Exam 17: Partnership

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Track and Smith are partners sharing profits and losses in a 3:2 ratio. Their capital balances are $10,000 and $20,000, respectively. The partners agree to admit Don for $10,000 for a 30% interest in the partnership. Smith's capital balance after admitting Don is:

(Multiple Choice)

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Question 121

The last step in a partnership liquidation is to divide any remaining proceeds between and among the partners.

(True/False)

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Question 122

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's share of the profits before paying salaries and interest on capital is:

(Multiple Choice)

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Question 123

The income/loss agreement was ignored when closing the income summary and all income was distributed evenly. This error would cause:

(Multiple Choice)

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Question 124

Nathan Long is entering into a partnership with Terri. Nathan is investing $2,000 cash and equipment currently on Nathan's books at $6,000 and accumulated depreciation of $1,000. The equipment has a fair market value of $4,000. The entry to record Nathan's investment should include be to:

(Multiple Choice)

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Question 125

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?

(Multiple Choice)

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Question 126

Katie withdrew from the partnership of Katie, Courtney, and Nathan, and accepted $15,000 cash. Her capital balance was $18,000 and the difference will be shared in a ratio of 2:1. The entry would be to:

(Multiple Choice)

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Question 127

Applying the interest allowance method, compute Julie and Jennifer's share of net income if Julie invested $40,000 and Jennifer invested $24,000 at an 8% interest rate, with the remainder to be divided equally. Net income was $10,000.

(Multiple Choice)

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Question 128

Janie and Larry are partners, with beginning capital balances of $60,000 and $40,000 respectively. During the year, Janie withdrew $10,000 and Larry withdrew $15,000. The year's net income of $30,000 was distributed $10,000 to Janie and $20,000 to Larry. Calculate the ending balances in the capital accounts.

(Multiple Choice)

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Question 129

Partners are required to report their share of earnings on their personal tax return.

(True/False)

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Question 130

Showing 121 - 130 of 130

Track and Smith are partners sharing profits and losses in a 3:2 ratio. Their capital balances are $10,000 and $20,000, respectively. The partners agree to admit Don for $10,000 for a 30% interest in the partnership. Smith's capital balance after admitting Don is:

The last step in a partnership liquidation is to divide any remaining proceeds between and among the partners.

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's share of the profits before paying salaries and interest on capital is:

The income/loss agreement was ignored when closing the income summary and all income was distributed evenly. This error would cause:

Nathan Long is entering into a partnership with Terri. Nathan is investing $2,000 cash and equipment currently on Nathan's books at $6,000 and accumulated depreciation of $1,000. The equipment has a fair market value of $4,000. The entry to record Nathan's investment should include be to:

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?

Katie withdrew from the partnership of Katie, Courtney, and Nathan, and accepted $15,000 cash. Her capital balance was $18,000 and the difference will be shared in a ratio of 2:1. The entry would be to:

Applying the interest allowance method, compute Julie and Jennifer's share of net income if Julie invested $40,000 and Jennifer invested $24,000 at an 8% interest rate, with the remainder to be divided equally. Net income was $10,000.

Partners are required to report their share of earnings on their personal tax return.

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes: the Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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