Willow Construction Company is a partnership with three equal partners. On April 4, 2020, one of the partners fell off some scaffolding and was permanently paralyzed. He could no longer contribute to the company, so he withdrew his partnership. The other two partners bought out his part of the company and continued the company with only two partners. However, they stil had to rewrite the partnership agreement to form a new partnership. This is because a change in partners causes O mutual agency. O unlimited liability for the remaining partners. O partnership dissolution. O partnership realignment.

Willow Construction Company is a partnership with three equal partners. On April 4, 2020, one of the partners fell off some scaffolding and was permanently paralyzed. He could no longer contribute to the company, so he withdrew his partnership. The other two partners bought out his part of the company and continued the company with only two partners. However, they stil had to rewrite the partnership agreement to form a new partnership. This is because a change in partners causes O mutual agency. O unlimited liability for the remaining partners. O partnership dissolution. O partnership realignment.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

i need the answer quickly
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell’s creditors have filed a $21,000 claim against the partnership’s assets. The partnership currently holds assets of $300,000 and liabilities of $100,000. If the assets can be sold for $190,000, what is the minimum amount that Bell’s creditors would receive? –0– $2,000 $2,800 $6,000
22. Help me selecting the right answer. Thank you
Vishal
Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2019, O’Donnell invests a building worth $74,000 and equipment valued at $44,000 as well as $32,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O’Donnell to join this partnership, Reese draws up the following profit and loss agreement: O’Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year.O’Donnell will also have added to his capital account 10 percent of partnership income each year (without regard for the preceding interest figure) or $6,000, whichever is larger. All remaining income is credited to Reese.Neither partner is allowed to withdraw funds from the partnership during 2019.…
Foss, Albertson, and Espinosa are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $111,000, $62,000, and $32,000, respectively. Assume instead that Foss leaves the partnership. Foss is paid $129,000 with a bonus to the retiring partner. Prepare the journal entry to record Foss’s withdrawal. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
this is for my accounting homework please help asap
Kim, Nicolas, and Troy are general partners in KNT Partnership sharing profits and losses in the ratio of 2:4:4, respectively. The partnership suffered financial distress and the partners decided to liquidate the partnership in December 2019. Accounts, after revaluation, adjustment, and correction, had the following ledger balances: Cash P 90,000 Accounts Receivable 205,000 Allowance for Doubtful Accounts 5,000 Merchandise Inventory 180,000 Equipment Accumulated Depreciation Equipment Accounts Payable Kim, Loan [Loan Payable - Kim] Troy, Loan [Loan Payable Troy] Kim, Capital Nicolas, Capital Troy, Capital 600,000 102,000 182,000 18,000 90,000 100,000 213,000 365,000 For the independent cases that follow in the course of winding up, prepare a statement of liquidation and necessary journal entries to record the liquidation process: A. The entire net receivable was collected, all inventories were sold at cost, and equipment was sold at its carrying value. B. Only 90% of net receivable was…
Michael works as an accountant at a large accounting firm. Michael is also a partner in XYZ partnership. In 2020, Michael spends 240 hours working in XYZ. His business partner, Beth, only spends 210 hours working in the partnership. The partnership has no employees other than the two partners who contribute their time. Michael has materially participated in the partnership. Group of answer choices True False
Please help me by showing your solution in good accounting form. Thank You!
On Jan 10, 2023, partners Kong, Nang and Dee of KND Partnership decided to terminate the operation of their business because of the huge amount of loss incurred in 2022. The business was heavily affec the pandemic due to Covid-19. Kong, Nang and Dee share profits and losses in the ratio 4:33, respectively. All partners are personally solvent, and Nang is a limited partner The Statement of Financial Posit KND Partnership as of December 31, 2022 follows: Assets: Liabilities & Partners' Equity Cash 256,000 Accounts Payable 900.000 Accounts Receivable Due to T. Nang 60,000 30,000 Allow. For Bad Debts Due to C. Dee (6,000) 20,000 Due from F. Kong F. Kong, Capital 20,000 140.000 Equipment T Nang, Capital 101,200 1.200.000 Accumulated Depreciation, Equipment C. Dee (200,000) 138,800 Total Assets 1,330.000 Total Liabilities & Partner's Equity 1,330,000 The customers accounts are no longer collectible and the equipment were sold at a loss of P400,000. The loss on realization of assets charged…
The partnership of kapos, kulang and kasia was affected by the pandemic do the partners have decided to liquidate on December 31, 2019 and gave you the following balances: Cash 100,000 Outside Creditors 890,000 Non-Cash Asset 1,400,000 Loan due to kapos 10,000 Kapos, capital 90,000 Kulang, capital 190,000 Kasia, capital 320,000 The partners share profit and loss in the ratio 5:3:2, respectively. Non cash asset was sold for 1,000,000. All partners are solvent Answer the following: Gain/Loss absorbed by Kasia Capital balance of Kapos after sale of Non – Cash Asset Capital balance of Kulang after sale of Non – Cash Asset Additional Investment by Kapos Final Settlement to Kapos Final Settlement to Kulang Final Settlement to Kasia