Question listQuestion 3Question 4Question 5O Question 6O Question 7Question 8KFor each of the following scenarios, select an "X" under the applicable form of business in the space provided.a. The business is not making enough money to pay its bills.The owners do not have to make up the difference with theirpersonal funds.b. Anna and Sui have owned their business together for 5years. Anna dies. The business must be closed if they chosethis form of business.c. An unincorporated business with five owners is a ...d. The profits of Chi's business must be reported on her taxreturn.e. There is a lawsuit against a business, and there is notenough money to pay the claim. The owners only lose theamount they have invested into the business.Proprietorship Partnership Corporation

Partnership-A partnership is one of the forms of business which is carried out by more than one…

Answered: For each of the following scenarios,…

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

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 still 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.
Jeremy is thinking of starting up a small business selling NASCAR memorabilia. He asks his friend, Carmen, if she'd like to join him in setting up a partnership to start the business. What is one disadvantage in joining the partnership that Carmen should consider? (A) Carmen should realize that profits in the partnership will be reduced by dividend payments to shareholders. B) Carmen should realize that, as an owner of the business, she will be personally responsible for the debts of the business. Carmen should realize that the profits of the business will also be taxed as dividend income, so she faces the potential for double taxation of that business income. D Carmen should realize that the Jeremy will have complete control over the business because it was his idea. C
A borrower had submitted a loan application and was approved, She submits a change to her application, and it is now denied. Which of the following changes will most likely result in a loan being denied? The borrower begins to receive public assistance. BO The borrower mistakenly omitted a previous residence. C The borrower is going to take maternity leave from her employer. DO The borrower assumes additional debt that was not previously reported.
Juan and Pedro are proprietors who decided to combine their business. On June 1, Juan and Pedro showed the following on their books:JuanAssets – P 300,000Liabilities – P 100,000PedroAssets – P 150,000Liabilities – P 50,000Upon assessment, it was determined that each partner should recognize an allowance for bad debts amounting to P 10,000. Noncurrent assets of Pedro were over depreciated by P 20,000. Some liabilities pertaining to accruals were not yet recognized in the books. Juan failed to recognize salary expenses amounting to P 15,000 and Pedro did not include accrual for electricity bill amounting to P 5,000. After formation of the partnership, how much is the net assets of the company?
Ekiya, who is single, has been offered a position as a city landscape consultant, the position pays $127,400 in wages. Assume Ekiya has no dependents. Ekiya deducts the standard deduction instead of itemized deductions, she is not eligible for the quailed business income deduction, and she did not make any charitable donations.
! Required information [The following information applies to the questions displayed below.] The partnership of Garcia, Iglesias, and Kassabian was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $44,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets Liabilities Garcia, loan $ 180,000 40,000 100,000 40,000 120,000 $ 40,000 70,000 60,000 Garcia, capital (25%) 160,000 150,000 $ 480,000 Total liabilities and capital $ 480,000 Iglesias, capital (25%) Kassabian, capital (50%) Required: Prepare a predistribution plan for this partnership. Garcia, Loan and Capital Iglesias, Capital Kassabian, Capital Beginning balances $ 140,000 $ 40,000 $ 120,000 Assumed loss of Schedule 1 40,000 40,000 (80,000) Step one balances $…
Sam owns an insurance agency and makes the following business gifts during the year. Calculate Sam's deduction for business gifts. If an amount is zero, enter "0". Аmount Donee Amount Allowed 1. Ms. Sears (a client) $35, plus $4 shipping 2. Mr. Williams (a tennis partner, 55 not a business prospect or client) 3. Mr. Sample (a client) received $22 and Mrs. Sample (nonclient spouse of Mr. Sample) 42 received a gift valued at $20 4. Various customers (calendars 300 costing $3 each with the company name on them) 5. Mr. Shiver (an employee gift, 175 a watch, for 25 years of continuous service) Total business gift deduction
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
Joanna takes a security interest in the equipment in Jason Store and files a financing statement claiming “equipment and all after acquired equipment.” Berkeley later sells Jason Store a cash register, taking a security interest in the register, and (a) files nine days after Jason receives the register or (b) files twenty-five days after Jason receives the register. If Jason fails to pay both Joanna and Berkeley and they foreclose their security interests, who has priority on the cash register? Explain.
5. Help me selecting the right answer. Thank you
When JUSTIN and BIEBER, partners who share earnings 60:40, were severely injured in an accident, a liquidator was appointed to wind up their business. The accounts showed cash, P90,000; other assets, P235,000; liabilities, P45,000; Justin's capital, Pl26,000; and Bieber's capital, PI54,000. The expenses of liquidating the business (advertising, rent, travel, etc.) are estimated at P25,000. How much cash can be distributed safely at this point?

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS