Accounting Chapter 14 1 Cherry hill And Hace Had Been Partners For

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??