Question 1

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

Accepted Answer

A)  $201,000. 
B)  $263,520. 
C)  $264,540. 
D)  $304,040. 
E)  $313,780. 
A)  $201,000. 
B)  $263,520. 
C)  $264,540. 
D)  $304,040. 
E)  $313,780. C

Question 2

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. C

Question 3

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. B

Question 4

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

Accepted Answer

A)  $133,380. 
B)  $ 84,760. 
C)  $105,690. 
D)  $132,860. 
E)  $ 71,760. 
A)  $133,380. 
B)  $ 84,760. 
C)  $105,690. 
D)  $132,860. 
E)  $ 71,760.

Question 5

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 6

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 7

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 8

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 9

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 10

What was Nolan'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 11

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 12

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 13

What was the amount of interest attributed to Wasser in the income distribution for 2018?

Accepted Answer

A)  $17,600. 
B)  $18,800. 
C)  $20,100. 
D)  $17,800. 
E)  $30,100. 
A)  $17,600. 
B)  $18,800. 
C)  $20,100. 
D)  $17,800. 
E)  $30,100.

Question 14

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 15

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 16

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

Accepted Answer

The Articles of Partnership should be a

Question 17

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 18

What was Cleary'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 19

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

Question 20

The appropriate format of the December 31, 2017 closing entry for John & Hope Limited Liability Partnership, whose two partners had withdrawn their salaries from the partnership during the year, is:

Accepted Answer

The answer of The appropriate format of the December 31,...

Exam 14: A: Partnerships: Formation and Operation

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

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

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

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

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

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

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

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

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

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 was the amount of interest attributed to Wasser in the income distribution for 2018?

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

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

The appropriate format of the December 31, 2017 closing entry for John & Hope Limited Liability Partnership, whose two partners had withdrawn their salaries from the partnership during the year, is:

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

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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