The balance sheet of Ryan and Peter's partnership as of December 31,2018,is given below. $\begin{array}{|l|c|l|c|} \hline \text { Assets } & & \underline{\text { Liabilities }} & \\ \hline \text { Cash } & \$ 54,201 & \text { Accounts Payable } & \$ 12,000 \\ \hline \text { Accounts Receivable } & 11,000 & \text { Other liabilities } & 69,201 \\ \hline \text { Furniture } & 23,000 & \text { Partners' Equity } & \\ \hline \text { Equipment } & 38,000 & \text { Ryan, Capital } & 27,000 \\ \hline \text { Other assets } & 9000 & \text { Peter, Capital } & \underline{27,000} \\ \hline \text { Total assets } & \$ 135,201 & \text { Total liabilities and partners' equity } & \$ 135,2 \\ \hline \end{array}$ Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership.The furniture And the equipment were sold at a cumulative loss of $4000.The accounts receivable were collected in full and the other assets were written off as worthless.The accounts payable and other liabilities were paid off at book value.The firm's accountant distributed the remaining cash between Ryan and Peter equally.However,Peter initiated a lawsuit claiming that his share was greater than Ryan's.How much should Peter have received?

A) $20,500 B) $19,200 C) $21,800 D) $23,200 A) $20,500 B) $19,200 C) $21,800 D) $23,200

A partnership has the following balance sheet at December 31,2018.Blair and Smith share profits 50:50. $\begin{array}{|l|l|l|r} \hline \text { Cash } & \$ 9,000 & \text { Accounts Payable } & \$ 50,000 \\ \hline \text { Land } & \underline{120,000} &\text { Blair, Capital } & 45,000 \\ \hline \text { Total Assets } & \$ 129,000 & \text { Smith, Capital } & \underline{34,000} \\ \hline && \text { Total Liabilities and Partners' Equity } & \$ 129,000 \\ \hline \end{array}$ The partnership liquidates and sells its land for $100,000.All liabilities are liquidated at book value. Required: Prepare the journal entries to liquidate the partnership on December 31,2018.

\[\begin{array} { | l | r | r | } \hlin

Exam 12: Partnerships

Floyd and Merriam start a partnership business on June 12,2019.Their capital account balances as of December 31,2020 stood as follows: Floyd \ 51,000 Merriam 19,000 Floyd and Merriam share profits and losses equally.They agreed to dissolve the partnership and start a new one,admitting Ramelow for one-half share in the capital in exchange for land with a market value of $66,000.Which of the following is the correct journal entry to record the introduction of Ramelow as a partner?

(Multiple Choice)

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Question 121

Shaun and Rick are partners.Shaun has a capital balance of $12,000 and Rick has a capital balance of $10,000.Edwin contributes a building with a current market value of $8000 to acquire an interest in the new partnership.Which of the following is TRUE of the effect of the transaction on the balance sheet? (Assume no bonus to any partner.)

(Multiple Choice)

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Question 122

The balance sheet of Ryan and Peter's partnership as of December 31,2018,is given below. Assets Cash \ 54,201 Accounts Payable \ 12,000 Accounts Receivable 11,000 Other liabilities 69,201 Furniture 23,000 Partners' Equity Equipment 38,000 Ryan, Capital 27,000 Other assets 9000 Peter, Capital Total assets \ 135,201 Total liabilities and partners' equity \ 135,2 Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership.The furniture And the equipment were sold at a cumulative loss of $4000.The accounts receivable were collected in full and the other assets were written off as worthless.The accounts payable and other liabilities were paid off at book value.The firm's accountant distributed the remaining cash between Ryan and Peter equally.However,Peter initiated a lawsuit claiming that his share was greater than Ryan's.How much should Peter have received?

(Multiple Choice)

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Question 123

In a general partnership,if one partner cannot pay his or her part of the debts,the other partner or partners must pay with their personal assets.

(True/False)

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Question 124

If elected,an S corporation pays no corporate income tax.

(True/False)

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Question 125

In a partnership,the entry to close net loss ________.

(Multiple Choice)

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Question 126

Which of the following is an advantage of a limited liability company compared to a corporation?

(Multiple Choice)

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Question 127

Steve owns 64% and Mark owns 36% of a partnership business.They purchase equipment with a suggested value of $9600.The current market value of the equipment at the time of purchase was $9100.At the time of the balance sheet preparation,depreciation of $160 was recorded.Based on the information provided,which of the following is TRUE of the partnership?

(Multiple Choice)

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Question 128

In the process of liquidation,a partnership firm sells its non-cash assets with a book value of $55,000,for $73,000.Which of the following will be included in the entry to record the sale of assets at liquidation?

(Multiple Choice)

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Question 129

Lori and Peter enter into a partnership and decide to share profits and losses as follows: 1.The first allocation is a salary allowance with Lori receiving $16,000 and Peter receiving $18,000. 2)The second allocation is 15% of the partners' capital balances at year end.On December 31,2019,the capital balances for Lori and Peter are $90,000 and $20,000,respectively. 3)Any remaining profit or loss is allocated equally. For the year ending December 31,2019,the partnership reported net income of $55,000.What is Lori's share of the net income?

(Multiple Choice)

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Question 130

Which of the following is TRUE of a partnership?

(Multiple Choice)

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Question 131

Which of the following types of business organizations pay business income taxes?

(Multiple Choice)

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Question 132

A written partnership agreement is also known as the articles of partnership.

(True/False)

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Question 133

Upon liquidation of a partnership,the cash received from the sale of assets is first returned to the capital balances of the partners.The remaining cash is then used to pay off the liabilities of the business.

(True/False)

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Question 134

Albert,Billy,and Cathy share profits and losses of their partnership as 1:4:3,respectively.If the net income is $30,000,calculate Albert's share of the profits.(Do not round any intermediate calculations.)

(Multiple Choice)

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Question 135

Which of the following is TRUE of limited partners in a limited partnership?

(Multiple Choice)

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Question 136

Alex,Brad,and Carl are partners.The profit sharing rule between them is 4:3:2 in alphabetical order.The partnership incurs a net loss of $120,000.The journal entry to close Income Summary will include a ________.(Do not round any intermediate calculations.)

(Multiple Choice)

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Question 137

A partnership has the following balance sheet at December 31,2018.Blair and Smith share profits 50:50. Cash \ 9,000 Accounts Payable \ 50,000 Land Blair, Capital 45,000 Total Assets \ 129,000 Smith, Capital Total Liabilities and Partners' Equity \ 129,000 The partnership liquidates and sells its land for $100,000.All liabilities are liquidated at book value. Required: Prepare the journal entries to liquidate the partnership on December 31,2018.

(Essay)

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Question 138

In a partnership,the income is taxed at the partnership level as well as at the personal level of the owners.

(True/False)

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Question 139

A(n)________ must carry large insurance policies to protect the public in case the partnership is found guilty of malpractice.

(Multiple Choice)

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Question 140

Showing 121 - 140 of 171

In a general partnership,if one partner cannot pay his or her part of the debts,the other partner or partners must pay with their personal assets.

If elected,an S corporation pays no corporate income tax.

In a partnership,the entry to close net loss ________.

Which of the following is an advantage of a limited liability company compared to a corporation?

In the process of liquidation,a partnership firm sells its non-cash assets with a book value of $55,000,for $73,000.Which of the following will be included in the entry to record the sale of assets at liquidation?

Which of the following is TRUE of a partnership?

Which of the following types of business organizations pay business income taxes?

A written partnership agreement is also known as the articles of partnership.

Upon liquidation of a partnership,the cash received from the sale of assets is first returned to the capital balances of the partners.The remaining cash is then used to pay off the liabilities of the business.

Albert,Billy,and Cathy share profits and losses of their partnership as 1:4:3,respectively.If the net income is $30,000,calculate Albert's share of the profits.(Do not round any intermediate calculations.)

Which of the following is TRUE of limited partners in a limited partnership?

Alex,Brad,and Carl are partners.The profit sharing rule between them is 4:3:2 in alphabetical order.The partnership incurs a net loss of $120,000.The journal entry to close Income Summary will include a ________.(Do not round any intermediate calculations.)

In a partnership,the income is taxed at the partnership level as well as at the personal level of the owners.

A(n)________ must carry large insurance policies to protect the public in case the partnership is found guilty of malpractice.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

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Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets,natural Resources,and Intangibles

Current Liabilities and Payroll

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The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

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Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

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