Question 1

What was the total capital balance for the partnership at December 31, 2018?

Accepted Answer

A)  $852,000. 
B)  $780,000. 
C)  $708,000. 
D)  $744,000. 
E)  $594,000. 
A)  $852,000. 
B)  $780,000. 
C)  $708,000. 
D)  $744,000. 
E)  $594,000.

Question 2

What was Eaton'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 3

When Danny withdrew from John, Daniel, Harry, and Danny, LLP, he was paid $80,000, although his capital account balance was only $60,000.The four partners shared net income and losses equally, and no revaluation will take place.The journal entry to record the effect on John's capital due to Danny's withdrawal would include:

Accepted Answer

A)  $ 6,667 debit to John, Capital. 
B)  $ 6,667 credit to John, Capital. 
C)  $20,000 debit to John, Capital. 
D)  $ 5,000 debit to John, Capital. 
E)  $ 5,000 credit to John, Capital. 
A)  $ 6,667 debit to John, Capital. 
B)  $ 6,667 credit to John, Capital. 
C)  $20,000 debit to John, Capital. 
D)  $ 5,000 debit to John, Capital. 
E)  $ 5,000 credit to John, Capital.

Question 4

Eden contributed $124,000 in cash to the business to receive a 20% interest in the partnership.Goodwill was to be recorded.The four original partners shared all profits and losses equally.After Eden made his investment, what were the individual capital balances?

Accepted Answer

After allocating the goodwill

Question 5

Partnerships have alternative legal forms including all of the following except:

Accepted Answer

A)  General Partnership. 
B)  Limited Partnership. 
C)  Subchapter S Partnership. 
D)  Limited Liability Partnership. 
E)  Limited Liability Company. 
A)  General Partnership. 
B)  Limited Partnership. 
C)  Subchapter S Partnership. 
D)  Limited Liability Partnership. 
E)  Limited Liability Company.

Question 6

What are the remaining partners' capital balances after Howell's interest is dissolved, assuming the goodwill method is applied?

Accepted Answer

Madrid: $33,000 = ($

Question 7

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

Accepted Answer

A)  $100,000. 
B)  $117,000. 
C)  $119,000. 
D)  $129,000. 
E)  $153,000. 
A)  $100,000. 
B)  $117,000. 
C)  $119,000. 
D)  $129,000. 
E)  $153,000.

Question 8

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

Accepted Answer

A)  $200,000. 
B)  $224,000. 
C)  $238,000. 
D)  $246,000. 
E)  $254,000. 
A)  $200,000. 
B)  $224,000. 
C)  $238,000. 
D)  $246,000. 
E)  $254,000.

Question 9

Jell and Dell were partners with capital balances of $600 and $800, and an income-sharing ratio of 2:3.They admitted Zell with a 30% interest in the partnership, and the total amount of goodwill credited to the original partners was $700.What amount did Zell contribute to the business?

Accepted Answer

A)  $900. 
B)  $560. 
C)  $600. 
D)  $590. 
E)  $630. 
A)  $900. 
B)  $560. 
C)  $600. 
D)  $590. 
E)  $630.

Question 10

For what events or conditions should the Articles of Partnership make provision?

Accepted Answer

The Articles of Partnership should be a

Question 11

What theoretical argument could be made against the recognition of goodwill when there is a change in the ownership of a partnership?

Accepted Answer

Goodwill should be recognized only when

Question 12

James, Keller, and Rivers have the following capital balances; $48,000, $70,000 and $90,000 respectively.Because of a cash shortage James invests an additional $12,000 on June 1st.Each partner withdraws $1,000 per month.James, Keller, and Rivers receive a salary of $13,000, $15,000 and $20,000, respectively, for work done during the year.Each partner receives interest of 8% on that partner's monthly weighted average capital balance without regard to normal drawings.Any remaining profits are split 20%, 30%, and 50% respectively.The net income for the year is $30,000.What are the ending capital balances for each partner?

Accepted Answer

@#IMG-DLM& Remaining income (l

Question 13

The partnership contract for Hanes and Jones LLP provides that Hanes is to receive a bonus of 20% of net income (after the bonus) and that the remaining net income is to be divided equally.If the partnership income before the bonus for the year is $57,600, Hanes' share of this pre-bonus income is:

Accepted Answer

A)  $28,800. 
B)  $33,600. 
C)  $34,560. 
D)  $35,520. 
E)  $38,400. 
A)  $28,800. 
B)  $33,600. 
C)  $34,560. 
D)  $35,520. 
E)  $38,400.

Question 14

What are the remaining partners' capital balances after Dean's interest is dissolved, assuming the bonus method is applied?

Accepted Answer

Hardin: $12,600 = ($

Question 15

Prepare the journal entry for the payment to Dean in the dissolution of his partnership interest, assuming the bonus method is to be applied.

Accepted Answer

The answer of Prepare the journal entry for the payment...

Question 16

How is accounting for a partnership different from accounting for a corporation?

Accepted Answer

Financial accounting for a partnership d

Question 17

What was Wasser's total share of net income for 2018?

Accepted Answer

A)  $34,420. 
B)  $75,540. 
C)  $65,540. 
D)  $70,040. 
E)  $61,420. 
A)  $34,420. 
B)  $75,540. 
C)  $65,540. 
D)  $70,040. 
E)  $61,420.

Question 18

C contributes $38,000 to the partnership and the bonus method is used.What amount will be credited for C's beginning capital balance?

Accepted Answer

A)  $20,000 
B)  $25,000 
C)  $27,600 
D)  $32,600 
E)  $38,000 
A)  $20,000 
B)  $25,000 
C)  $27,600 
D)  $32,600 
E)  $38,000

Question 19

When the hybrid method is used to record the withdrawal of a partner, the partnership

Accepted Answer

A)  Revalues assets and liabilities and records goodwill to the continuing partner but not to the withdrawing partner. 
B)  Revalues liabilities but not assets, and no goodwill is recorded. 
C)  Can recognize goodwill but does not revalue assets and liabilities. 
D)  Revalues assets but not liabilities, and records goodwill to the continuing partner but not to the withdrawing partner. 
E)  Revalues assets and liabilities but does not record goodwill. 
A)  Revalues assets and liabilities and records goodwill to the continuing partner but not to the withdrawing partner. 
B)  Revalues liabilities but not assets, and no goodwill is recorded. 
C)  Can recognize goodwill but does not revalue assets and liabilities. 
D)  Revalues assets but not liabilities, and records goodwill to the continuing partner but not to the withdrawing partner. 
E)  Revalues assets and liabilities but does not record goodwill.

Question 20

What was Cleary'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.

Exam 14: Partnerships: Formation and Operation

What was the total capital balance for the partnership at December 31, 2018?

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

Eden contributed $124,000 in cash to the business to receive a 20% interest in the partnership.Goodwill was to be recorded.The four original partners shared all profits and losses equally.After Eden made his investment, what were the individual capital balances?

Partnerships have alternative legal forms including all of the following except:

What are the remaining partners' capital balances after Howell's interest is dissolved, assuming the goodwill method is applied?

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

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

Jell and Dell were partners with capital balances of $600 and $800, and an income-sharing ratio of 2:3.They admitted Zell with a 30% interest in the partnership, and the total amount of goodwill credited to the original partners was $700.What amount did Zell contribute to the business?

For what events or conditions should the Articles of Partnership make provision?

What theoretical argument could be made against the recognition of goodwill when there is a change in the ownership of a partnership?

The partnership contract for Hanes and Jones LLP provides that Hanes is to receive a bonus of 20% of net income (after the bonus) and that the remaining net income is to be divided equally.If the partnership income before the bonus for the year is $57,600, Hanes' share of this pre-bonus income is:

What are the remaining partners' capital balances after Dean's interest is dissolved, assuming the bonus method is applied?

Prepare the journal entry for the payment to Dean in the dissolution of his partnership interest, assuming the bonus method is to be applied.

How is accounting for a partnership different from accounting for a corporation?

What was Wasser's total share of net income for 2018?

C contributes $38,000 to the partnership and the bonus method is used.What amount will be credited for C's beginning capital balance?

When the hybrid method is used to record the withdrawal of a partner, the partnership

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

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

Filters