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Stack #2525341
| Question | Answer |
|---|---|
| In a 2:#:% Partnership is being liquidated by selling non cash assets 750,000. Cindi Capital, 120,000, Jennu Capital 180,000, Becki 60,000. Non cash assets in total 570,000. What is the total amount of cash that Cindi will receive in the distribution? | 156,000. Sold non assets for 750,000,All 3 partners total capital is 360,000=390,000 divided by their ratio 2:3:5 , Cindi will get 156,000 |
| In a partnership, mutual agency means: | An act by a partner is judged as biding on other partners depending on whether the act appears to be appropriate for the partnership. |
| The individual assets invested by a partner in a partnership : | Are jointly owned by all partners. |
| Which of the following is not a principal characteristic of the partnership form of business organization? | Limited liability. |
| A general partner in a partnership : | Has unlimited liability for all partnership debts. |
| Horton invest personally owned equipment, cost 145,000 and has accumulated depreciation of 43,000 in the HK partnership. The fair market value of t equipment is 58,0000. The entry made by the partnership to record H investment should be: | Debit Equipment 145,000 credit Accumulated depreciation-equipment 43,500 credit Horton capital $101,500. |
| In liquidation, balances prior | 15,000 in a 6:2:2 is 9000,3000,3000. Hunter deficiency is 3000 divided remaining 8 (6+2) 750 +3000= 3775 from 130,000 leaving a capital of 126,250. |
| On Nov. 30 capital balances are Howe 90,000, Doss 75,000 and Newlin 75,000. Income ratio 20:20:60. Howe decides to retire from the partnership. The partnership pays Howe 105,000 cash for her partnership interest. What is the balance of Doss capital acct. | 71,250 |
| If a partnership agreement specifies salaries to partners, interest on partners' capital, and the remainder on a fixed ratio, and partnership net income is not sufficient to cover both salaries and interest, | Both salaries and interest are allocated to the partners. |
| In the liquidation of a partnership, any gain or loss on the realization of non-cash assets should be allocated: | to the partners on the basis of their income-sharing ratio. |
| A bonus to a new partner : | Results when the new partner capital credit is greater than his or her investment of assets in the firm. |
| The first step on the liquidation of a partnership is to : | sell non cash assets and recognize a gain or loss on realization. |
| Mock is admitted to a partnership with a 25% capital interest by a cash investment of 106,000. If total capital of the partnership is 560,000 before admitting Mock, the bonus to Mock is: | 60,500. 560,000+106,000= 666,000. 666,000x25%= 166,500-106,000=60,500 |
| Partner Acer and Bar have capital balances in a partnership of 40,000 and 60,000 respectively. They agree to share profits and losses as follows. If the loss for the year was 2000, what will be the distribution to Barr? | 1000 income |
| Partner Don and Ron have agreed to share profits and losses in a 80:20 ratio, after Don is allowed a salary allowance of 40,000. If the partnership had a net income of 80,000 for 2010, Ron's share of the income would be: | 32,000 Ron's 40,000 x 20%=8,000. 40,000-8000=32,000 |
| Which of the following is not a characteristic of a partnership? | Taxable entity. A partnership is not a taxable entity. |
| A partnership agreement should include each of the following except: | Basis for splitting partnership income taxes. A partnership is not a taxable entity, therefore the partnership agreement should not include the basis for splitting partnership income taxes. |
| The advantages of a partnership do not include: | Unlimited liability. its a diadvantage. |
| Upon formation of a partnership, each partner initial investment of assets should be recorded at their: | Fair values. |
| B & S formed a partnership. B contributed 8,000 cash and a used truck that originally cost 35,000 with accumulated depreciation of 15,000. The truck fair value was 16,000. S contributed a new storage with a cost of 40,000. | 79,000 8,000 cash and truck fair value of 16,000= 24,000 B garage fair value of 55,000 totaling 79,000 |
| the garage has a fair value of 55,000. What is the combined total capital that would be recorded on the partnership books for the 2 partners? | |
| The NBC company reports net income of 60,000. If partners N Band C have an ratio of 50:30:20. C share of the net income is: | 12,000. Net income 60,000 x 20%= 12,000 |
| Using the same data, what is B sahres of net income if the % are applicable after each partner receives a 10,000 salary allowance. | 19,000. After allocating the salary allowance to each partner,30,000 will be available to divide according to the income ratio(60,000-(10,000x3). Partner B share of the remainder is 9000(30000x30%)Partner b total share of income is equal to $19,000 |
| To close a partner drawing account, and entry must be made that: | credits that partner's drawing accounts and debits that partners capital account. |
| which of the following statement about partnership financials statements is true? | The owner equity statement is called the partner capital statement. |
| In the liquidation of a partnership, its necessary to : | Sell non-cash assets, allocate gain/losses,pay partnership liabilities and distribute remaining cash. |
| Non Asses22,000+73,000=95,000. Income ratio 2:4:4. Harriet capital, 23000, Mike capital 8,000 and Elly capital 52,000. Part of liquidation preceding, it sells all non cash assets for 85,000. The amount of cash that would ultimately be distributed to Elly: | 48,000. Non-cash is 95,000-85,000 liquidation with 10,000 loss on the sale. Elly is 40%=4000. Capital is 52,000-4000=48,000 |
| Assume it sells for 60,000, one partner has capital deficiency and does not repay. The amount of cash that would ultimately be distributed to Elly would be: | 34,000. Non-cash 95,000-60,000=35,000 x 40%=14,000. Elly has 52,000-14,000-4000=34,000 |
| Louisa Santiago purchases 50% of Leo Capital interest in the KL partnership for 22,000. If the capital balance of K and Leo are 40,000 and 30,000, Santiago capital balance following purchase is: | 15,000 (Leo was 30,000) |
| Capital balances in the MEM partnership are M. capital 60,000; E. capital 50,000: and Mills capital 40,000. and 5:3:2: ratio. The MEMO partnership is formed by admitting Oleg to the firm 60,000 for 25% capital interest. The bonus to be credited to Mills, | 1,500. 60,000+50,000+40,000+60,000=210,000. Oleg share is 52,500 (210,000x25%) 7,500x25%=1,500 |
| Capital balances in the M Partnership are M capital 50,000, U CAPITAL 40,000, R 30,000, AND F 20,000 AND INCOME RATIO OF 4:3:2:1. F withdraw29,000 in cash from the partnership. U balance after F withdrawal if F is? | 37,000 ?total bonus to fred from the partnership is 9,000(29,000-20,000) because Fred had withdrawn, the imcome ratio must be restated as 4:3:2:, U share othe bonus paid to Fred is 3,000(9000*(3/(4+3+ because the bonus is being paid to Fred. |
| Admission by investment | Admission of a partner by investing assets in the partnership, causing both partnership net assets and total capital to increase. |
| Admission by purchase of an interest: | Admission of a partner in a personal transaction between one or more existing partners and the new partner, does not change total partnership assets or total capital. |
| Capital Deficiency | A debit balance in a partner capital account after allocation of gain or losses. |
| General partner | partners who have unlimmited liabilility for the debts of the firm. |
| Income ratio | the basis of dividing net income and net loss in a partnership. |
| Limited liability company | a form of business organization usually classified as a partnership for tax purposes and usually with limited life in which partners who are called members, have limited liabilities. |
| Limited liability partnership; | A partnership of professionals in which partners are given limited liability and public is protected from malpractice by insurance carried by the partnership. |
| limited partners. | Partners whose liabilities for the debt of the firm is limited to their invesmtment in the firm. |
| Limited partnership | a partnership inwhich one or more general partners have limited liability for the obligation of the firm. |
| No capital defiency | all partners have credit balances after allocation of gain or loss. |
| Partner capital statement | the owners equity statement for a partnership which shows the changes in each partner capital account and in the total partnership capital during the year. |
| Partnership | an association of 2 or more persons to carry on as coowner if a business for a profit. |
| Partnership agreement | a written contract expressing the voluntary agreement of 2 or more individuals in a partnership. |
| Partnership dissolution | a change in partners due to withdrawal or admission, which does not terminate the business. |
| partnership liquidation | an event that ends both the legal and economic life or partnership. |
| Schedule of cash payment | A schedule showing the distribution of cash to the partners in a partnership liquidation. |
| Withdrawal by payment from partners personal assets. | Withdraws of a partner on a personal translocation between parents , does not change total partnership or capital. |
| Withdrawal by payment from partnership. | Withdrawal of a partner in a transaction involving tyhe partnership causing both partnership net assets and total capital to decrease. |
Created by:
Syl593