Question 1

The advantages of the partnership form of business organization, compared to corporations, include

Accepted Answer

A)  Single taxation. 
B)  Ease of raising capital. 
C)  Mutual agency. 
D)  Limited liability. 
E)  Difficulty of formation. 
A)  Single taxation. 
B)  Ease of raising capital. 
C)  Mutual agency. 
D)  Limited liability. 
E)  Difficulty of formation. A

Question 2

Which of the following could be used as a basis to allocate profits among partners who are active in the management of the partnership? 1) Allocation of salaries.
2) The number of years with the partnership.
3) The amount of time each partner works.
4) The average capital invested.

Accepted Answer

A)  1 and 2. 
B)  1 and 3. 
C)  1, 2, and 4. 
D)  1, 3, and 4. 
E)  1, 2, 3, and 4. 
A)  1 and 2. 
B)  1 and 3. 
C)  1, 2, and 4. 
D)  1, 3, and 4. 
E)  1, 2, 3, and 4. E

Question 3

What was Eaton's total share of net loss for the first year?

Accepted Answer

A)  $ 3,900 loss. 
B)  $11,700 loss. 
C)  $10,400 loss. 
D)  $24,700 loss. 
E)  $ 9,100 loss. 
A)  $ 3,900 loss. 
B)  $11,700 loss. 
C)  $10,400 loss. 
D)  $24,700 loss. 
E)  $ 9,100 loss. C

Question 4

What is the total partnership capital after Anne retires receiving $80,000 and using the bonus method?

Accepted Answer

A)  $70,000. 
B)  $40,000. 
C)  $60,000. 
D)  $80,000. 
E)  $42,000. 
A)  $70,000. 
B)  $40,000. 
C)  $60,000. 
D)  $80,000. 
E)  $42,000.

Question 5

What was Cleary's capital account balance at the end of 2018?

Accepted Answer

A)  $163,420. 
B)  $151,420. 
C)  $139,420. 
D)  $100,000. 
E)  $142,000. 
A)  $163,420. 
B)  $151,420. 
C)  $139,420. 
D)  $100,000. 
E)  $142,000.

Question 6

What was Nolan's capital balance at the end of 2018?

Accepted Answer

A)  $139,420. 
B)  $246,000. 
C)  $276,540. 
D)  $279,440. 
E)  $304,040. 
A)  $139,420. 
B)  $246,000. 
C)  $276,540. 
D)  $279,440. 
E)  $304,040.

Question 7

C contributes $10,000 to the partnership and the goodwill method is used.What will be the result of the goodwill calculation?

Accepted Answer

A)  Goodwill of $15,000; split among the original partners. 
B)  Goodwill of $15,000; all to C. 
C)  Goodwill of $15,000; split among all four partners: P, L, O, and C. 
D)  Goodwill of $12,000; all to C. 
E)  Goodwill of $12,000; split among original partners. 
A)  Goodwill of $15,000; split among the original partners. 
B)  Goodwill of $15,000; all to C. 
C)  Goodwill of $15,000; split among all four partners: P, L, O, and C. 
D)  Goodwill of $12,000; all to C. 
E)  Goodwill of $12,000; split among original partners.

Question 8

Determine the amount of net income allocated to each partner for 2018.(Round all calculations to the nearest whole dollar).

Accepted Answer

Distributi

Question 9

If C is to contribute an amount equal to his book value share of the new partnership, how much should C contribute?

Accepted Answer

A)  $22,000 
B)  $20,000 
C)  $25,000 
D)  $18,000 
E)  $10,000 
A)  $22,000 
B)  $20,000 
C)  $25,000 
D)  $18,000 
E)  $10,000

Question 10

Reed, Sharp, and Tucker were partners with capital account balances of $80,000, $100,000, and $70,000, respectively.They agreed to admit Upton to the partnership.Upton purchased 30% of each partner's interest, with payments directly to Reed, Sharp, and Tucker of $32,000, $40,000, and $28,000, respectively.Before the admission of Upton, the profit and loss sharing ratio was 2:3:2.The partners agreed to use the book value method to account for the admission of Upton to the partnership.
Required:
Prepare the journal entry to record the admission of Upton to the partnership.

Accepted Answer

The answer of Reed, Sharp, and Tucker were partners with...

Question 11

What is the balance of Donald's capital account after the new partnership is created?

Accepted Answer

A)  $ 84,000. 
B)  $100,000. 
C)  $140,000. 
D)  $176,000. 
E)  $200,000. 
A)  $ 84,000. 
B)  $100,000. 
C)  $140,000. 
D)  $176,000. 
E)  $200,000.

Question 12

Anne retires and is paid $80,000 based on an independent appraisal of the business.If the goodwill method is used, what is the capital of the remaining partners?

Accepted Answer

A)  Donald, $55,000; Todd, $60,000 
B)  Donald, $40,000; Todd, $30,000 
C)  Donald, $65,000; Todd, $55,000 
D)  Donald, $15,000; Todd, $30,000 
E)  Donald, $25,000; Todd, $0 
A)  Donald, $55,000; Todd, $60,000 
B)  Donald, $40,000; Todd, $30,000 
C)  Donald, $65,000; Todd, $55,000 
D)  Donald, $15,000; Todd, $30,000 
E)  Donald, $25,000; Todd, $0

Question 13

What was Young's total share of net income for the second year?

Accepted Answer

A)  $17,160 income. 
B)  $ 4,160 income. 
C)  $19,760 income. 
D)  $17,290 income. 
E)  $28,080 income. 
A)  $17,160 income. 
B)  $ 4,160 income. 
C)  $19,760 income. 
D)  $17,290 income. 
E)  $28,080 income.

Question 14

What was the balance in Eaton's Capital account at the end of the first year?

Accepted Answer

A)  $120,900. 
B)  $118,300. 
C)  $126,100. 
D)  $ 80,600. 
E)  $111,500. 
A)  $120,900. 
B)  $118,300. 
C)  $126,100. 
D)  $ 80,600. 
E)  $111,500.

Question 15

Eden acquired a 20% interest in the partnership by contributing a total of $71,500 directly to the other four partners.Goodwill is to be recorded.Profits and losses have previously been split according to the following percentages: Adams, 15%; Barnes, 35%; Cordas, 30%; and Davis, 20%.After Eden made his investment, what were the individual capital balances?

Accepted Answer

The partners' capita

Question 16

By what methods can a person gain admittance to a partnership?

Accepted Answer

A person can gain admittance t

Question 17

Eden contributes $49,000 into the partnership for a 25% interest.The four original partners share profits and losses equally.Using the bonus method, determine the balances for each of the five partners after Eden joins the partnership.

Accepted Answer

Eden's contribution of $49,000 into the

Question 18

What is the balance of May's capital account after the new partnership is created?

Accepted Answer

A)  $ 84,000. 
B)  $100,000. 
C)  $140,000. 
D)  $176,000. 
E)  $200,000. 
A)  $ 84,000. 
B)  $100,000. 
C)  $140,000. 
D)  $176,000. 
E)  $200,000.

Question 19

Determine the balance in both capital accounts at the end of 2018 to the nearest dollar.

Accepted Answer

Capital ac

Question 20

Eden acquired a 20% interest in the partnership by contributing a total of $71,500 directly to the other four partners.No goodwill is to be recorded.Profits and losses have previously been split according to the following percentages: Adams, 15%, Barnes, 35%, Cordas, 30%, and Davis, 20%.After Eden made his investment, what were the individual capital balances?

Accepted Answer

The partners' balanc

Exam 14: Partnerships: Formation and Operation

The advantages of the partnership form of business organization, compared to corporations, include

Which of the following could be used as a basis to allocate profits among partners who are active in the management of the partnership? 1) Allocation of salaries. 2) The number of years with the partnership. 3) The amount of time each partner works. 4) The average capital invested.

What was Eaton's total share of net loss for the first year?

What is the total partnership capital after Anne retires receiving $80,000 and using the bonus method?

What was Cleary's capital account balance at the end of 2018?

What was Nolan's capital balance at the end of 2018?

C contributes $10,000 to the partnership and the goodwill method is used.What will be the result of the goodwill calculation?

Determine the amount of net income allocated to each partner for 2018.(Round all calculations to the nearest whole dollar).

If C is to contribute an amount equal to his book value share of the new partnership, how much should C contribute?

What is the balance of Donald's capital account after the new partnership is created?

Anne retires and is paid $80,000 based on an independent appraisal of the business.If the goodwill method is used, what is the capital of the remaining partners?

What was Young's total share of net income for the second year?

What was the balance in Eaton's Capital account at the end of the first year?

By what methods can a person gain admittance to a partnership?

Eden contributes $49,000 into the partnership for a 25% interest.The four original partners share profits and losses equally.Using the bonus method, determine the balances for each of the five partners after Eden joins the partnership.

What is the balance of May's capital account after the new partnership is created?

Determine the balance in both capital accounts at the end of 2018 to the nearest dollar.

The Equity Method of Accounting for Investments

A: the Equity Method of Accounting for Investments

Consolidation of Financial Information

A: Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

A: Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

A: Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

A: Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

A: Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

A: Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

A: Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

A: Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

A: Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

A: Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

A: Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

A: Accounting for Legal Reorganizations and Liquidations

A: Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

A: Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

A: Accounting for State and Local Governments, Part I

Accounting for State and Local Governments, Part II

A: Accounting for State and Local Governments, Part II

Accounting for Not-For-Profit Entities

A: Accounting for Not-For-Profit Entities

Accounting for Estates and Trusts

A: Accounting for Estates and Trusts

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