Question 1

________ implies that each partner in a partnership can be called on to personally pay a partnership's debts.

Accepted Answer

The answer of ________ implies that each partner in a...

Question 2

Match each of the following terms with the appropriate definitions.
-The legal relationship among partners whereby each partner can commit or bind the partnership to any contract within the scope of the partnership's business.

Accepted Answer

A) General partner 
B) Limited liability partnership 
C) Unlimited liability of partners 
D) C corporation 
E) Statement of partners' equity
F)Mutual agency
G)Limited partnership
H)S corporation
I)Partnership
J)Partnership contract 
A) General partner 
B) Limited liability partnership 
C) Unlimited liability of partners 
D) C corporation 
E) Statement of partners' equity
F)Mutual agency
G)Limited partnership
H)S corporation
I)Partnership
J)Partnership contract

Question 3

Montez and Flair formed a partnership.Montez contributed $15,000 cash and accounts receivable worth $11,000.Flair contributed cash of $5,000; inventory valued at $16,000; and supplies valued at $2,000.Prepare the journal entries to record each partner's investment in the new partnership.

Accepted Answer

\[\begin{array} { l l l } 
\text { Cash

Question 4

Mesner's and Sanchez's company is organized as a partnership.At the prior year-end,Mesner's equity balance was $258,000 and Sanchez's was $212,000.For the current year,partnership net income is $125,000 ($75,000 allocated to Mesner and $50,000 allocated to Sanchez); withdrawals are $77,000 ($40,000 for Mesner and $37,000 for Sanchez).Compute the total partnership return on equity and the individual partner return on equity ratios.

Accepted Answer

Total part

Question 5

The following information is available regarding Grace Smit's capital account in Enterprise Consulting Group,a general partnership,for a recent year:
$$\begin{array} { l l } 
\text { Beginning of the year balance } & \$ 22,000 \
\text { Share of partrership income } & \$ 8,500 \
\text { Withdrawals made during the year } & \$ 6,000
\end{array}$$
What is Smit's partner return on equity during the year in question?

Accepted Answer

A)  36.6% 
B)  34.7% 
C)  10.8% 
D)  11.4% 
E)  55.7% 
A)  36.6% 
B)  34.7% 
C)  10.8% 
D)  11.4% 
E)  55.7%

Question 6

Mace and Bowen are partners and share equally in income or loss.Mace's current capital balance is $135,000 and Bowen's is $120,000.Mace and Bowen agree to accept Kent with a 30% interest in the partnership.Kent invests $115,000 in the partnership.
-The balances in Mace's and Bowen's capital accounts after admission of the new partner equal:

Accepted Answer

A)  Mace $135,000; Bowen $120,000. 
B)  Mace $137,000; Bowen $122,000. 
C)  Mace $133,000; Bowen $118,000. 
D)  Mace $139,000; Bowen $120,000. 
E)  Mace $135,000; Bowen $124,000. 
A)  Mace $135,000; Bowen $120,000. 
B)  Mace $137,000; Bowen $122,000. 
C)  Mace $133,000; Bowen $118,000. 
D)  Mace $139,000; Bowen $120,000. 
E)  Mace $135,000; Bowen $124,000.

Question 7

Admitting a partner by accepting assets is a personal transaction between one or more current partners and the new partner.

Accepted Answer

A) True 
 B)False

Question 8

Partner net income divided by average partner equity equals ________.

Accepted Answer

Partner re

Question 9

Masters,Hardy,and Rowen are dissolving their partnership.Their partnership agreement allocates income and losses equally among the partners.The current period's ending capital account balances are Masters,$15,000; Hardy,$15,000; Rowen,$(2,000).After all the assets are sold and liabilities are paid,but before any contributions to cover any deficiencies,there is $28,000 in cash to be distributed.Rowen pays $2,000 to cover the deficiency in his account.The general journal entry to record the final distribution would be:

Accepted Answer

A)  Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Cash $30,000. 
B)  Debit Masters, Capital $14,000; debit Hardy, Capital $14,000; credit Cash $28,000. 
C)  Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Rowen, Capital $2,000; credit Cash $28,000. 
D)  Debit Cash $28,000; debit Rowen, Capital $2,000; credit Masters, Capital $15,000; credit Hardy, Capital $15,000. 
E)  Debit Masters, Capital $9,334; debit Hardy, Capital $9,333; debit Rowen, Capital $9,333; credit Cash $28,000. 
A)  Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Cash $30,000. 
B)  Debit Masters, Capital $14,000; debit Hardy, Capital $14,000; credit Cash $28,000. 
C)  Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Rowen, Capital $2,000; credit Cash $28,000. 
D)  Debit Cash $28,000; debit Rowen, Capital $2,000; credit Masters, Capital $15,000; credit Hardy, Capital $15,000. 
E)  Debit Masters, Capital $9,334; debit Hardy, Capital $9,333; debit Rowen, Capital $9,333; credit Cash $28,000.

________ implies that each partner in a partnership can be called on to personally pay a partnership's debts.

Match each of the following terms with the appropriate definitions. -The legal relationship among partners whereby each partner can commit or bind the partnership to any contract within the scope of the partnership's business.

Montez and Flair formed a partnership.Montez contributed $15,000 cash and accounts receivable worth $11,000.Flair contributed cash of $5,000; inventory valued at $16,000; and supplies valued at $2,000.Prepare the journal entries to record each partner's investment in the new partnership.

Admitting a partner by accepting assets is a personal transaction between one or more current partners and the new partner.

Partner net income divided by average partner equity equals ________.

Accounting in Business

Analyzing for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash, fraud, and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Investments

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Exam 16: Partnership Accounting

________ implies that each partner in a partnership can be called on to personally pay a partnership's debts.

Match each of the following terms with the appropriate definitions. -The legal relationship among partners whereby each partner can commit or bind the partnership to any contract within the scope of the partnership's business.

Montez and Flair formed a partnership.Montez contributed $15,000 cash and accounts receivable worth $11,000.Flair contributed cash of $5,000; inventory valued at $16,000; and supplies valued at $2,000.Prepare the journal entries to record each partner's investment in the new partnership.

Admitting a partner by accepting assets is a personal transaction between one or more current partners and the new partner.

Partner net income divided by average partner equity equals ________.

Accounting in Business

Analyzing for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash, fraud, and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Investments

Filters