The balance sheet of Ryan and Peter's partnership as of December 31,2018,is given below. \[\begin{array} { | l | r | l | r | } \hline { \text { Assets } } & &{ \text { Liabilities } } & \\ \hline \text { Cash } & \$ 15,000 & \text { Accounts Payable } & \$ 15,000 \\ \hline \text { Accounts Receivable } & 12,000& \text { Other liabilities } & 25,000 \\ \hline \text { Furniture } & 25,000 & \text { Partners' Equity } & \\ \hline \text { Equipment } & 36,000 & \text { Ryan, Capital } & 26,000 \\ \hline \text { Other assets } & \underline { 8,000 }& \text { Peter, Capital } & \underline { 30,000 } \\ \hline \text { Total assets } & \$ 96,000& \text { Total liabilities and partners' equity } & \underline {\$ 96,000 } \\ \hline \end{array}\] Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership.After completing all the liquidation procedures (assuming all assets and liabilities were liquidated at book value),the business is left with $56,000 cash.As a result,Ryan will receive ________.

A) $26,000 B) $30,000 C) $56,000 D) $36,000 A) $26,000 B) $30,000 C) $56,000 D) $36,000

Exam 12: Partnerships

Simonsen,Paulson,and Richardson are partners in a firm with the following capital account balances: Simonsen \ 40,000 Paulson 180,000 Richardson 120,000 Paulson is retiring from the partnership on December 31,2018.The profit-and-loss-sharing ratio among Simonsen,Paulson,and Richardson is 1:3:2,in the order given.Paulson is paid $100,000 cash in full compensation for her capital account balance.Which of the following journal entries would the firm record for this transaction? (Round the final answer to the nearest dollar.)

(Multiple Choice)

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Question 21

In which of the following types of business organizations do the owners have unlimited personal liabilities for the business's debts?

(Multiple Choice)

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Question 22

Simonsen,Paulson,and Richardson are partners in a firm with the following capital account balances: Simonsen \ 60,000 Paulson 170,000 Richardson 90,000 The profit-and-loss-sharing ratio among Simonsen,Paulson,and Richardson is 1:3:2,in the order given.Paulson is retiring from the partnership on December 31,2018.Paulson's capital account is settled at book value.Which of the following journal entries would the firm record for Paulson's withdrawal?

(Multiple Choice)

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Question 23

Which of the following is TRUE when a partner withdraws his interest from the partnership?

(Multiple Choice)

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Question 24

In which of the following ways does a limited partnership differ from a general partnership?

(Multiple Choice)

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Question 25

Floyd and Merriam start a partnership business on June 12,2019.Their capital account balances as of December 31,2020 stood as follows: Floyd \ 55,000 Merriam 17,000 They agreed to admit Ramelow into the business for a one-third interest in the new partnership.Ramelow contributes $24,000 cash in exchange for the partnership interest.Floyd and Merriam share profits and losses equally before the admission of Ramelow.What is the correct capital account balance of Ramelow after he enters the business? (Do not round intermediate calculations.Round the final answer to the nearest dollar.)

(Multiple Choice)

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Question 26

Lauren and Elizabeth are partners.Lauren has a capital balance of $125,000 and Elizabeth has a capital balance of $110,000.Harry invested $100,000 to acquire an ownership interest of 30%.The journal entry to record the receipt of Harry's contribution will ________.

(Multiple Choice)

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Question 27

When a new partner is admitted to a partnership by purchasing an existing partner's interest,the business's accounting records do not record the transfer of cash from the new partner to the existing partner.

(True/False)

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Question 28

Capital deficiency occurs when a partner's capital account has a credit balance.

(True/False)

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Question 29

Edwin and Darren have decided to form a partnership.Edwin contributes $80,000 cash and merchandise inventory with a current market value of $17,000.Darren contributes $2400 cash and office furniture with a current market value of $3200.When journalizing these transactions ________.

(Multiple Choice)

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Question 30

If the partnership agreement specifies a method for sharing profits but not losses,then losses are shared the same way as profits.

(True/False)

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Question 31

The income of a limited liability company cannot be taxed to the members as though they were partners.

(True/False)

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Question 32

Farrell and Jimmy enter into a partnership agreement on May 1,2018.Farrell contributes $30,000 and Jimmy contributes $140,000 as their capital contributions.They decide to share profits and losses in the ratio of their respective capital account balances.The net income for the year ended December 31,2018 is $40,000.Which of the following amounts should be credited to Jimmy's capital account? (Do not round any intermediate calculations.Round your final answers to the nearest dollar.)

(Multiple Choice)

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Question 33

The balance sheet of Ryan and Peter's partnership as of December 31,2018,is given below. Assets Liabilities Cash \ 15,000 Accounts Payable \ 15,000 Accounts Receivable 12,000 Other liabilities 25,000 Furniture 25,000 Partners' Equity Equipment 36,000 Ryan, Capital 26,000 Other assets Peter, Capital Total assets \ 96,000 Total liabilities and partners' equity Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership.After completing all the liquidation procedures (assuming all assets and liabilities were liquidated at book value),the business is left with $56,000 cash.As a result,Ryan will receive ________.

(Multiple Choice)

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Question 34

In a partnership,a person can become a partner by purchasing an existing partner's interest.

(True/False)

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Question 35

The financial statements of a partnership are similar to the statements of a sole proprietorship.

(True/False)

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Question 36

Jack holds an ownership interest of 63% and Teresa holds an ownership interest of 37% in the J and T Partnership.This year,in order to further develop the business,Jack contributes an additional $6800 and Teresa contributes an additional $3200 to the partnership.Which of the following is TRUE of this scenario?

(Multiple Choice)

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Question 37

The sum (or total)of the net income (loss)allocated to each partner should always equal the total net income (loss)of the partnership.

(True/False)

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Question 38

When a partner sells his interest to another party,the journal entry simply credits the withdrawing partner's capital account and debits the new partner's capital.

(True/False)

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Question 39

Which of the following is TRUE of ownership changes in a partnership?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 171

In which of the following types of business organizations do the owners have unlimited personal liabilities for the business's debts?

Which of the following is TRUE when a partner withdraws his interest from the partnership?

In which of the following ways does a limited partnership differ from a general partnership?

Lauren and Elizabeth are partners.Lauren has a capital balance of $125,000 and Elizabeth has a capital balance of $110,000.Harry invested $100,000 to acquire an ownership interest of 30%.The journal entry to record the receipt of Harry's contribution will ________.

When a new partner is admitted to a partnership by purchasing an existing partner's interest,the business's accounting records do not record the transfer of cash from the new partner to the existing partner.

Capital deficiency occurs when a partner's capital account has a credit balance.

Edwin and Darren have decided to form a partnership.Edwin contributes $80,000 cash and merchandise inventory with a current market value of $17,000.Darren contributes $2400 cash and office furniture with a current market value of $3200.When journalizing these transactions ________.

If the partnership agreement specifies a method for sharing profits but not losses,then losses are shared the same way as profits.

The income of a limited liability company cannot be taxed to the members as though they were partners.

In a partnership,a person can become a partner by purchasing an existing partner's interest.

The financial statements of a partnership are similar to the statements of a sole proprietorship.

The sum (or total)of the net income (loss)allocated to each partner should always equal the total net income (loss)of the partnership.

When a partner sells his interest to another party,the journal entry simply credits the withdrawing partner's capital account and debits the new partner's capital.

Which of the following is TRUE of ownership changes in a partnership?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets,natural Resources,and Intangibles

Current Liabilities and Payroll

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

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