Question 1

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 2

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 3

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) None of the above
F) B) and C)

Question 4

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) A) and G)
J) D) and G)

Question 5

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

Exam 12: Accounting for Partnerships and Limited Liability Companies

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
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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

Correct Answer
verified

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

Exam 12: Accounting for Partnerships and Limited Liability Companies

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 AnswerverifiedShow Answer

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 Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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