Question 1

Winchester,Wesson & Smith are dissolving their partnership.Their agreement allocates profits and losses 40:30:30 respectively.The ending capital balances are Winchester $45,000;Wesson $25,000 and Smith $13,000.After all assets are liquidated and liabilities paid,there is $12,000 in cash to be distributed.Smith's share of the excess cash is

Accepted Answer

A)   $3,600.
B)   $3,900.
C)   $4,000.
D)   $4,800.E) A) and C)
F) B) and D)

Question 2

The dissolution of a partnership and the formation of a new partnership may have no noticeable effect on the continuing operations of the business.

Accepted Answer

A) True 
 B)False

Question 3

If a partnership's salary and interest allowances are in excess of the net income,the entry to close Income Summary after the allowances are recorded will include a(n)____________________ to Income Summary.

Accepted Answer

The answer of If a partnership's salary and interest allowances...

Question 4

The entry to record a partner's interest allowance includes a debit to the ____________________ account.

Accepted Answer

The answer of The entry to record a partner's interest...

Question 5

Amounts withdrawn by partners to pay personal living expenses are recorded in their ____________________ accounts.

Accepted Answer

The answer of Amounts withdrawn by partners to pay personal...

Question 6

Partnership net income of $33,000 is to be divided between two partners,Elan Chan and Roy Anderson,according to the following arrangement: There will be salary allowances of $20,000 for Chan and $10,000 for Anderson,with the remainder divided equally.How much of the net income will be distributed to Chan and Anderson,respectively?

Accepted Answer

A)   $22,000 and $11,000
B)   $21,500 and $11,500
C)   $16,500 and $16,500
D)   $21,000 and $12,000E) B) and C)
F) A) and B)

Exam 19: Accounting for Partnerships

Correct Answer
verified

The dissolution of a partnership and the formation of a new partnership may have no noticeable effect on the continuing operations of the business.

Correct Answer
verified

Amounts withdrawn by partners to pay personal living expenses are recorded in their ____________________ accounts.

Correct Answer
verified

The entry to record a partner's interest allowance includes a debit to the ____________________ account.

Correct Answer
verified

Correct Answer
verified

If a partnership's salary and interest allowances are in excess of the net income,the entry to close Income Summary after the allowances are recorded will include a(n)____________________ to Income Summary.

Correct Answer
verified

Exam 19: Accounting for Partnerships

Correct AnswerverifiedShow Answer

The dissolution of a partnership and the formation of a new partnership may have no noticeable effect on the continuing operations of the business.

Correct AnswerverifiedShow Answer

Amounts withdrawn by partners to pay personal living expenses are recorded in their ____________________ accounts.

Correct AnswerverifiedShow Answer

The entry to record a partner's interest allowance includes a debit to the ____________________ account.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a partnership's salary and interest allowances are in excess of the net income,the entry to close Income Summary after the allowances are recorded will include a(n)____________________ to Income Summary.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified