was originally purchased for $50,000.As part of its liquidation,the partnership sold its land for $71,000.How would the partnership record the allocation of the gain from the sale of the land to the partners?

Accepted Answer

A) Debit Cash for $71,000,credit Land for $50,000,and credit Gain from Sale for $21,000. 
B) Debit Cash for $71,000,credit Land for $50,000,and credit Gain from Liquidation for $21,000. 
C) Debit Cash for $71,000,credit Land for $50,000,credit Liu,Capital for $7,000,credit Wang,Capital for $7,000,and credit Zhang,Capital for $7,000. 
D) Debit Gain from Liquidation for $21,000,credit Liu,Capital for $7,000,credit Wang,Capital for $7,000,and credit Zhang,Capital for $7,000. 
E) Debit Cash for $71,000 and credit Land for $71,000. 
A) Debit Cash for $71,000,credit Land for $50,000,and credit Gain from Sale for $21,000. 
B) Debit Cash for $71,000,credit Land for $50,000,and credit Gain from Liquidation for $21,000. 
C) Debit Cash for $71,000,credit Land for $50,000,credit Liu,Capital for $7,000,credit Wang,Capital for $7,000,and credit Zhang,Capital for $7,000. 
D) Debit Gain from Liquidation for $21,000,credit Liu,Capital for $7,000,credit Wang,Capital for $7,000,and credit Zhang,Capital for $7,000. 
E) Debit Cash for $71,000 and credit Land for $71,000.

Question 4

McCartney,Harris,and Hussin are dissolving their partnership.Their partnership agreement allocates each partner 1/3 of all income and losses.The current period's ending capital account balances are McCartney,$13,000; Harris,$13,000; and Hussin,$(2,000).After all assets are sold and liabilities are paid,there is $24,000 in cash to be distributed.Hussin is unable to pay the deficiency.The journal entry to record the distribution should be:

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 5

Paco and Kate invested $99,000 and $126,000,respectively,in a partnership they began one year ago.Assuming the partnership earned $120,000 during the current year,compute the share of the net income each partner should receive under each of these independent assumptions.

Accepted Answer

Part 1: @#IMG-DLM&_TB6947_00_T

Question 6

A partnership that has at least two classes of partners,general and limited,that allows the limited partners to have no personal liability beyond the amounts they invest in the partnership,and in which the limited partners have no active role except as specified in the partnership agreement is a ________________________ partnership.

Accepted Answer

The answer of A partnership that has at least two...

Question 7

What are the ways that a new partner can be admitted to an existing partnership? Explain how to account for the admission of the new partner under each of these circumstances.

Accepted Answer

A new partner may purchase a partnership

Question 8

If a partner withdraws from a partnership and the recorded value of his or her equity is overstated,then a bonus goes to _____________________; if the recorded value of the withdrawing partner's equity is understated,then a bonus goes to _______________________.

Accepted Answer

the remain

Question 9

When the current value of a partnership is greater than the recorded amounts of equity,the current partners usually require any new partner to pay a bonus for the privilege of joining.

Accepted Answer

A) True 
 B)False

Question 10

Arthur,Barnett and Cummings form a partnership.Arthur contributes $250,000 cash and Barnett contributes $230,000 in cash.Cummings contributes equipment worth $255,000.Prepare the single journal entry to record the formation of this partnership.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 11

Jimmy Hayes is a partner in Sports Promoters.His beginning partnership capital balance for the current year $65,000 and his ending partnership capital balance for the current year is $62,000.His share of this year's partnership income was $5,250.What were his withdrawals for the period?

Accepted Answer

A) $8,250 
B) $3,000 
C) $2,250 
D) $0 
E) $5,250 
A) $8,250 
B) $3,000 
C) $2,250 
D) $0 
E) $5,250

Question 12

A partnership agreement:

Accepted Answer

A) Is not binding unless it is in writing. 
B) Is the same as a limited liability partnership. 
C) Is binding even if it is not in writing. 
D) Does not generally address the issue of the rights and duties of the partners. 
E) Is also called the articles of incorporation. 
A) Is not binding unless it is in writing. 
B) Is the same as a limited liability partnership. 
C) Is binding even if it is not in writing. 
D) Does not generally address the issue of the rights and duties of the partners. 
E) Is also called the articles of incorporation.

Question 13

The capital balances of Martin,Greene,and Patron,who share income in the ratio of 6:3:1,are as follows: Martin $240,000,Greene $120,000,and Patron $40,000.Elan invests $200,000 cash in the partnership for a one-third interest.How would the partnership record the admission of Elan?

Accepted Answer

A) Debit Cash for $200,000,credit Martin,Capital for $120,000,credit Greene,Capital for $60,000,credit Patron,Capital for $20,000. 
B) Debit Cash for $133,333 and credit Elan,Capital for $133,333. 
C) Debit Elan,Capital for $133,333 and credit Cash for $133,333. 
D) Debit Elan,Capital for $200,000 and credit Cash for $200,000. 
E) Debit Cash for $200,000 and credit Elan,Capital for $200,000. 
A) Debit Cash for $200,000,credit Martin,Capital for $120,000,credit Greene,Capital for $60,000,credit Patron,Capital for $20,000. 
B) Debit Cash for $133,333 and credit Elan,Capital for $133,333. 
C) Debit Elan,Capital for $133,333 and credit Cash for $133,333. 
D) Debit Elan,Capital for $200,000 and credit Cash for $200,000. 
E) Debit Cash for $200,000 and credit Elan,Capital for $200,000.

Question 14

Rodriguez,Sate,and Melton are dissolving their partnership.Their partnership agreement allocates income and losses equally among the partners.The current period's ending capital account balances are Rodriguez,$32,000; Sate,$28,000; and Melton,$(4,000).After all the assets are sold and liabilities are paid,but before any contributions are considered to cover any deficiencies,there is $56,000 in cash to be distributed.Melton pays $2,000 to cover the deficiency in her account.The final distribution of cash would be as follows:

Accepted Answer

A) Rodriquez $30,000 and Sate $26,000. 
B) Rodriquez $32,000 and Sate $26,000. 
C) Rodriquez $30,000 and Sate $28,000. 
D) Rodriquez $30,000 and Sate $27,000. 
E) Rodriquez $31,000 and Sate $27,000. 
A) Rodriquez $30,000 and Sate $26,000. 
B) Rodriquez $32,000 and Sate $26,000. 
C) Rodriquez $30,000 and Sate $28,000. 
D) Rodriquez $30,000 and Sate $27,000. 
E) Rodriquez $31,000 and Sate $27,000.

Question 15

Partner return on equity is calculated as ______________________________.

Accepted Answer

partner net income d

Question 16

The partnership shows the following capital balances at the date of Mather's withdrawal: Lennon,$168,000,Mather,$76,000,and Starr,$76,000.The partners (Lennon,Mather,and Starr) share income and loss equally.Mather withdraws and is paid $60,000 of cash.How would the partnership record the withdrawal of Mather?

Accepted Answer

A) Debit Mather,Capital for $76,000 and credit Cash for $76,000. 
B) Debit Cash for $76,000 and credit Mather,Capital for $76,000. 
C) Debit Mather,Capital for $76,000,credit Lennon,Capital for $8,000,credit Starr,Capital for $8,000,and credit Cash for $60,000. 
D) Debit Cash for $16,000,credit Starr,Capital for $8,000,and credit Lennon,Capital for $8,000. 
E) Debit Starr,Capital for $8,000,debit credit Lennon,Capital for $8,000,and credit Cash for $16,000. 
A) Debit Mather,Capital for $76,000 and credit Cash for $76,000. 
B) Debit Cash for $76,000 and credit Mather,Capital for $76,000. 
C) Debit Mather,Capital for $76,000,credit Lennon,Capital for $8,000,credit Starr,Capital for $8,000,and credit Cash for $60,000. 
D) Debit Cash for $16,000,credit Starr,Capital for $8,000,and credit Lennon,Capital for $8,000. 
E) Debit Starr,Capital for $8,000,debit credit Lennon,Capital for $8,000,and credit Cash for $16,000.

Question 17

When a partner invests in a partnership,his/her capital account is __________ for the invested amount.

Accepted Answer

The answer of When a partner invests in a partnership,his/her...

Question 18

During 2013,Schmidt invested $75,000 and Baldwin invested $90,000 in a partnership.They agreed that Baldwin would get a salary allowance of $30,000 and they would share any remaining income or loss equally.During 2013 the partnership earned net income of $300,000 and they each withdrew $12,000 from the partnership.Which of the following statements is correct?

Accepted Answer

A) Schmidt Capital at the end of 2013 is $213,000. 
B) Schmidt Capital at the end of 2013 is $210,000. 
C) Baldwin Capital at the end of 2013 is $243,000. 
D) Baldwin Capital at the end of 2013 is $255,000. 
E) Total Capital at the end of 2013 has increased by $300,000. 
A) Schmidt Capital at the end of 2013 is $213,000. 
B) Schmidt Capital at the end of 2013 is $210,000. 
C) Baldwin Capital at the end of 2013 is $243,000. 
D) Baldwin Capital at the end of 2013 is $255,000. 
E) Total Capital at the end of 2013 has increased by $300,000.

Question 19

Active Sports LP is organized as a limited partnership consisting of two partners: Basketball Products LP and Hockey Products LP.Each of the partners sells sporting equipment for their respective sports.Compute the partner return on equity for each limited partnership and for the total limited partnership for the year ended September 30,2013,using the following data:

Accepted Answer

Partner return on equity = Partner net i

Question 20

Conley and Liu allow Lepley to purchase a 25% interest in their partnership for $50,000 cash.Conley and Liu both have capital balances of $55,000 each and have agreed to share income and loss equally.Prepare the journal entry to record the admission of Lepley to the partnership.

Accepted Answer

@#IMG-DLM&_TB6947_00_TB6947_00

A partnership cannot use salary allowances or interest allowances if it uses the stated ratio method to allocate income and losses to the partners.

The life of a partnership is ____________________ in duration.

Paco and Kate invested $99,000 and $126,000,respectively,in a partnership they began one year ago.Assuming the partnership earned $120,000 during the current year,compute the share of the net income each partner should receive under each of these independent assumptions.

What are the ways that a new partner can be admitted to an existing partnership? Explain how to account for the admission of the new partner under each of these circumstances.

If a partner withdraws from a partnership and the recorded value of his or her equity is overstated,then a bonus goes to _; if the recorded value of the withdrawing partner's equity is understated,then a bonus goes to ___.

When the current value of a partnership is greater than the recorded amounts of equity,the current partners usually require any new partner to pay a bonus for the privilege of joining.

Arthur,Barnett and Cummings form a partnership.Arthur contributes $250,000 cash and Barnett contributes $230,000 in cash.Cummings contributes equipment worth $255,000.Prepare the single journal entry to record the formation of this partnership.

Jimmy Hayes is a partner in Sports Promoters.His beginning partnership capital balance for the current year $65,000 and his ending partnership capital balance for the current year is $62,000.His share of this year's partnership income was $5,250.What were his withdrawals for the period?

A partnership agreement:

The capital balances of Martin,Greene,and Patron,who share income in the ratio of 6:3:1,are as follows: Martin $240,000,Greene $120,000,and Patron $40,000.Elan invests $200,000 cash in the partnership for a one-third interest.How would the partnership record the admission of Elan?

Partner return on equity is calculated as ______________________________.

When a partner invests in a partnership,his/her capital account is __________ for the invested amount.

Conley and Liu allow Lepley to purchase a 25% interest in their partnership for $50,000 cash.Conley and Liu both have capital balances of $55,000 each and have agreed to share income and loss equally.Prepare the journal entry to record the admission of Lepley to the partnership.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting With Special Journals

Filters

Exam 16: Accounting for Partnerships

A partnership cannot use salary allowances or interest allowances if it uses the stated ratio method to allocate income and losses to the partners.

The life of a partnership is ____________________ in duration.

Paco and Kate invested $99,000 and $126,000,respectively,in a partnership they began one year ago.Assuming the partnership earned $120,000 during the current year,compute the share of the net income each partner should receive under each of these independent assumptions.

What are the ways that a new partner can be admitted to an existing partnership? Explain how to account for the admission of the new partner under each of these circumstances.

If a partner withdraws from a partnership and the recorded value of his or her equity is overstated,then a bonus goes to _____________________; if the recorded value of the withdrawing partner's equity is understated,then a bonus goes to _______________________.

When the current value of a partnership is greater than the recorded amounts of equity,the current partners usually require any new partner to pay a bonus for the privilege of joining.

Arthur,Barnett and Cummings form a partnership.Arthur contributes $250,000 cash and Barnett contributes $230,000 in cash.Cummings contributes equipment worth $255,000.Prepare the single journal entry to record the formation of this partnership.

Jimmy Hayes is a partner in Sports Promoters.His beginning partnership capital balance for the current year $65,000 and his ending partnership capital balance for the current year is $62,000.His share of this year's partnership income was $5,250.What were his withdrawals for the period?

A partnership agreement:

The capital balances of Martin,Greene,and Patron,who share income in the ratio of 6:3:1,are as follows: Martin $240,000,Greene $120,000,and Patron $40,000.Elan invests $200,000 cash in the partnership for a one-third interest.How would the partnership record the admission of Elan?

Partner return on equity is calculated as ______________________________.

When a partner invests in a partnership,his/her capital account is __________ for the invested amount.

Conley and Liu allow Lepley to purchase a 25% interest in their partnership for $50,000 cash.Conley and Liu both have capital balances of $55,000 each and have agreed to share income and loss equally.Prepare the journal entry to record the admission of Lepley to the partnership.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting With Special Journals

Filters

If a partner withdraws from a partnership and the recorded value of his or her equity is overstated,then a bonus goes to _; if the recorded value of the withdrawing partner's equity is understated,then a bonus goes to ___.