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1. Cherryhill and Hace had been partners for several years, and they decided
to admit Quincy to the partnership. The accountant for the partnership believed
that the dissolved partnership and the newly formed partnership were two
separate entities. What method would the accountant have used for recording
the admission of Quincy to the partnership?
2. When the
hybrid method
is used to record the withdrawal of a partner, the
partnership
3. The
disadvantages
of the partnership form of business organization,
compared to corporations, include
4. The
advantages
of the partnership form of business organization,
compared to corporations, include
5. The
dissolution
of a partnership occurs
6. The partnership of Clapton, Seidel, and Thomas was insolvent and will be
unable to pay $30,000 in liabilities currently due. What recourse was available to
the partnership's creditors?
7. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was Wasser's total share of net income for 2010?
8. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was Nolan's total share of net income for 2010?
9. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was Cleary's total share of net income for 2010?
10. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was Nolan's capital balance at the end of 2010?
11. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was Wasser's capital balance at the end of 2010?
12. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was Cleary's capital balance at the end of 2010?
13. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was the total capital balance for the partnership at December 31, 2010?
14. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was the amount of interest attributed to Wasser for 2011?
15. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was Wasser's total share of net income for 2011?
16. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was the remainder portion of net income allocated to Nolan for 2011?
17. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was Nolan's total share of net income for 2011?
18. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was Cleary's total share of net income for 2011?
19. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was Nolan's capital balance at the end of 2011?
20. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was Wasser's capital balance at the end of 2011?
21. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was Cleary's capital account balance at the end of 2011?
22. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with
investments of $100,000, $150,000, and $200,000, respectively. For division of
income, they agreed to (1) interest of 10% of the beginning capital balance each
year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the
remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for
Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
What was the total capital balance for the partnership at December 31, 2011??
