Partners' share of net income is recognized in the accounts throughAccrual entriesa.O b. Adjusting entriesO c. Closing entriesO d. Correcting entries

Partners Share of income: Before the share of income of partnership all the Accrual entries,…

Answered: Partners' share of net income is…

Partners' share of net income is recognized in the accounts through O a. Accrual entries O b. Adjusting entries O c. Closing entries O d. Correcting entries

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 1BD

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Partners' withdrawals of assets are: O Credited to their withdrawals account. Debited to their withdrawals account. Credited to their retained earnings account. Debited to their retained earnings account. Debited to their asset accounts.
A statement of changes in partners' equity should Include all of the following except a. Beginning capital balances. b. Investments during the period. c. Partner's payments of loans. d. Withdrawals during the period. e. Ending capital balances. f. Share of profit for the period.
The partner's drawing account is used: O To reduce the partner's capital account balances at the end of an accounting period O To record the partner's share of net income or loss for an accounting period O In the same manner as the partner's loan accounts O To record the partner's salaries.
Discuss the possibility for a post-closing debit balance in a partner’s capital account.
Partners' Current account balance changes every yedr because O a. Interest on capital, interest on drawings, salary etc. are recorded O b. Revenue and operating expenses are recorded O c. Assets and liabilities are recorded O d. Additional capital and permanent withdrawal of capital are recorded
Which of the following is not a component of the formula used to distribute income? Salary allocation to those partners working B Interest on the average capital investments Interest on notes to partners D After all other allocation, the remainder divided according to the profit and loss sharing ratio
1. What entry is necessary to reflect interest payable on partner's drawings? a. Partner's Current (Dr.), Profit and Loss Appropriation (Cr.) b. Profit and Loss Appropriation (Dr.), Partner's Current (Cr.) c. Profit and Loss Appropriation (Dr.), Cash (Cr.) d. Profit and Loss Appropriation (Dr.), Partner's Capital (Cr.) 2. What entry is necessary to reflect interest earned on capital account balances? a. Partner's Drawings (Dr.), Partner's Current (Cr.) b. Profit and Loss Appropriation (Dr.), Partner's Drawings (Cr.) c. Partner's Drawings (Dr.), Interest Payable (Cr.) d. Partner's Current (Dr.), Profit and Loss Appropriation (Cr.) 3. A partner's personal gas receipts have been treated as part of the partnership's service vehicle expenses. Which of the following entries is necessary to correct the error? a. Drawings (Dr.), Service vehicle expense (Cr.) b. Service vehicle expense (Dr.), Drawings (Cr.) c. Service vehicle expense (Dr.), Capital…
Gaining ratio is computed on: O a. Admission of a partner O b. Retirement of a partner O c. Retirement or death of a partner o d. Death of a partner
A partner's withdrawal of assets from a LLP that is considered a permanent reduction in that partner's equity is debited to the partner's: Select one :- a. Retained Earnings account b. Loan Receivable account c. Drawing account d. Capital account
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Recording 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 followed
When accounts receivables are transferred into a partnership, at what amount should they be recorded? Include a definition of Accounts Receivable in your response.