Question 1

When a partner leaves a partnership,the present partnership ends.

Accepted Answer

A) True 
 B)False

Question 2

McCartney,Harris,and Hussin are dissolving their partnership.Their partnership agreement allocates income and losses equally among the partners.The current period's ending capital account balances are McCartney,$15,000,Harris,$15,000,Hussin,$(2,000).After all the assets are sold and liabilities are paid,but before any contributions to cover any deficiencies,there is $28,000 in cash to be distributed.Hussin pays $2,000 to cover the deficiency in his account.The general journal entry to record the final distribution would be:

Accepted Answer

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

Question 3

In the absence of a partnership agreement,the law says that income of a partnership will be shared equally by the partners.

Accepted Answer

A) True 
 B)False

Question 4

Khalid,Dina,and James are partners with beginning-year capital balances of $400,000,$320,000,and $160,000,respectively.The partners agreed to share income and loss as follows: salary of $30,000 to Khalid; $50,000 to Dina; and $55,000 to James and an interest allowance of 10% on beginning-of-year capital balances.Any remaining balance is to be divided equally.If partnership net income for the year is $190,000,determine each partner's share and make the appropriate journal entry to close the Income Summary to the capital accounts.

Accepted Answer

@#IMG-DLM&_TB6947_00_TB6947_00

Question 5

Armstrong plans to leave the FAP Partnership.The recorded balance in her capital account is $48,000.The remaining partners,Peters and Floyd,agree to pay Armstrong $58,000 cash.The partners have agreed to share income and loss equally.Prepare the journal entry to record the transaction.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 6

The BlueFin Partnership agrees to dissolve.The cash balance after selling all assets and paying all liabilities is $60,000.The final capital account balances are: Smith,$35,000; Nagy,$29,000; and Russ, ($4,000).Russ is unable to pay the capital deficiency.Prepare the journal entries to record the transactions required to dissolve this partnership.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 7

S.Reising contributed $48,000 in cash plus equipment valued at $73,000 to the Reising Construction Partnership.The equipment had a book value of $65,000.The journal entry to record the transaction for the partnership would include a:

Accepted Answer

A) Debit to Equipment for $73,000. 
B) Debit to Equipment for $65,000. 
C) Credit to S.Reising,Capital for $113,000. 
D) Credit to Common Stock for $121,000 
E) Credit to the Gain on Asset for $8,000. 
A) Debit to Equipment for $73,000. 
B) Debit to Equipment for $65,000. 
C) Credit to S.Reising,Capital for $113,000. 
D) Credit to Common Stock for $121,000 
E) Credit to the Gain on Asset for $8,000.

Question 8

Benson is a partner in B&D Company.Benson's share of the partnership income is $18,600 and her average partnership equity is $155,000.Her partner return on equity equals 8.33.

Accepted Answer

A) True 
 B)False

Question 9

In a limited partnership the general partner has unlimited liability.

Accepted Answer

A) True 
 B)False

Question 10

A partnership designed to protect innocent partners from malpractice or negligence claims resulting from the acts of other partners is a ____________________________ partnership.

Accepted Answer

The answer of A partnership designed to protect innocent partners...

Question 11

Marquis and Bose agree to accept Sherman into their partnership.Sherman will contribute $25,000 in cash.Prepare the journal entry to record this transaction.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 12

Durango and Verde formed a partnership with capital contributions of $150,000 and $190,000,respectively.Their partnership agreement called for Durango to receive a $50,000 annual salary allowance.They also agreed to allow each partner a share of income equal to 10% of their initial capital investments.The remaining income or loss is to be divided equally.If the net income for the current year is $120,000,what are Durango's and Verde's respective shares?

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 13

What are the ways a partner can withdraw from a partnership? Explain how to account for the withdrawal of a current partner from a partnership.

Accepted Answer

A partner may sell his or her interest i

Question 14

A relatively new form of business organization that protects partners with limited liability,allows limited partners to assume an active management role,and is taxed as a partnership is a ______________________________.

Accepted Answer

limited li

Question 15

Which of the following best lists the disadvantages of a partnership:

Accepted Answer

A) Unlimited life and mutual agency. 
B) Mutual agency and limited liability. 
C) Unlimited liability and unlimited life. 
D) Limited Life and limited liability. 
E) Limited life,mutual agency,and unlimited liability are all disadvantages of a partnership 
A) Unlimited life and mutual agency. 
B) Mutual agency and limited liability. 
C) Unlimited liability and unlimited life. 
D) Limited Life and limited liability. 
E) Limited life,mutual agency,and unlimited liability are all disadvantages of a partnership

Question 16

Partners can invest both assets and liabilities into a partnership.

Accepted Answer

A) True 
 B)False

Question 17

If partners agree on how to share income,but say nothing about losses,then losses are shared ___________________.

Accepted Answer

in the sam

Question 18

Partners' withdrawals are credited to their separate withdrawals accounts.

Accepted Answer

A) True 
 B)False

Question 19

The partnership shows the following capital balances immediately prior to the liquidation of the partnership: Kapoor,$252,000,Patel,$114,000,and Punjab,$114,000.The partners share income and loss equally.The partnership's noncash assets consist of a tract of land,which was originally purchased for $100,000.As part of its liquidation,the partnership sells its land for $112,000.How would the partnership record the sale of the land?

Accepted Answer

A) Debit Cash for $112,000,credit Land for $100,000,and credit Gain from Sale for $12,000. 
B) Debit Cash for $112,000,credit Land for $100,000,and credit Gain from Liquidation for $12,000. 
C) Debit Cash for $112,000,credit Land for $100,000,credit Kapoor,Capital for $4,000,credit Patel,Capital for $4,000,and credit Punjab,Capital for $4,000. 
D) Debit Cash for $100,000 and credit Land for $100,000. 
E) Debit Cash for $112,000 and credit Land for $112,000. 
A) Debit Cash for $112,000,credit Land for $100,000,and credit Gain from Sale for $12,000. 
B) Debit Cash for $112,000,credit Land for $100,000,and credit Gain from Liquidation for $12,000. 
C) Debit Cash for $112,000,credit Land for $100,000,credit Kapoor,Capital for $4,000,credit Patel,Capital for $4,000,and credit Punjab,Capital for $4,000. 
D) Debit Cash for $100,000 and credit Land for $100,000. 
E) Debit Cash for $112,000 and credit Land for $112,000.

Question 20

Accounting procedures for all items are the same for both C corporations and S corporations in all aspects.

Accepted Answer

A) True 
 B)False

When a partner leaves a partnership,the present partnership ends.

In the absence of a partnership agreement,the law says that income of a partnership will be shared equally by the partners.

Armstrong plans to leave the FAP Partnership.The recorded balance in her capital account is $48,000.The remaining partners,Peters and Floyd,agree to pay Armstrong $58,000 cash.The partners have agreed to share income and loss equally.Prepare the journal entry to record the transaction.

S.Reising contributed $48,000 in cash plus equipment valued at $73,000 to the Reising Construction Partnership.The equipment had a book value of $65,000.The journal entry to record the transaction for the partnership would include a:

Benson is a partner in B&D Company.Benson's share of the partnership income is $18,600 and her average partnership equity is $155,000.Her partner return on equity equals 8.33.

In a limited partnership the general partner has unlimited liability.

A partnership designed to protect innocent partners from malpractice or negligence claims resulting from the acts of other partners is a ____________________________ partnership.

Marquis and Bose agree to accept Sherman into their partnership.Sherman will contribute $25,000 in cash.Prepare the journal entry to record this transaction.

What are the ways a partner can withdraw from a partnership? Explain how to account for the withdrawal of a current partner from a partnership.

A relatively new form of business organization that protects partners with limited liability,allows limited partners to assume an active management role,and is taxed as a partnership is a ______________________________.

Which of the following best lists the disadvantages of a partnership:

Partners can invest both assets and liabilities into a partnership.

If partners agree on how to share income,but say nothing about losses,then losses are shared ___________________.

Partners' withdrawals are credited to their separate withdrawals accounts.

Accounting procedures for all items are the same for both C corporations and S corporations in all aspects.

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

When a partner leaves a partnership,the present partnership ends.

In the absence of a partnership agreement,the law says that income of a partnership will be shared equally by the partners.

Armstrong plans to leave the FAP Partnership.The recorded balance in her capital account is $48,000.The remaining partners,Peters and Floyd,agree to pay Armstrong $58,000 cash.The partners have agreed to share income and loss equally.Prepare the journal entry to record the transaction.

S.Reising contributed $48,000 in cash plus equipment valued at $73,000 to the Reising Construction Partnership.The equipment had a book value of $65,000.The journal entry to record the transaction for the partnership would include a:

Benson is a partner in B&D Company.Benson's share of the partnership income is $18,600 and her average partnership equity is $155,000.Her partner return on equity equals 8.33.

In a limited partnership the general partner has unlimited liability.

A partnership designed to protect innocent partners from malpractice or negligence claims resulting from the acts of other partners is a ____________________________ partnership.

Marquis and Bose agree to accept Sherman into their partnership.Sherman will contribute $25,000 in cash.Prepare the journal entry to record this transaction.

What are the ways a partner can withdraw from a partnership? Explain how to account for the withdrawal of a current partner from a partnership.

A relatively new form of business organization that protects partners with limited liability,allows limited partners to assume an active management role,and is taxed as a partnership is a ______________________________.

Which of the following best lists the disadvantages of a partnership:

Partners can invest both assets and liabilities into a partnership.

If partners agree on how to share income,but say nothing about losses,then losses are shared ___________________.

Partners' withdrawals are credited to their separate withdrawals accounts.

Accounting procedures for all items are the same for both C corporations and S corporations in all aspects.

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