Question 1

What was Wasser's capital balance at the end of 2017?

Accepted Answer

A)  $150,000. 
B)  $160,000. 
C)  $165,000. 
D)  $213,000. 
E)  $201,000. 
A)  $150,000. 
B)  $160,000. 
C)  $165,000. 
D)  $213,000. 
E)  $201,000.

Question 2

What was Young'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.

Question 3

Cherryhill and Hace had been partners for several years, and they decided to admit Quincy to the partnership.The accountant for the partnership believed that the dissolved partnership and the newly formed partnership were two separate entities.What method would the accountant have used for recording the admission of Quincy to the partnership?

Accepted Answer

A)  The bonus method. 
B)  The equity method. 
C)  The goodwill method. 
D)  The proportionate method. 
E)  The cost method. 
A)  The bonus method. 
B)  The equity method. 
C)  The goodwill method. 
D)  The proportionate method. 
E)  The cost method.

Question 4

Anne retires and is paid $80,000 based on the terms of the original partnership agreement.If the bonus method is used, what is the capital of the remaining partners?

Accepted Answer

A)  Donald, $40,000; Todd, $30,000 
B)  Donald, $30,000; Todd, $10,000 
C)  Donald, $50,000; Todd, $50,000 
D)  Donald, $24,000; Todd, $18,000 
E)  Donald, $70,000; Todd, $40,000 
A)  Donald, $40,000; Todd, $30,000 
B)  Donald, $30,000; Todd, $10,000 
C)  Donald, $50,000; Todd, $50,000 
D)  Donald, $24,000; Todd, $18,000 
E)  Donald, $70,000; Todd, $40,000

Question 5

Jipsom and Klark were partners with capital account balances of $80,000 and $100,000, respectively.Looney directly paid $32,000 to Jipsom and $40,000 to Klark for 30% of their interests in the partnership.Jipsom and Klark shared income in the ratio of 2:3.They believed that revaluation of the partnership was appropriate when a new partner was admitted.
Required:
Prepare the journal entries to record the admission of Looney to the partnership.

Accepted Answer

The answer of Jipsom and Klark were partners with capital...

Question 6

The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5:3:2 ratio, respectively.The capital account balances on January 1, 2018, were as follows:   The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values.Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment.The amount of cash that Dorr should invest in the partnership is:

Accepted Answer

A)  $25,000. 
B)  $30,000. 
C)  $37,500. 
D)  $75,000. 
E)  $90,000. 
A)  $25,000. 
B)  $30,000. 
C)  $37,500. 
D)  $75,000. 
E)  $90,000.

Question 7

Brown and Green are forming a business as partners.If they do not create a formal written partnership agreement, what risks are they exposing themselves to?

Accepted Answer

Due to the fact that business partners a

Question 8

What is the dissolution of a partnership?

Accepted Answer

The dissolution of a partnersh

Question 9

What was Thurman'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 10

What was Wasser's total share of net income for 2017?

Accepted Answer

A)  $63,000. 
B)  $53,000. 
C)  $58,000. 
D)  $29,000. 
E)  $51,000. 
A)  $63,000. 
B)  $53,000. 
C)  $58,000. 
D)  $29,000. 
E)  $51,000.

Question 11

Record the journal entry to allocate the salary of Noris.

Accepted Answer

The answer of Record the journal entry to allocate the...

Question 12

What events cause the dissolution of a partnership?

Accepted Answer

The dissolution of a partnership occurs

Question 13

Determine the amount of net income allocated to each partner for 2017.

Accepted Answer

Distributi

Question 14

What is the new total balance of the partnership accounts?

Accepted Answer

A)  $ 84,000. 
B)  $140,000. 
C)  $176,000. 
D)  $200,000. 
E)  $400,000. 
A)  $ 84,000. 
B)  $140,000. 
C)  $176,000. 
D)  $200,000. 
E)  $400,000.

Question 15

What was the remainder portion of net income allocated to Nolan for 2018?

Accepted Answer

A)  $45,440. 
B)  $58,040. 
C)  $70,040. 
D)  $72,000. 
E)  $82,040. 
A)  $45,440. 
B)  $58,040. 
C)  $70,040. 
D)  $72,000. 
E)  $82,040.

Question 16

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

Accepted Answer

A)  The legal requirements for formation. 
B)  Unlimited liability for the partners. 
C)  The requirement for the partnership to pay income taxes. 
D)  The extent of governmental regulation. 
E)  The complexity of operations. 
A)  The legal requirements for formation. 
B)  Unlimited liability for the partners. 
C)  The requirement for the partnership to pay income taxes. 
D)  The extent of governmental regulation. 
E)  The complexity of operations.

Question 17

Prepare the journal entries for the dissolution of Howell's partnership interest, assuming the goodwill method is to be applied.

Accepted Answer

The answer of Prepare the journal entries for the dissolution...

Question 18

Record the journal entry for the admission of Noris.Goodwill is not to be recorded.

Accepted Answer

The answer of Record the journal entry for the admission...

Question 19

What was the balance in Thurman'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 20

What is the total partnership capital after Roberts retires receiving $160,000 and using the goodwill method?

Accepted Answer

A)  $290,000. 
B)  $176,000. 
C)  $ 80,000. 
D)  $120,000. 
E)  $230,000. 
A)  $290,000. 
B)  $176,000. 
C)  $ 80,000. 
D)  $120,000. 
E)  $230,000.

Exam 14: Partnerships: Formation and Operation

What was Wasser's capital balance at the end of 2017?

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

Anne retires and is paid $80,000 based on the terms of the original partnership agreement.If the bonus method is used, what is the capital of the remaining partners?

Brown and Green are forming a business as partners.If they do not create a formal written partnership agreement, what risks are they exposing themselves to?

What is the dissolution of a partnership?

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

What was Wasser's total share of net income for 2017?

Record the journal entry to allocate the salary of Noris.

What events cause the dissolution of a partnership?

Determine the amount of net income allocated to each partner for 2017.

What is the new total balance of the partnership accounts?

What was the remainder portion of net income allocated to Nolan for 2018?

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

Prepare the journal entries for the dissolution of Howell's partnership interest, assuming the goodwill method is to be applied.

Record the journal entry for the admission of Noris.Goodwill is not to be recorded.

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

What is the total partnership capital after Roberts retires receiving $160,000 and using the goodwill method?

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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