FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Accounting for Partnerships and Limited Liability Companies

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

Carla and Eliza share income equally.For the current year,the partnership net income is $40,000.Carla made withdrawals of $12,000,and Eliza made withdrawals of $21,000.At the beginning of the year,the capital account balances were: Carla,Capital,$42,000; Eliza,Capital,$55,000.Eliza's capital account balance at the end of the year is

A) $34,000
B) $54,000
C) $78,000
D) $75,000

E) All of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

Use the information below to answer the questions that follow. ​ The capital accounts of Harrison and Marti have balances of $160,000 and $110,000, respectively, on January 1, the beginning of the current fiscal year. On April 10, Harrison invested an additional $20,000. During the year, Harrison and Marti withdrew $96,000 and $78,000, respectively, and net income for the year was $264,000. The articles of partnership make no reference to the division of net income.​ -Based on this information,the statement of partners' equity would show what amount in the capital account for Harrison on December 31?

A) $216,000
B) $164,000
C) $380,000
D) $52,000

E) B) and D)
F) C) and D)

Correct Answer

verified

Show Answer

Question 63

True/False

Review LaterAdd Note

If not enough partnership cash or other assets are available to pay the withdrawing partner,a liability may be created for the amount owed the withdrawing partner.

Singer and McMann are partners in a business.Singer's original capital was $40,000 and McMann's was $60,000.They agree to salaries of $12,000 and $18,000 for Singer and McMann,respectively,and 10% interest on original capital.If they agree to share the remaining profits and losses on a 3:2 ratio,what will McMann's share of the income be if the income for the year is $30,000?

Use the information below to answer the questions that follow. ​ The capital accounts of Harrison and Marti have balances of $160,000 and $110,000, respectively, on January 1, the beginning of the current fiscal year. On April 10, Harrison invested an additional $20,000. During the year, Harrison and Marti withdrew $96,000 and $78,000, respectively, and net income for the year was $264,000. The articles of partnership make no reference to the division of net income.​ -Based on this information,the statement of partners' equity would show what amount in the capital account for Martin on December 31?

After discontinuing the ordinary business operations and closing the accounts on May 7,the ledger of the partnership of Anna,Brian,and Cole indicated the following:​ The partners share net income and losses in the ratio of 3:2:1.Between May 7 and May 30,the noncash assets were sold for $150,000,the liabilities were paid,and the remaining cash was distributed to the partners.​

Partners Ken and Macki each have a $40,000 capital balance and share income and losses in the ratio of 3:2.Cash equals $20,000,noncash assets equal $120,000,and liabilities equal $60,000.If the noncash assets are sold for $80,000,Macki's capital account will

Which of the following is a characteristic of a general partnership?

Rex and Kelsey are partners who share income in the ratio of 3:2.Their capital balances are $95,000 and $140,000,respectively,on January 1.The partnership generated net income of $40,000 for the year.What is Rex's capital balance after closing the revenue and expense accounts to the capital accounts?

Hamir,Darci,and Pete are partners sharing income in the ratio of 3:2:1.After the firm's loss from liquidation is distributed,the capital account balances were Hamir,$45,000 Dr.; Darci,$90,000 Cr.,and Pete,$64,000 Cr.If Hamir is personally bankrupt and unable to pay any of the $45,000,what will be the amount of cash received by Darci and Pete upon liquidation? Show your work.

As part of the initial investment,Ray Blake contributes equipment that had originally cost $125,000 and on which accumulated depreciation of $100,000 has been recorded.If similar equipment would cost $150,000 to replace and the partners agree on a valuation of $29,000 for the contributed equipment,what amount should be debited to the equipment account?

The capital accounts of Hope and Indiana have balances of $115,000 and $95,000,respectively.Clint and Casey are to be admitted to the partnership.Clint buys one-fifth of Hope's interest for $30,000 and one-fourth of Indiana's interest for $20,000.Casey contributes $45,000 cash to the partnership,for which he is to receive an ownership equity of $45,000.​Required (1) Journalize the entries to record the admission of (a)Clint and (b)Casey. (2) What are the capital balances of each partner after the admission of the new partners?​

Paul and Roger are partners who share income in the ratio of 3:2.Their capital balances are $90,000 and $130,000,respectively.The partnership generated net income of $50,000 for the year.What is Roger's capital balance after closing the revenue and expense accounts to the capital accounts?

Match each statement to the appropriate term (a-h) . -The process of going out of business by selling the entity's assets and paying its liabilities

If a partner's capital balance is a debit after it has absorbed its share of the loss on realization,the balance is referred to as a deficiency.

Sharp and Townson had capital balances of $60,000 and $120,000,respectively,on January 1 of the current year.On May 8,Sharp invested an additional $10,000 in the partnership.During the year,Sharp and Townson withdrew $25,000 and $45,000,respectively.The revenue account at the end of the year had a balance of $600,000,and the expense account had a balance of $510,000.Sharp and Townson have agreed to split net income on a 2:1 basis.​

When a new partner is admitted to a partnership,there should be a (n)

One reason that distributions of income and loss are prepared is to obtain the information to record a closing entry.

Wonder purchased one-half of Darwin's interest in the Todd and Darwin Partnership for $50,000.Prior to the investment,land was revalued to a market value of $175,000 from a book value of $100,000.Todd and Darwin share net income equally.Darwin had a capital balance of $40,000 prior to these transactions.​Required (a)Provide the journal entry for the revaluation of land. (b)Provide the journal entry to admit Wonder.

The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash,$20,000; other assets,$160,000; liabilities,$40,000; Morgan,capital,$60,000; Rockwell,capital,$80,000.The other assets were sold for $139,000.Morgan and Rockwell share profits and losses in a 2:1 ratio.As a final cash distribution from the liquidation,Morgan will receive cash totaling