College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Question
Chapter 19, Problem 5TF
To determine
Identify whether the given statement is true or false.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
When two or more sole proprietors form a partnership, their respectivebalance sheets serve as the basis for the opening entries for theinvestments of such partners.
The purpose of preparation of partners' capital account is:
a.
To know the balance of capital of each partner
b.
To know the balance of goodwill of each partner
c.
To know the balance of drawings of each partner
d.
To know the interest on loan of each partner
Which of the following statements is correct with regard to drawing accounts that may be used by a partnership?
Group of answer choices
A. Drawing accounts establish the amount that may be taken from partnership by a partner in a given time period
B. Drawing accounts are closed to the partners’ capital accounts at the end of the accounting period
C. Drawing accounts appear on the balance sheet as a contra-equity account
D. Drawing accounts are similar to Retained Earnings in a corporation.
Chapter 19 Solutions
College Accounting, Chapters 1-27
Ch. 19 - Prob. 1TFCh. 19 - Prob. 2TFCh. 19 - Prob. 3TFCh. 19 - Prob. 4TFCh. 19 - Prob. 5TFCh. 19 - Prob. 1MCCh. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MC
Ch. 19 - Prob. 1CECh. 19 - Prob. 2CECh. 19 - Prob. 3CECh. 19 - Prob. 4CECh. 19 - Prob. 5CECh. 19 - Prob. 1RQCh. 19 - Prob. 2RQCh. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 1SEACh. 19 - Prob. 2SEACh. 19 - Prob. 3SEACh. 19 - Prob. 4SEACh. 19 - ENTRIES: PARTNERSHIP LIQUIDATION On liquidation of...Ch. 19 - Prob. 6SPACh. 19 - Prob. 7SPACh. 19 - Prob. 8SPACh. 19 - Prob. 9SPACh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1SEBCh. 19 - Prob. 2SEBCh. 19 - Prob. 3SEBCh. 19 - Prob. 4SEBCh. 19 - Prob. 5SEBCh. 19 - Prob. 6SPBCh. 19 - Prob. 7SPBCh. 19 - ENTRIES FOR DISSOLUTION OF PARTNERSHIP Cummings...Ch. 19 - Prob. 9SPBCh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1MYWCh. 19 - Prob. 1ECCh. 19 - Prob. 1MPCh. 19 - Prob. 1CPCh. 19 - Prob. 1COP
Knowledge Booster
Similar questions
- Explain the effect of dissolution on the authority and liability of the partners and the order in which the assets of a partnership are distributed to creditors and partners.arrow_forwardWhich of the following is true in relation to a partnership? a. A partnership is a separate legal entity Ob. A partnership is jointly owned and managed by the partners C. A partnership can raised capital by issuing shares to the members of the publie d. A partnership is able to own property and other assets in its own namearrow_forwardList down the adjusted assets and liabilities of each partner to determine partner's capital.arrow_forward
- Which one of the following will be recorded in the statement of financial position of the partnership? a. Opening balance of capital from partners' capital account b. Interest on capital from partners' capital account c. Closing balance of capital from partners' capital account d. Interest on drawings from partners' capital accountarrow_forwardAnswer the following questions regarding a partner's capital account. a. What is a partner's capital account? What methods can be used to determine the capital account and when might these methods be used? A partner's capital account can be thought of as partner's ownership in the entity. A partner's capital account reflects the partner's in the partnership, and it is determined using one of several possible methods defined by the partnership. The partner's ending capital account balance is the same amount as the partner's basis. A tax basis capital account might be used if the partnership otherwise required to prepare financial reporting information. b. Select either "Yes" or "No" to indicate which of the following are included in a partner's ending capital account balance and which are not. 1. The capital account reflects contributions and distributions of cash or other property to or from the partner. 2. The capital account accumulates the partner's share of…arrow_forwardWhen accounts receivables are transferred into a partnership, at what amount should they be recorded? Include a definition of Accounts Receivable in your response.arrow_forward
- Indicate what is the difference between a general partnership and a limited liability company and when might each type of entity be used by completing the table below. Classify each characteristic as belonging to a "General partnership", a "Limited liability company", or both a "General partnership and limited liability company". Characteristic belongs to ... a. Partners are considered members b. Permitted to participate in management of the entity c. Creditors collect from both partnership assets and partners. d. The partners have unlimited liability for the entity's debt. e. Absent a personal guarantee, no liability for the entity's debt. f. Usually used for corporate joint ventures where the corporate partners are established with limited assets.arrow_forwardThe basis of a partner's interest in a partnership, particularly a trading partnership, is always the same as the partner's capital account balance. True O Fabearrow_forwardWhen a partnership is liquidated, any gains or losses realized by the sale of noncash assets are allocated to the partners based on their income sharing ratio. Why?arrow_forward
- If a partnership is liquidated, how is the final allocation of business assets made to the partners? Equally According to the profit and loss ratio. According to the final capital account balances. According to the initial investment made by each of the partners.arrow_forwardChoose the correct. If a partnership is liquidated, how is the final allocation of business assets made to the partners?a. Equally.b. According to the profit and loss ratio.c. According to the final capital account balances.d. According to the initial investment made by each of the partners.arrow_forwardThere is a liquidation of assets of a partnership. Describe the order in which assets must be distributed upon liquidation of a partnership, and explain the "right-of-offset" concept.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage