Exam 17: Partnership

After several years of business,Abel,Barney,and Cole are liquidating.The following are post-closing account balances. Cash 18,000 Inventory 73,000 Otherassets 157,000 Accounts Payable 61,000 Abel, Capital 50,000 Earney, Capital 50,000 Cole, Capital 87,000 Non-cash assets are sold for $275,000.Profits and losses are shared equally. Record the payment of the liabilities.

A bonus paid by an incoming partner to the old partners is shared:

When a partner withdraws,the partnership may have an audit to adjust the assets to their:

A partnership cannot be formed with an oral agreement.

Given the following accounts: [1] Cash [2] Accounts receivable [3] Allowance for doubtful accounts [4] Merchandise inventory [5] Store supplies [6] Store equipment [7] Accumulated depreciation [8] Notes payable [9] Accounts payable [10] Able Partner's Capital [11] Baker Partner's Capital [12] Able Partner's withdrawals [13] Baker Partner's withdrawals [14] Income summary [15] Service revenue [16] Gain on realization [17] Loss on realization Indicate the account(s) to be debited and credited to record the following transactions. -During liquidation realized less than book value for the store equipment. Debit ________ & ________ & ________ Credit ________ & ________ & ________

Given the following accounts: [1] Cash [2] Accounts receivable [3] Allowance for doubtful accounts [4] Merchandise inventory [5] Store supplies [6] Store equipment [7] Accumulated depreciation [8] Notes payable [9] Accounts payable [10] Able Partner's Capital [11] Baker Partner's Capital [12] Able Partner's withdrawals [13] Baker Partner's withdrawals [14] Income summary [15] Service revenue [16] Gain on realization [17] Loss on realization Indicate the account(s) to be debited and credited to record the following transactions. -Closed Baker Partner's withdrawals. Debit ________ & ________ & ________ Credit ________ & ________ & ________

Allison and Josh are partners in a business.Allison's capital is $60,000 and Josh's capital is $100,000.Profits for the year are $80,000.They agree to share profits and losses as follows: Allison Josh Salaries \ 20,000 \ 40,000 Interest on capital 10\% 10\% Remaining profits and losses 3/5 2/5 Josh's share of the profit is:

When a partnership is liquidated,the assets are sold and the cash realized is applied first to the:

Amy and Beth's partnership capital balances are $40,000 and $60,000,respectively.They share profits and losses in a ratio of 1:3.Rockford is admitted to the partnership,invests $60,000 for a 40% interest,and is awarded a bonus.Prepare the journal entry to admit Rockford to the partnership.

When a partnership is liquidated,the journal entry to pay the claims of creditors would include:

When a partner withdraws from a partnership,the company can:

Partners Jessica and Jill receive salary allowances of $5,000 and $10,000,respectively.They share income and losses in a 3:1 ratio.If the partnership suffers a $21,000 loss,by how much would Jessica's capital decrease?

Salary and interest allowances for partners are:

When a partnership is dissolved:

Many associations such as medical centers and law firms could organize as a:

Allan and Rick are partners who share profits and losses in the ratio of 3:2.They have capital balances of $40,000 and $30,000,respectively.If Tammy invests $25,000 for one-third interest,Tammy's capital balance will be:

A general partner is:

The different partners are taxed on:

After all liabilities have been paid,the remaining assets are always distributed evenly.

Prepare the journal entry to record the partners' investment in the company. Todd and Dillon combine their two businesses and enter into a partnership.Todd invests $5,000 cash and equipment on his books at $6,500 with accumulated depreciation of $1,500.The fair market value of the equipment is $5,000.Dillon is investing $8,000 cash and $700 accounts payable.