Question 1

What is the balance of Hanes'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 2

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 3

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 4

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.

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

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 7

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 8

Roberts retires and is paid $160,000 based on an independent appraisal of the business.If the goodwill method is used, what is the capital balance of Dana?

Accepted Answer

A)  $ 20,000. 
B)  $ 60,000. 
C)  $110,000. 
D)  $120,000. 
E)  $230,000. 
A)  $ 20,000. 
B)  $ 60,000. 
C)  $110,000. 
D)  $120,000. 
E)  $230,000.

Question 9

The partnership of Clapton, Seidel, and Thomas is insolvent and will be unable to pay $30,000 in liabilities that are currently due.What recourse is available to the partnership's creditors?

Accepted Answer

A)  They must present equal claims to the three partners as individuals. 
B)  They must try to obtain payment from the partner with the largest capital account balance. 
C)  They cannot seek remuneration from the partners as individuals. 
D)  They may seek remuneration from any partner they choose. 
E)  They must present their claims to the three partners in descending order based on the partners' capital account balances. 
A)  They must present equal claims to the three partners as individuals. 
B)  They must try to obtain payment from the partner with the largest capital account balance. 
C)  They cannot seek remuneration from the partners as individuals. 
D)  They may seek remuneration from any partner they choose. 
E)  They must present their claims to the three partners in descending order based on the partners' capital account balances.

Question 10

What was the balance in Young'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 11

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 12

If C contributes $40,000 to the partnership and the goodwill method is used, what amount will be debited for goodwill?

Accepted Answer

A)  $15,000 
B)  $20,000 
C)  $25,000 
D)  $28,000 
E)  $60,000 
A)  $15,000 
B)  $20,000 
C)  $25,000 
D)  $28,000 
E)  $60,000

Question 13

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 14

What events cause the dissolution of a partnership?

Accepted Answer

The dissolution of a partnership occurs

Question 15

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 16

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.

Question 17

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 18

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 19

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

Accepted Answer

Financial accounting for a partnership d

Question 20

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.

Exam 14: A: Partnerships: Formation and Operation

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

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

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

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?

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

Roberts retires and is paid $160,000 based on an independent appraisal of the business.If the goodwill method is used, what is the capital balance of Dana?

The partnership of Clapton, Seidel, and Thomas is insolvent and will be unable to pay $30,000 in liabilities that are currently due.What recourse is available to the partnership's creditors?

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

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

If C contributes $40,000 to the partnership and the goodwill method is used, what amount will be debited for goodwill?

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

What events cause the dissolution of a partnership?

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

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

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

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

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

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

Filters