Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 12, Problem 7DQ
a.
To determine
Indicate accounts to be debited and credited in withdrawal of cash by partner lieu of salary.
b.
To determine
Explain if the withdrawal of C will affect the division of the net income of the partnership.
c.
To determine
Indicate accounts to be debited and credited to record the division of net income among the partners.
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a. What accounts are debited and credited to record a partner’s cash withdrawal in lieu of salary?b. The articles of partnership provide for a salary allowance of $6,000 per month to partner C. If C withdrew only $4,000 per month, would this affect the division of the partnership net income? Explain.c. At the end of the fiscal year, what accounts are debited and credited to record the division of net income among partners?
Which statement is CORRECT?
Select one:
A. Partners' salary is an allowable expenses
B. Tax returns are due in April the following year
C. A partnership is considered as a separate entity from the partners
D. Unabsorbed capital allowance can be claimed against the future income of LLP
b. The articles of partnership provide for a salary allowance of $6,000 per month to partner
C. If C withdrew only $4,000 per month, would this affect the division of the partnership net
income? Explain.
Chapter 12 Solutions
Financial Accounting
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 1PEACh. 12 - Prob. 1PEBCh. 12 - Prob. 2PEACh. 12 - Prob. 2PEBCh. 12 - Prob. 3PEACh. 12 - Prob. 3PEBCh. 12 - Prob. 4PEACh. 12 - Prob. 4PEBCh. 12 - Prob. 5PEACh. 12 - Liquidating partnerships Prior to liquidating...Ch. 12 - Prob. 6PEACh. 12 - Prob. 6PEBCh. 12 - Revenue per employee Niles and Cohen, CPAs earned...Ch. 12 - Prob. 7PEBCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Statement of members equity, admitting new member...Ch. 12 - Distribution of cash upon liquidation Hewitt and...Ch. 12 - Distribution of cash upon liquidation David Oliver...Ch. 12 - Liquidating partnershipscapital deficiency Lewis,...Ch. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - Statement of partnership liquidation After closing...Ch. 12 - Prob. 24ECh. 12 - Prob. 25ECh. 12 - Revenue per professional staff The accounting firm...Ch. 12 - Prob. 27ECh. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Prob. 3PACh. 12 - Prob. 4PACh. 12 - Statement of partnership liquidation After the...Ch. 12 - Prob. 6PACh. 12 - Prob. 1PBCh. 12 - Prob. 2PBCh. 12 - Prob. 3PBCh. 12 - Prob. 4PBCh. 12 - Statement of partnership liquidation After the...Ch. 12 - On August 3, the firm of Chapelle, Rock, and Pryor...Ch. 12 - Prob. 1CPCh. 12 - Prob. 3CPCh. 12 - Prob. 4CP
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- Which of the following will increase the current assets of a partnership at the end of a financial year? O A. Rent income owed for the current financial year; Insurance premium paid for the next financial year, Commission income received in advance OB. Rent income owed for the current financial year; Insurance premium paid for the next financial year, Account of a debtor written off O C. Rent income owed for the current financial year; Insurance premium paid for the next financial year; A financial asset that is due to mature in the next financial year O D. Insurance premium paid for the next financial year; A financial asset that is due to mature in the next financial year; Increase in provision for bad debtsarrow_forwardin the year ended the partner withdrawal closed in Select one: a. parter capital b. income statement c. expenses d. partner loanarrow_forwardWhen bonus is given to old partners ____? a. old partners' capital accounts are credited. b. new partner's capital account is debited c. the bonus is divided based on P/L ratio d. all of the above When Billie retired from Billie, Ive, and Fromis partnership, he received cash in excess of his capital account balance. Under the bonus method, the excess received by Billie a. had no effect on the capital account balances of Ive and Fromis. b. was recognized as bonus to the old partners c. reduced the capital account balances of both Ive and Fromis d. was recognized as an operating expense Which of the following will not result in dissolution of a partnership? a. Incapacity of a partner b. admission of a new partner c. bankruptcy of a partner d.. negative capital balance of a partner When there are only two persons in the partnership, the sale of one's share to the other will make the partnership become a…arrow_forward
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