Question 1

What accounting transactions are not recorded by an accountant during partnership liquidation?

Accepted Answer

A)  The conversion of partnership assets into cash. 
B)  The allocation of gains and losses from sales of assets. 
C)  The payment of liabilities and expenses. 
D)  The initiation of legal action by creditors of the partnership. 
E)  Write-off of remaining unpaid debts. 
A)  The conversion of partnership assets into cash. 
B)  The allocation of gains and losses from sales of assets. 
C)  The payment of liabilities and expenses. 
D)  The initiation of legal action by creditors of the partnership. 
E)  Write-off of remaining unpaid debts.

Question 2

Prepare a schedule to calculate the safe installment payments to be made to the partners at the end of February.

Accepted Answer

The answer of Prepare a schedule to calculate the safe...

Question 3

A partnership had the following account balances: Cash, $91,000; Other Assets, $702,000; Liabilities, $338,000; Polk, Capital (50% of profits and losses), $221,000; Garfield, Capital (30%), $143,000; Arthur, Capital (20%), $91,000.The company liquidated and $10,400 became available to the partners.
Required:
Who would have received the $10,400?

Accepted Answer

Since the partnership had total capital

Question 4

Compute safe cash payments after the noncash assets have been sold and the liquidation expenses have been paid.

Accepted Answer

Safe Cash

Question 5

Which of the following statements is false concerning the partnership Statement of Liquidation?

Accepted Answer

A)  Liquidations may take a considerable length of time to complete. 
B)  Frequent reporting by the accountant is rarely necessary. 
C)  The Statement of Liquidation provides a listing of transactions to date, current cash, and capital account balances. 
D)  The Statement of Liquidation provides a listing of property still held by the partnership as well as liabilities remaining unpaid. 
E)  The Statement of Liquidation keeps creditors and partners apprised of the results of the process of dissolution. 
A)  Liquidations may take a considerable length of time to complete. 
B)  Frequent reporting by the accountant is rarely necessary. 
C)  The Statement of Liquidation provides a listing of transactions to date, current cash, and capital account balances. 
D)  The Statement of Liquidation provides a listing of property still held by the partnership as well as liabilities remaining unpaid. 
E)  The Statement of Liquidation keeps creditors and partners apprised of the results of the process of dissolution.

Question 6

If the land is sold for $450,000, what amount will Roberts receive in the final settlement?

Accepted Answer

A)  $ 0. 
B)  $ 30,000. 
C)  $217,500. 
D)  $362,500. 
E)  $502,500. 
A)  $ 0. 
B)  $ 30,000. 
C)  $217,500. 
D)  $362,500. 
E)  $502,500.

Question 7

For what amount would noncash assets need to be sold to generate enough cash in order that at least one partner would receive some cash upon liquidation?

Accepted Answer

A)  $185,000 
B)  $170,000 
C)  $165,000 
D)  $ 95,000 
E)  $ 90,000 
A)  $185,000 
B)  $170,000 
C)  $165,000 
D)  $ 95,000 
E)  $ 90,000

Question 8

How much of this money should Zobart receive?

Accepted Answer

A)  $15,467. 
B)  $14,467. 
C)  $17,333. 
D)  $15,633. 
E)  $15,867. 
A)  $15,467. 
B)  $14,467. 
C)  $17,333. 
D)  $15,633. 
E)  $15,867.

Question 9

What is the preferred method of resolving a partner's deficit balance, according to the Uniform Partnership Act?

Accepted Answer

A)  Partners never have a deficit balance. 
B)  The other partners must contribute personal assets to cover the deficit balance. 
C)  The partnership must sell assets in order to cover the deficit balance. 
D)  The partner with a deficit balance must contribute personal assets to cover the deficit balance. 
E)  The partner with a deficit balance contributes personal assets only if those personal assets exceed personal liabilities. 
A)  Partners never have a deficit balance. 
B)  The other partners must contribute personal assets to cover the deficit balance. 
C)  The partnership must sell assets in order to cover the deficit balance. 
D)  The partner with a deficit balance must contribute personal assets to cover the deficit balance. 
E)  The partner with a deficit balance contributes personal assets only if those personal assets exceed personal liabilities.

Question 10

Matching
(1.) The statement of liquidation
(2.) Deficit capital account balances
(3.) Safe capital account balances
(4.) Predistribution plan
(A.) A report produced periodically by the accountant to disclose transactions that have occurred during liquidation, the remaining assets and liabilities, and updated capital account balances.
(B) At the start of a liquidation, this document provides guidance for all payments to be made to the partners throughout the liquidation.
(C.) One or more partners may have a negative capital account balance often as a result of losses incurred in disposing of assets.
(D.) A provision for an equitable distribution of assets during liquidation.

Accepted Answer

(1) A, (2)

Question 11

Why is a preliminary distribution of partnership assets prepared?

Accepted Answer

A preliminary distribution of assets is

Question 12

Assume that noncash assets were sold for $58,000 and liquidation expenses in the amount of $10,000 were incurred.If Lewis was personally insolvent and could not contribute any assets to the partnership, and Keaton and Meador were both solvent, what amount of cash would Keaton receive from the distribution of partnership assets?

Accepted Answer

A)  $0. 
B)  $56,000. 
C)  $57,600. 
D)  $59,600. 
E)  $60,000. 
A)  $0. 
B)  $56,000. 
C)  $57,600. 
D)  $59,600. 
E)  $60,000.

Question 13

A partnership held three assets: Cash, $13,000; Land, $45,000; and a Building, $65,000.There were no recorded liabilities.The partners anticipated that expenses required to liquidate their partnership would amount to $6,000.Capital account balances were as follows:
King, Capital: $32,700
Murphy, Capital: 36,400
Madison, Capital: 26,000
Pond, Capital: 27,900
The partners shared profits and losses 30:30:20:20, respectively.
Required:
Prepare a proposed schedule of liquidation, showing how cash could be safely distributed to the partners at this time.

Accepted Answer

Murphy received $700

Question 14

What is a safe cash payment?

Accepted Answer

A safe cash payment is a fair allocation

Question 15

What would be the maximum amount Garr might have to contribute to the partnership to eliminate a deficit balance in his account?

Accepted Answer

@#IMG-DLM& The maximum amount that Garr

Question 16

Which one of the following statements is true for a predistribution plan?

Accepted Answer

A)  The first available $16,000 would go to Newman. 
B)  The first available $20,000 would go to Dancey. 
C)  The first available $8,000 would go to Jahn. 
D)  The first available $8,000 would go to Newman. 
E)  The first available $4,000 would go to Jahn. 
A)  The first available $16,000 would go to Newman. 
B)  The first available $20,000 would go to Dancey. 
C)  The first available $8,000 would go to Jahn. 
D)  The first available $8,000 would go to Newman. 
E)  The first available $4,000 would go to Jahn.

Question 17

What is the role of the accountant during the liquidation process?

Accepted Answer

The accountant works to ensure the equit

Question 18

How much of the $31,000 in the cash account should Justice receive?

Accepted Answer

A)  $15,467. 
B)  $15,533. 
C)  $17,333. 
D)  $16,533. 
E)  $15,867. 
A)  $15,467. 
B)  $15,533. 
C)  $17,333. 
D)  $16,533. 
E)  $15,867.

Question 19

Determine the cash to be retained and prepare a schedule to distribute $35,000 cash to the partners.

Accepted Answer

The answer of Determine the cash to be retained and...

Question 20

Assuming that the noncash assets were sold for $134,000, which partner(s) would have been required to contribute assets to the partnership to cover a deficit in his or her capital account, prior to considering the liquidation expenses incurred?

Accepted Answer

A)  Abrams. 
B)  Bartle. 
C)  Creighton. 
D)  Abrams and Creighton. 
E)  Abrams and Bartle. 
A)  Abrams. 
B)  Bartle. 
C)  Creighton. 
D)  Abrams and Creighton. 
E)  Abrams and Bartle.

Exam 15: A: Partnerships: Termination and Liquidation

What accounting transactions are not recorded by an accountant during partnership liquidation?

Prepare a schedule to calculate the safe installment payments to be made to the partners at the end of February.

Compute safe cash payments after the noncash assets have been sold and the liquidation expenses have been paid.

Which of the following statements is false concerning the partnership Statement of Liquidation?

If the land is sold for $450,000, what amount will Roberts receive in the final settlement?

For what amount would noncash assets need to be sold to generate enough cash in order that at least one partner would receive some cash upon liquidation?

How much of this money should Zobart receive?

What is the preferred method of resolving a partner's deficit balance, according to the Uniform Partnership Act?

Why is a preliminary distribution of partnership assets prepared?

What is a safe cash payment?

What would be the maximum amount Garr might have to contribute to the partnership to eliminate a deficit balance in his account?

Which one of the following statements is true for a predistribution plan?

What is the role of the accountant during the liquidation process?

How much of the $31,000 in the cash account should Justice receive?

Determine the cash to be retained and prepare a schedule to distribute $35,000 cash to the partners.

Assuming that the noncash assets were sold for $134,000, which partner(s) would have been required to contribute assets to the partnership to cover a deficit in his or her capital account, prior to considering the liquidation expenses incurred?

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

Partnerships: Formation and Operation

A: Partnerships: Formation and Operation

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