Question 1

A _____________________ is an unincorporated association of two or more people to pursue a business for profit as co-owners.

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Question 2

Marquis and Bose agree to accept Sherman into their partnership.Sherman will contribute $25,000 in cash.Prepare the journal entry to record this transaction.

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Question 3

A partnership that has at least two classes of partners,general and limited,that allows the limited partners to have no personal liability beyond the amounts they invest in the partnership and the limited partners have no active role except as specified in the partnership agreement is a ________________________ partnership.

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Question 4

___________________________ implies that each partner in a partnership can be called on to pay a partnership's debts.

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Question 5

Partners in a partnership are taxed on _______________________,not on their withdrawals.

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Question 6

The life of a partnership is ____________________ in duration.

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Question 7

Armstrong plans to leave the FAP Partnership.The recorded balance in her capital account is $48,000.The remaining partners,Peters and Floyd,agree to pay Armstrong $58,000 cash.The partners have agreed to share income and loss equally.Prepare the journal entry to record the transaction.

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The answer of Armstrong plans to leave the FAP Partnership.The...

Question 8

Armstrong withdraws from the FAP Partnership.The remaining partners agree to buy out her share for her capital balance of $35,000.Prepare the journal entry to record the withdrawal from the partnership.

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The answer of Armstrong withdraws from the FAP Partnership.The remaining...

Question 9

Armstrong plans to leave the FAP Partnership.The recorded value of her capital account is $48,000.The remaining partners Floyd and Peters agree to pay Armstrong $40,000 cash.The partners have agreed to share income and loss equally.Prepare the general journal entry to record the withdrawal from the partnership.

Accepted Answer

The answer of Armstrong plans to leave the FAP Partnership.The...

Question 10

Alberts and Bartel are partners.On October 1,Alberts' capital balance is $75,000 and Bartel's capital balance is $125,000.With the partnership's approval,Bartel sells ½ of his partnership interest to Camero for $70,000.Prepare the journal entry to record this transaction in the partnership records.

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Question 11

Beard,Tanner,Williams are operating as a partnership.The capital account balances at December 31,2010 are $254,000,$195,000 and $286,000 respectively.Record the entries for the following independent situations.
A.The partners vote to admit Sturges.She is going to invest $150,000 for a 15% interest in the partnership.Profit and losses are split equally between the existing partners.
B.Sturges agrees to buy 50% of Williams interest by paying him $150,000 directly.
C.The partners need new ideas and agree to give Sturges a 20% interest in exchange for $150,000.Profits and losses are shared equally between the existing partners.
D.Williams wants to retire and is willing to leave the partnership in exchange for $281,000.Profits and losses were shared on the ratio of 2:3:5.

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The answer of Beard,Tanner,Williams are operating as a partnership.The capital...

Question 12

A partnership designed to protect innocent partners from malpractice or negligence claims resulting from the acts of other partners is a ____________________________ partnership.

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Question 13

___________________________ means that partners can commit or bind the partnership to any contract within the scope of the partnership business.

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Question 14

Partner return on equity is calculated as ______________________________.

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Question 15

Conley and Liu allow Lepley to purchase a 25% interest in their partnership for $35,000 cash.Lepley has exceptional talents that will enhance the partnership.Conley's and Liu's capital account balances are $55,000 each.The partners have agreed to share income or loss equally.Prepare the general journal entry to record the admission of Lepley to the partnership.

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Question 16

The BlueFin Partnership agreed to dissolve.The remaining cash balance after liquidating partnership assets and liabilities is $60,000.The final capital account balances are: Smith,$30,000; Nagy,$20,000; and Russ,$10,000.Prepare the journal entry to distribute the remaining cash to the partners.

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The answer of The BlueFin Partnership agreed to dissolve.The remaining...

Question 17

Conley and Liu allow Lepley to purchase a 25% interest in their partnership for $50,000 cash.Conley and Liu both have capital balances of $55,000 each and have agreed to share income and loss equally.Prepare the journal entry to record the admission of Lepley to the partnership.

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Question 18

The BlueFin Partnership agrees to dissolve.The cash balance after selling all assets and paying all liabilities is $60,000.The final capital account balances are: Smith,$35,000; Nagy,$29,000; and Russ, ($4,000).Russ is unable to pay the capital deficiency.Prepare the journal entries to record the transactions required to dissolve this partnership.

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The answer of The BlueFin Partnership agrees to dissolve.The cash...

Question 19

A relatively new form of business organization that protects partners with limited liability,allows limited partners to assume an active management role and is taxed as a partnership is a ______________________________.

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The answer of A relatively new form of business organization...

Question 20

A partner can be admitted into a partnership by ________________________ or by ______________________________.

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The answer of A partner can be admitted into a...

Quiz 15: Reporting and Analyzing Partnerships