Exam (elaborations)
Modern Advanced Accounting In Canada
- Course
- Institution
- Book
Modern Advanced Accounting In Canada
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Modern Advanced Accounting In Canada 9th Edition by Hilton Murray Test Bank All chapters ISBN: 9781259654695
-
SOLUTION MANUAL Modern Advanced Accounting In Canada, 10th Edition By Darrell Herauf, Chima Mbagwu, Chapters 1 - 12, Complete
-
Modern Advanced Accounting In Canada
Seller
Follow
kushboopatel6867
Reviews received
Content preview
Modern Advanced Accounting In Canada, 10th EditionSolution Manual By Darrell Herauf, Chima Mbagwu, Verified
Chapters 1 - 12, Complete Newest Version
Jell and Dell were partners with capital balances of $600 and $800 and an income
sharing ratio of 2:3. They admitted Zell to a 30% interest in the partnership, and the
total amount of goodwill credited to the original partners was $700. What amount
did Zell contribute to the business?
A) $ 560.
B) 630.
C) 590.
D) 900.
E) 600 - ANSWER: D) 900
Which of the following statements is false concerning the partnership Schedule of
Liquidation?
A. The Schedule of Liquidation provides a listing of transactions to date, current cash,
and capital balances.
B. Liquidations may take a considerable length of time to complete.
C. Frequent reporting by the accountant is rarely necessary.
D. The Schedule of Liquidation keeps creditors and partners apprised of the results
of the process of dissolution
E. The Schedule of Liquidation provides a listing of property still held by the
partnership as well as liabilities remaining unpaid. - ANSWER: C) Frequent reporting
by the accountant is rarely necessary.
Which of the following is not a characteristic of a partnership?
A. It is easy to form a partnership.
B. The partnership itself pays no income taxes.
C. Any partner can be held personally liable for all debts of the business.
D. Each partner has the power to obligate the partnership for liabilities.
E. A partnership requires written Articles of Partnership. - ANSWER: E. A partnership
requires written Articles of Partnership.
P, L, and O are partners with capital balances of $50,000, $30,000 and $20,000 and
who share in the profit and loss of the PLO partnership 30%, 20%, and 50%,
respectively, when they agree to admit C for a 20% interest.
If C is to contribute an amount equal to his book value share of the new partnership,
how much should C contribute?
A) $ 18000
B) $10000
C) $25,000
D) $20000
,E) $22000 - ANSWER: C) $25,000
Cleary, Wasser, and Nolan formed a partnership on January 1, 2012, 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 2012 and $180,000 in 2013.
What is Wasser's capital balance at the end of 2013?
A. $313,780.
B. $263,520.
C. $264,540.
D. $201,000.
E. $304,040. - ANSWER: C. $264,540.
The Keaton, Lewis, and Meador partnership had the following balance sheet just
before entering liquidation:
cash 100000, noncash assets 210000; total 310000. Liabilities 40000, Keaton, cap
90000, Lewis, cap 60000; Meador, cap 120000; total 310000.
Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. The
partnership feels confident it will be able to eventually sell the noncash assets and
wants to distribute some cash before paying liabilities. How much would each
partner receive of a total $60,000 distribution of cash?
A) Keaton 40000, Lewis 0, Meador 20000;
B) Keaton 12000, Lewis 24000, M 24000;
c) K 20000, L 13333, M 26667;
D) K 60000, L 0, M 0;
E) K 10000, L 0, M 50000.
A) option A
B) option B
C) Option C
D) Option D
E) option E - ANSWER: A) option A
Which of the following could result in the termination and liquidation of a
partnership?
1) Partners are incompatible and choose to cease operations.
2) There are excessive losses that are expected to continue.
3) Retirement of a partner.
A) 1 only
B) 1 and 2 only
C) 2 and 3 only
D) 3 only
E) 1, 2, and 3 - ANSWER: E) 1, 2, and 3
, The Abrams, Bartle, and Creighton partnership began the process of liquidation with
the following balance sheet:
Cash 16,000
Noncash asset 434,000
Total- 450,000
Liability-150000
Abrams-80,000
Bartle- 90,000
Creighton-130,000
total- 450,000
Abrams, Bartle, and Creighton share profits and losses in a ratio of 3:2:5. Liquidation
expenses are expected to be $12,000.
The noncash assets were sold for $134,000. Which partner(s) would have had to
contribute assets to the partnership to cover a deficit in his or her capital account?
A) Abrams
B) Creighton
C) Abrams and Bartle
D) Bartle
E) Abrams and Creighton - ANSWER: E) Abrams and Creighton
Withdrawals from the partnership capital accounts are typically not used
A. to reward partners for work performed in the business.
B. to reduce the partners' capital account balances at the end of an accounting
period.
C. to reduce the basic investment that has been made in the business.
D. to record interest earned on a partner's capital balance.
E. to record the partnership's payment of a partner's personal expense such as
income tax. - ANSWER: D. to record interest earned on a partner's capital balance.
A local partnership has assets of cash of $130,000 and land recorded at $700,000. All
liabilities have been paid and the partners are all personally insolvent. The partners'
capital accounts are as follows Roberts, $500,000, Ferry, $300,000 and Mones,
$30,000. The partners share profits and losses 5:3:2. If the land is sold for $450,000,
how much cash will Roberts receive in the final settlement?
A. $0.
B. $30,000.
C. $502,500.
D. $217,500.
E. $362,500. - ANSWER: E) $362,500.
The 12/31/2016 balance sheet of Despot Inc. included the following:
Common stock, 25 million shares at $20 par $500 million
Paid-in capital—excess of par 3,000 million
Retained earnings 980 million
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kushboopatel6867. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67163 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now