Question 1

Match each statement to the appropriate term (a-h) .
-A voluntary association of two or more persons who co-own a business for profit

Accepted Answer

A)  Partnership
B)  Partnership agreement
C)  Distribution of remaining cash to partners
D)  Mutual agency
E)  EquallyF) Death of a partnerG) LiquidationH) Unlimited liabilityI) B) and E)
J) B) and C)

Question 2

Watson purchased one-half of Dalton's interest in the Patton and Dalton Partnership for $45,000. Prior to the investment, land was revalued to a market value of $135,000 from a book value of $93,000. Patton and Dalton share net income equally. Dalton had a capital balance of $35,000 prior to these transactions.​Required
(a) Provide the journal entry for the revaluation of land.
(b) Provide the journal entry to admit Watson.

Accepted Answer

The answer of Watson purchased one-half of Dalton's interest in...

Question 3

In the distribution of income, the net income is less than the salary and interest allowances granted; the remaining balance will be a negative amount that must be divided among the partners as though it were a loss.

Accepted Answer

A) True 
 B)False

Question 4

When a new partner is admitted by making an investment of assets in the partnership and the new partner has to pay a premium for admission, a bonus is divided among the old partners' capital accounts.

Accepted Answer

A) True 
 B)False

Question 5

Benson and Orton are partners who share income in the ratio of 1:3 and have capital balances of $70,000 and $30,000, respectively. Ramsey is admitted to the partnership and is given a 40% interest by investing $20,000. What is Orton's capital balance after admitting Ramsey?

Accepted Answer

A)   $20,000
B)   $9,000
C)   $70,000
D)   $63,000E) B) and C)
F) None of the above

Exam 12: Accounting for Partnerships and Limited Liability Companies

In the distribution of income, the net income is less than the salary and interest allowances granted; the remaining balance will be a negative amount that must be divided among the partners as though it were a loss.

Correct Answer
verified

Match each statement to the appropriate term (a-h) . -A voluntary association of two or more persons who co-own a business for profit

Correct Answer
verified

Correct Answer
verified

When a new partner is admitted by making an investment of assets in the partnership and the new partner has to pay a premium for admission, a bonus is divided among the old partners' capital accounts.

Correct Answer
verified

Benson and Orton are partners who share income in the ratio of 1:3 and have capital balances of $70,000 and $30,000, respectively. Ramsey is admitted to the partnership and is given a 40% interest by investing $20,000. What is Orton's capital balance after admitting Ramsey?

Correct Answer
verified

Exam 12: Accounting for Partnerships and Limited Liability Companies

In the distribution of income, the net income is less than the salary and interest allowances granted; the remaining balance will be a negative amount that must be divided among the partners as though it were a loss.

Correct AnswerverifiedShow Answer

Match each statement to the appropriate term (a-h) . -A voluntary association of two or more persons who co-own a business for profit

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When a new partner is admitted by making an investment of assets in the partnership and the new partner has to pay a premium for admission, a bonus is divided among the old partners' capital accounts.

Correct AnswerverifiedShow Answer

Benson and Orton are partners who share income in the ratio of 1:3 and have capital balances of $70,000 and $30,000, respectively. Ramsey is admitted to the partnership and is given a 40% interest by investing $20,000. What is Orton's capital balance after admitting Ramsey?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified