Allison and Josh are partners in a business.Allison's capital is $60,000 and Josh's capital is $100,000.Profits for the year are $80,000.They agree to share profits and losses as follows: \[\begin{array} { | l | r | r | } \hline & { \text { Allison } } & { \text { Josh } } \\ \hline \text { Salaries } & \$ 20,000 & \$ 40,000 \\ \hline \text { Interest on capital } & 10 \% & 10 \% \\ \hline \text { Remaining profits and losses } & 3 / 5 & 2 / 5 \\ \hline \end{array}\] Allison's share of the profits before paying salaries and interest on capital is:

A) $48,000. B) $22,000. C) $28,000. D) $28,400. A) $48,000. B) $22,000. C) $28,000. D) $28,400.

The partnership of Brandon and Ryan is being liquidated.All gains and losses are shared in a 3:1 ratio,respectively.Before liquidation,their balance sheet balances are as follows: \[\begin{array} { l r } \text { Cash } & \$ 10,000 \\ \text { Other Assets } & 7,000 \\ \text { Liabilities } & 3,000 \\ \text { Brandon, Capital } & 7,000 \\ \text { Ryan, Capital } & 7,000 \end{array}\] a)If the Other Assets are sold for $10,000,how much capital will each partner receive have before paying liabilities and distributing the remaining assets? b)If the Other Assets are sold for $7,000,how much capital will each partner have before paying liabilities and distributing remaining assets?

The answer of The partnership of Brandon and Ryan is...

Exam 17: Partnership

Allison and Josh are partners in a business.Allison's capital is $60,000 and Josh's capital is $100,000.Profits for the year are $80,000.They agree to share profits and losses as follows: Allison Josh Salaries \ 20,000 \ 40,000 Interest on capital 10\% 10\% Remaining profits and losses 3/5 2/5 Allison's share of the profits before paying salaries and interest on capital is:

(Multiple Choice)

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Question 41

Tim and Bev are partners who share profits and losses in the ratio of 6:4 for Tim and Bev,respectively.Their capital balances are $45,000 and $25,000,respectively.If Jenny is admitted to the partnership for $25,000 for a one-fourth interest,her capital balance will be:

(Multiple Choice)

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Question 42

Allan and Rick are partners who share profits and losses in the ratio of 3:2 for Allan and Rick,respectively.They have capital balances of $35,000 and $40,000,respectively.If Tammy invests $30,000 for one-third interest,Tammy's capital balance will be:

(Multiple Choice)

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Question 43

When two proprietors decide to combine their businesses and form a partnership,GAAP usually requires that noncash assets be taken over at their:

(Multiple Choice)

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Question 44

Prepare the journal entry to record the partners' investment in the company. Todd and Dillon combine their two businesses and enter into a partnership.Todd invests $10,000 cash and equipment on his books at $8,000 with accumulated depreciation of $3,000.The fair market value of the equipment is $7,000.Dillon is investing $6,000 cash and $500 accounts payable.

(Essay)

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Question 45

A new partner was admitted but the assets weren't revalued.A revaluation would have decreased the equity of the partner and partnership.This error would cause:

(Multiple Choice)

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Question 46

Amy and Beth's partnership capital balances are $45,000 and $65,000,respectively.They share profits and losses in a ratio of 1:3 for Amy and Beth,respectively.Rockford is admitted to the partnership,invests $55,000 for a 40% interest,and is awarded a bonus.Prepare the journal entry to admit Rockford to the partnership.

(Essay)

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Question 47

Janie and Larry are partners,with beginning capital balances of $67,000 and $55,000 respectively.During the year,Janie withdrew $12,000 and Larry withdrew $18,000.The year's net income of $42,000 was distributed $15,000 to Janie and $27,000 to Larry.Calculate the ending balances in the capital accounts.

(Multiple Choice)

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Question 48

The net income earned by the Cooper,Cross,and Crane partnership is $21,000.Their respective average capital balances are $20,000,$20,000,and $40,000.What is the closing entry to allocate the net income if no agreement was made for division of income?

(Multiple Choice)

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Question 49

The partnership of Brandon and Ryan is being liquidated.All gains and losses are shared in a 3:1 ratio,respectively.Before liquidation,their balance sheet balances are as follows: Cash \ 10,000 Other Assets 7,000 Liabilities 3,000 Brandon, Capital 7,000 Ryan, Capital 7,000 a)If the Other Assets are sold for $10,000,how much capital will each partner receive have before paying liabilities and distributing the remaining assets? b)If the Other Assets are sold for $7,000,how much capital will each partner have before paying liabilities and distributing remaining assets?

(Essay)

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Question 50

Partners Ron and Sandra have $3,000 capital balances and share income and losses in a 2:1 ratio for Ron and Sandra,respectively.Cash equals $1,000,noncash assets are $10,000,and liabilities are $5,000.If all the noncash assets are sold for $5,500,and each partner agrees to make up any capital deficits with personal cash contributions,Sandra eventually will receive cash of:

(Multiple Choice)

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Question 51

Norm and Sam agreed on October 1,201x to enter into a partnership.Norm contributes $100,000 and Sam contributes $75,000.Journalize their initial investments.

(Essay)

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Question 52

Articles of partnership:

(Multiple Choice)

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Question 53

The profit and loss ratio is not required to be equally divided between and among the partners.

(True/False)

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Question 54

When a partnership is terminated,the assets are turned into cash and obligations are paid.This process is called:

(Multiple Choice)

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Question 55

Discuss (a)the purpose of the articles of partnership,and (b)indicate the items that should be included.

(Essay)

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Question 56

Mutual agency means that the act of a single partner is binding on all the other partners.

(True/False)

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Question 57

If Blake invests $10,000 cash in a partnership,Cash is debited and Blake,Capital is credited,$10,000.

(True/False)

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Question 58

Partners Jessica and Jill receive salary allowances of $5,000 and $10,000,respectively.They share income and losses in a 3:1 ratio for Jessica and Jill,respectively.If the partnership suffers a $21,000 loss,by how much would Jessica's capital decrease?

(Multiple Choice)

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Question 59

Katie withdrew from the partnership of Katie,Courtney,and Nathan,and accepted $10,000 cash.Her capital balance was $16,000 and the difference will be shared in a ratio of 2:1 for Courtney and Nathan,respectively.The entry would be to:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 130

Tim and Bev are partners who share profits and losses in the ratio of 6:4 for Tim and Bev,respectively.Their capital balances are $45,000 and $25,000,respectively.If Jenny is admitted to the partnership for $25,000 for a one-fourth interest,her capital balance will be:

Allan and Rick are partners who share profits and losses in the ratio of 3:2 for Allan and Rick,respectively.They have capital balances of $35,000 and $40,000,respectively.If Tammy invests $30,000 for one-third interest,Tammy's capital balance will be:

When two proprietors decide to combine their businesses and form a partnership,GAAP usually requires that noncash assets be taken over at their:

A new partner was admitted but the assets weren't revalued.A revaluation would have decreased the equity of the partner and partnership.This error would cause:

The net income earned by the Cooper,Cross,and Crane partnership is $21,000.Their respective average capital balances are $20,000,$20,000,and $40,000.What is the closing entry to allocate the net income if no agreement was made for division of income?

Norm and Sam agreed on October 1,201x to enter into a partnership.Norm contributes $100,000 and Sam contributes $75,000.Journalize their initial investments.

Articles of partnership:

The profit and loss ratio is not required to be equally divided between and among the partners.

When a partnership is terminated,the assets are turned into cash and obligations are paid.This process is called:

Discuss (a)the purpose of the articles of partnership,and (b)indicate the items that should be included.

Mutual agency means that the act of a single partner is binding on all the other partners.

If Blake invests $10,000 cash in a partnership,Cash is debited and Blake,Capital is credited,$10,000.

Partners Jessica and Jill receive salary allowances of $5,000 and $10,000,respectively.They share income and losses in a 3:1 ratio for Jessica and Jill,respectively.If the partnership suffers a $21,000 loss,by how much would Jessica's capital decrease?

Katie withdrew from the partnership of Katie,Courtney,and Nathan,and accepted $10,000 cash.Her capital balance was $16,000 and the difference will be shared in a ratio of 2:1 for Courtney and Nathan,respectively.The entry would be to:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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