49.
Partners’ withdrawals of assets are:
50.
The withdrawals account of each partner is:
51.
R. Stetson contributed $14,000 in cash plus office equipment valued at $7,000 to the SJ
Partnership. The journal entry to record the transaction for the partnership is:
52.
T. Andrews contributed $14,000 to the T & B Partnership. The journal entry to record the
transaction for the partnership is:
53.
Forman and Berry are forming a partnership. Forman will invest a building that currently is
being used by another business owned by Forman. The building has a market value of
$80,000. Also, the partnership will assume responsibility for a $20,000 note secured by a
mortgage on that building. Berry will invest $50,000 cash. For the partnership, the amounts
to be recorded for the building and for Forman’s Capital account are:
54.
Maxwell and Smart are forming a partnership. Maxwell is investing a building that has a
market value of $180,000. However, the building carries a $56,000 mortgage that will be
assumed by the partnership. Smart is investing $120,000 cash. The balance of Maxwell’s
Capital account will be:
55.
Harvey and Quick have decided to form a partnership. Harvey is going to contribute a
depreciable asset to the partnership as his equity contribution to the partnership. The
following information regarding the asset to be contributed by Harvey is available:
Historical cost of the asset
$76,000
Accumulated depreciation on the asset
$40,000
Note payable secured by the asset*
$18,000
Agreed-upon market value of the asset
$45,000
*will be assumed by the partnership
Based on this information, Harvey’s beginning equity balance in the partnership will be:
56.
Dalworth and Minor have decided to form a partnership. Minor is going to contribute a
depreciable asset to the partnership as her equity contribution to the partnership. The
following information regarding the asset to be contributed by Minor is available:
Historical cost of the asset
$276,000
Accumulated depreciation on the asset
$140,000
Note payable secured by the asset and
assumed by the partnership
$118,000
Agreed-upon market value of the asset
$245,000
Based on this information, Minor’s beginning equity balance in the partnership will be:
57.
In the absence of a partnership agreement, the law says that income (and loss) should be
allocated based on:
58.
In a partnership agreement, if the partners agreed to an interest allowance of 10%
annually on each partner’s investment, the interest allowance:
59.
Wheadon, Davis, and Singer formed a partnership with Wheadon contributing $60,000,
Davis contributing $50,000 and Singer contributing $40,000. Their partnership agreement
called for the income (loss) division to be based on the ratio of capital investments. If the
partnership had income of $75,000 for its first year of operation, what amount of income
(rounded to the nearest thousand) would be credited to Singer’s capital account?
60.
Wheadon, Davis, and Singer formed a partnership with Wheadon contributing $60,000,
Davis contributing $50,000 and Singer contributing $40,000. Their partnership agreement
called for the income (loss) division to be based on the ratio of capital investments. If the
partnership had income of $75,000 for its first year of operation, what amount of income
(rounded to the nearest thousand) would be credited to Wheadon’s capital account?
61.
Christie and Jergens formed a partnership with capital contributions of $300,000 and
$400,000, respectively. Their partnership agreement calls for Christie to receive a $60,000
per year salary. Also, each partner is to receive an interest allowance equal to 10% of a
partner’s beginning capital investments. The remaining income or loss is to be divided
equally. If the net income for the current year is $135,000, then Christie and Jergens’s
respective shares are:
62.
Farmer and Taylor formed a partnership with capital contributions of $200,000 and
$250,000, respectively. Their partnership agreement calls for Farmer to receive a $70,000
per year salary. The remaining income or loss is to be divided equally. If the net income for
the current year is $135,000, then Farmer and Taylor’s respective shares are:
63.
Which of the following statements is true?
64.
Zheng invested $100,000 and Murray invested $200,000 in a partnership. They agreed to
share incomes and losses by allowing a $60,000 per year salary allowance to Zheng and a
$40,000 per year salary allowance to Murray, plus an interest allowance on the partners’
beginning-year capital investments at 10%, with the balance to be shared equally. Under
65.
Brown invested $200,000 and Freeman invested $150,000 in a partnership. They agreed to
an interest allowance on the partners’ beginning-year capital investments at 10%, with the
balance to be shared equally. Under this agreement, the shares of the partners when the
partnership earns $205,000 in income are:
66.
The partnership agreement for Wilson, Pickett & Nelson, a general partnership, provided
67.
Olivia Greer is a partner in Made for You. An analysis of Greer’s capital account indicates
68.
The following information is available on TGR Enterprises, a partnership, for the most
recent fiscal year:
69.
The following information is available on PDC Enterprises, a partnership, for the most
recent fiscal year:
70.
A partner can withdraw from a partnership by any of the following means
except
:
71.
A bonus may be paid in all of the following situations
except
:
72.
When a partner is added to a partnership:
73.
A partnership recorded the following journal entry:
Cash
60,000
B. Founder, Capital
10,000
R. Aqui, Capital
10,000
H. Joiner, Capital
80,000
74.
Wright, Bell, and Edison are partners and share income in a 2:5:3 ratio. The partnership’s
capital balances are as follows: Wright, $33,000, Bell $27,000 and Edison $40,000. Edison
decides to withdraw from the partnership, and the partners agree not to revalue the assets
upon Edison’s retirement. The journal entry to record Edison’s June 1 withdrawal from the
partnership if Edison sells his interest to Whitney for $45,000 after the other two partners
approve Whitney as partner is: