Question 1

The Uniform Partnership Act defines a partnership as "an association of two or more persons to carry on as co-owners of a business for profit."

Accepted Answer

The definition of a partnership according to the Uniform Partnership Act is "an association of two or more persons to carry on as co-owners of a business for profit."

Question 2

A partnership is defined by the Generally Accepted Accounting Principles.

Accepted Answer

Partnership is a legal entity and is defined by the Partnership Act of the respective country, not by Generally Accepted Accounting Principles (GAAP). However, GAAP provides guidelines on how to account for partnership transactions and prepares financial statements for external reporting purposes.

Question 3

Able partner invested cash in the business.
Debit ________ Credit ________

Accepted Answer

The answer of Able partner invested cash in the business.
Debit...

Question 4

A method of dividing net income or loss between the partners is known as a(n):

Accepted Answer

Both salary allowance and interest allowance are methods of dividing net income or loss between partners.

Question 5

Discuss the following characteristics of partnerships:
a)Limited life
b)Mutual agency
c)Unlimited liability

Accepted Answer

The answer of Discuss the following characteristics of partnerships:
a)Limited life
b)Mutual...

Question 6

Applying the interest allowance method,compute Julie and Jennifer's share of net income if Julie invested $50,000 and Jennifer invested $35,000 at an 10% interest rate,with the remainder to be divided equally.Net income was $10,000.

Accepted Answer

First, calculate the interest for each partner: Julie gets $5,000 (10% of $50,000) and Jennifer gets $3,500 (10% of $35,000). This totals $8,500. The remaining $1,500 ($10,000 - $8,500) is divided equally, giving each $750. Thus, Julie gets $5,750 ($5,000 + $750) and Jennifer gets $4,250 ($3,500 + $750).

Question 7

Mary and Jeff entered into a partnership agreement.However,the agreement did not state how income and losses would be divided.The law states that income will be divided:

Accepted Answer

In the absence of a specific agreement, the law typically presumes that partners will share profits and losses equally.

Question 8

The agreed-upon ratio for dividing earnings or losses of a partnership is called:

Accepted Answer

The term used to describe the agreed-upon ratio for dividing earnings or losses of a partnership is the profit and loss ratio. This ratio determines how much of the profits or losses each partner is entitled to, based on their agreement. The other options, interest allowance and salary allowance, refer to specific types of payments that may be made to partners but do not necessarily relate to the distribution of profits and losses. Profit and loss allowance is not a commonly used term in partnership agreements.

Question 9

Discuss (a)the purpose of the articles of partnership,and (b)indicate the items that should be included.

Accepted Answer

The answer of Discuss (a)the purpose of the articles of...

Question 10

The business paid an account.
Debit ________ Credit ________

Accepted Answer

The answer of The business paid an account.
Debit ________ Credit...

Question 11

Prepare the journal entry to record the partners' investment in the company.
Palmer invests $3,000 cash and equipment on his books at $6,000 with accumulated depreciation of $500.The fair market value of the equipment is $6,000.Evans is investing $6,000 cash and $1,000 accounts payable.

Accepted Answer

The answer of Prepare the journal entry to record the...

Question 12

What is the closing entry to allocate net income of $54,000 to Sara,Ellen,and Mary? Respective capital balances are $50,000,$80,000,and $20,000.No agreement was made for division of income.

Accepted Answer

The answer of What is the closing entry to allocate...

Question 13

Able accepted Baker into the partnership with an investment of cash,inventory,and store equipment,including accumulated depreciation.
Debit ________ & ________ & ________ Credit ________ & ________

Accepted Answer

The answer of Able accepted Baker into the partnership with...

Question 14

The business bought store equipment on account.
Debit ________ Credit ________

Accepted Answer

When a business buys store equipment on account, the store equipment account is debited because the business is acquiring a new asset, and the accounts payable account is credited because the business is incurring a liability that it promises to pay in the future.

Question 15

Which method of allocation of profits and losses is based on a percent of initial investment of the partners?

Accepted Answer

The answer of Which method of allocation of profits and...

Question 16

Norm and Sam agreed on October 1,201x to enter into a partnership.Norm contributes $100,000 and Sam contributes $75,000.Journalize their initial investments.

Accepted Answer

The answer of Norm and Sam agreed on October 1,201x...

Question 17

If Blake invests $10,000 cash in a partnership,Cash is debited and Blake,Capital is credited,$10,000.

Accepted Answer

When Blake invests $10,000 cash in a partnership, the journal entry will be to debit Cash and credit Blake, Capital for $10,000.

Question 18

The business provided services on credit.
Debit ________ Credit ________

Accepted Answer

The answer of The business provided services on credit.
Debit ________...

Question 19

Prepare the journal entry to record the partners' investment in the company.
Todd and Dillon combine their two businesses and enter into a partnership.Todd invests $10,000 cash and equipment on his books at $8,000 with accumulated depreciation of $3,000.The fair market value of the equipment is $7,000.Dillon is investing $6,000 cash and $500 accounts payable.

Accepted Answer

The answer of Prepare the journal entry to record the...

Question 20

Mutual agency means that the act of a single partner is binding on all the other partners.

Accepted Answer

Mutual agency is a characteristic of partnerships where each partner has the authority to act on behalf of the partnership, and therefore the actions of a single partner can bind all the others.

Quiz 17: Partnership

The Uniform Partnership Act defines a partnership as "an association of two or more persons to carry on as co-owners of a business for profit."

A partnership is defined by the Generally Accepted Accounting Principles.

Able partner invested cash in the business. Debit Credit

A method of dividing net income or loss between the partners is known as a(n) :

Discuss the following characteristics of partnerships: a)Limited life b)Mutual agency c)Unlimited liability

Applying the interest allowance method,compute Julie and Jennifer's share of net income if Julie invested $50,000 and Jennifer invested $35,000 at an 10% interest rate,with the remainder to be divided equally.Net income was $10,000.

Mary and Jeff entered into a partnership agreement.However,the agreement did not state how income and losses would be divided.The law states that income will be divided:

The agreed-upon ratio for dividing earnings or losses of a partnership is called:

Discuss (a)the purpose of the articles of partnership,and (b)indicate the items that should be included.

The business paid an account. Debit Credit

Prepare the journal entry to record the partners' investment in the company. Palmer invests $3,000 cash and equipment on his books at $6,000 with accumulated depreciation of $500.The fair market value of the equipment is $6,000.Evans is investing $6,000 cash and $1,000 accounts payable.

What is the closing entry to allocate net income of $54,000 to Sara,Ellen,and Mary? Respective capital balances are $50,000,$80,000,and $20,000.No agreement was made for division of income.

Able accepted Baker into the partnership with an investment of cash,inventory,and store equipment,including accumulated depreciation. Debit & & Credit &

The business bought store equipment on account. Debit Credit

Which method of allocation of profits and losses is based on a percent of initial investment of the partners?

Norm and Sam agreed on October 1,201x to enter into a partnership.Norm contributes $100,000 and Sam contributes $75,000.Journalize their initial investments.

If Blake invests $10,000 cash in a partnership,Cash is debited and Blake,Capital is credited,$10,000.

The business provided services on credit. Debit Credit

Mutual agency means that the act of a single partner is binding on all the other partners.

Quiz 17: Partnership

The Uniform Partnership Act defines a partnership as "an association of two or more persons to carry on as co-owners of a business for profit."

A partnership is defined by the Generally Accepted Accounting Principles.

Able partner invested cash in the business. Debit ________ Credit ________

A method of dividing net income or loss between the partners is known as a(n) :

Discuss the following characteristics of partnerships: a)Limited life b)Mutual agency c)Unlimited liability

Applying the interest allowance method,compute Julie and Jennifer's share of net income if Julie invested $50,000 and Jennifer invested $35,000 at an 10% interest rate,with the remainder to be divided equally.Net income was $10,000.

Mary and Jeff entered into a partnership agreement.However,the agreement did not state how income and losses would be divided.The law states that income will be divided:

The agreed-upon ratio for dividing earnings or losses of a partnership is called:

Discuss (a)the purpose of the articles of partnership,and (b)indicate the items that should be included.

The business paid an account. Debit ________ Credit ________

Prepare the journal entry to record the partners' investment in the company. Palmer invests $3,000 cash and equipment on his books at $6,000 with accumulated depreciation of $500.The fair market value of the equipment is $6,000.Evans is investing $6,000 cash and $1,000 accounts payable.

What is the closing entry to allocate net income of $54,000 to Sara,Ellen,and Mary? Respective capital balances are $50,000,$80,000,and $20,000.No agreement was made for division of income.

Able accepted Baker into the partnership with an investment of cash,inventory,and store equipment,including accumulated depreciation. Debit ________ & ________ & ________ Credit ________ & ________

The business bought store equipment on account. Debit ________ Credit ________

Which method of allocation of profits and losses is based on a percent of initial investment of the partners?

Norm and Sam agreed on October 1,201x to enter into a partnership.Norm contributes $100,000 and Sam contributes $75,000.Journalize their initial investments.

If Blake invests $10,000 cash in a partnership,Cash is debited and Blake,Capital is credited,$10,000.

The business provided services on credit. Debit ________ Credit ________

Mutual agency means that the act of a single partner is binding on all the other partners.

Able partner invested cash in the business. Debit Credit

The business paid an account. Debit Credit

Able accepted Baker into the partnership with an investment of cash,inventory,and store equipment,including accumulated depreciation. Debit & & Credit &

The business bought store equipment on account. Debit Credit

The business provided services on credit. Debit Credit