Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 15, Problem 17MC
Prior to proceeding with the liquidation, the
A. prepare
B. complete the accounting cycle for final operational period
C. prepare only closing entries
D. complete financial statements only
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Prepare a Statement of Partnership Liquidation and the entries to record the following:1. Sale of all non-cash assets2. Distribution of gain on realization to the partners3. Payment of the liabilities4. Distribution of cash to the partners
What are the steps involved in closing the books of a partnership at the end of an accounting period?
22. Partnership firm make adjusting entries at the end of the accounting period:
a.
In order to record revenue and expenses in the correct accounting period
b.
In order to record revenue and expenses in the future accounting period
c.
In order to record revenue and expenses in the previous accounting period
d.
In order to record partners' capital in the correct accounting period
Chapter 15 Solutions
Principles of Accounting Volume 1
Ch. 15 - A partnership ________. A. has one owner B. can...Ch. 15 - Any assets invested by a particular partner in a...Ch. 15 - Which of the following is a disadvantage of the...Ch. 15 - Mutual agency is defined as: A. a mutual agreement...Ch. 15 - Chani contributes equipment to a partnership that...Ch. 15 - Juan contributes marketable securities to a...Ch. 15 - Which one of the following would not be considered...Ch. 15 - A well written partnership agreement should...Ch. 15 - What type of assets may a partner not contribute...Ch. 15 - How does a newly formed partnership handle the...
Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - When a partnership dissolves, the first step in...Ch. 15 - When a partnership dissolves, the last step in the...Ch. 15 - Prior to proceeding with the liquidation, the...Ch. 15 - Does a partnership pay income tax?Ch. 15 - Can a partners personal assets in a limited...Ch. 15 - Can a partnership assume liabilities as part of...Ch. 15 - Does each partner have to contribute an equal...Ch. 15 - What types of bases for dividing partnership net...Ch. 15 - Angela and Agatha are partners in Double A...Ch. 15 - On February 3, 2016 Sam Singh invested $90,000...Ch. 15 - Why do partnerships dissolve?Ch. 15 - What are the four steps involved in liquidating a...Ch. 15 - When a partner withdraws from the firm, which...Ch. 15 - What is the first step in a partnership...Ch. 15 - When a partnership liquidates, do partners get...Ch. 15 - Coffee Partners decides to close due to the...Ch. 15 - On May 1, 2017, BJ and Paige formed a partnership....Ch. 15 - The partnership of Chase and Chloe shares profits...Ch. 15 - The partnership of Tasha and Bill shares profits...Ch. 15 - Cheese Partners has decided to close the store. At...Ch. 15 - The partnership of Michelle, Amal, and Maureen has...Ch. 15 - The partnership of Tatum and Brook shares profits...Ch. 15 - Arun and Margot want to admit Tammy as a third...Ch. 15 - When a partnership is liquidated, any gains or...Ch. 15 - The partnership of Magda and Sue shares profits...Ch. 15 - The partnership of Arun, Margot, and Tammy has...Ch. 15 - Match each of the following descriptions with the...Ch. 15 - While sole proprietorships and corporations are...Ch. 15 - A partnership is thriving. The three partners get...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Prepare journal entries to record the transactions incurred in the liquidation of a partnership.arrow_forwardIDENTIFICATION: Another term for liquidation by total. A partner whose capital account balance is debit. A financial statement that shows the result of the liquidation process. It is transfer of capital from one partner to another. The person assigned to monitor the liquidation process. It is the termination of the life of the partnership.arrow_forwardClosing entries of a partnership include entries to a. record distribution of cash to the partner b. eliminate the capital accounts and record distribution of asset to partners to effect the partnership termination and liquidation c. close income and expense accounts to the income summary account; and close the profit or loss to the drawing accounts d. close the profit or losses and dividends declared accounts to retained earningsarrow_forward
- What is a predistribution plan? Choose the correct.a. A list of the procedures to be performed during a liquidation.b. A guide for the cash distributions to partners during a liquidation.c. A determination of the final cash distribution to the partners on the settlement date.d. A detailed list of the transactions that will transpire in the reorganization of a partnership.arrow_forwardMake a Journal entry, General ledger for adjusting entries, statement of financial position, and Opening Entry in the partnership book in this problemarrow_forwardPlease prepare the final statement of partnership liquidation.arrow_forward
- Choose the correct.Which of the following statements is true concerning the accounting for a partnership going through liquidation?a. Gains and losses are reported directly as increases and decreases in the appropriate capital account.b. A separate income statement is created to measure only the profit or loss generated during liquidation.c. Because gains and losses rarely occur during liquidation, no special accounting treatment is warranted.d. Within a liquidation, all gains and losses are divided equally among the partners.arrow_forwardWhat is a predistribution plan? A list of the procedures to be performed during a liquidation. A guide for the cash distributions to partners during a liquidation. A determination of the final cash distribution to the partners on the settlement date. A detailed list of the transactions that will transpire in the reorganization of a partnership.arrow_forwardPrior to the creation of a partnership, the sole proprietor must first re-evaluate or adjust its business's assets and liabilities. In what account must all revaluations or adjustments be made? O Drawing Account O Capital Account O Income Summary O Revaluation Surplusarrow_forward
- Accounting In the liquidation of a partnership, a loan from a partner a. Will be paid off at the same time as payment of other liabilities of the partnership b. Will be paid off before distribution of cash to partners for their capital investments c. Will be closed to the partner's drawing account d. Will be written offarrow_forwardRecording of adjusting entries in partnership firm ensure that: a. The goodwill received by each partner b. The drawings allowed to each partner c. Cash basis principle is followed d. Both revenue recognition and matching principles are followedarrow_forwardWhat is the first step in a partnership liquidation (termination and sale of assets)?arrow_forward
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