Which of the following transactions is NOT treated as a transaction occurring between a partnership and a partner not in his capacity as a partner? O A $30,000 loan from a 15% partner to the partnership. O A 30% partner receiving $80,000 a year to manage the operations of the partnership. O A 10% partner receiving $3,000 a year to prepare the income tax returns of a partnership in the business of manufacturing and selling furniture. O A 20% partner selling a small building to the partnership for $100,000. O A partnership leasing land tha 15% partner for the partner's personal use.

Which of the following transactions is NOT treated as a transaction occurring between a partnership and a partner not in his capacity as a partner? O A $30,000 loan from a 15% partner to the partnership. O A 30% partner receiving $80,000 a year to manage the operations of the partnership. O A 10% partner receiving $3,000 a year to prepare the income tax returns of a partnership in the business of manufacturing and selling furniture. O A 20% partner selling a small building to the partnership for $100,000. O A partnership leasing land tha 15% partner for the partner's personal use.

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

Can you work this problem
A and B agreed to form a partnership. The partnership agreement stipulates the following: Initial capital of $280,000 A 60:40 interest in the equity of the partnership, A. Contributed $200,000 cash while B. Contributed $280,000 cash. Requirement: Which partner should provide additional investment(or withdraw part of this investment in order to bring the partners capital credits equal to their respective interest in the equity of the partnership?
Ahmed contributes cash of $12, 000 and Fatima contributes Office equipment that cost $10,000but valued at $8,000, during the first-year partners earn a profit of $5, 000. Assume the partners agreed to share the profit and loss equally.1. Prepare a journal entry to form the partnership? 2. How much profit should each partner earned?
Douglas pays Selena $45,700 for her 25% interest in a partnership with net assets of $127,900. Following this transaction, Douglas's capital account should have a credit balance of a. $45,700 b. $127,900 c. $11,425 d. $31,975
required: A's share in partnership's profit B's share in partnership's profit Ending Capital Balance of A Ending Capital Balance of B
Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $24,000 cash, and Nichols contributes $10,000 cash and equipment having a book value of $5,120. Prepare the entry to record Nichols's investment in the partnership, assuming the equipment has a fair value of $6.400. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit
es A partnership has the following capital balances: Artur, Capital Bella, Capital Callo, Capital $ 60,000 30,000 90,000 Profits and losses are split as follows: Artur (20%), Bella (30%), and Callo (50%). Callo wants to leave the partnership and is paid $100,000 from the business based on provisions in the articles of partnership. Required: Assuming the partnership uses the bonus method, compute the balance of Bella's capital account after Callo withdraws. Note: Amounts to be deducted should be indicated with minus sign. Bella's capital balance before withdrawal bonus to Callo Allocation of Callo's bonus Bella's capital balance after Callo's withdrawal
Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $15,000 cash, and Nichols contributes $10,000 cash and equipment having a book value of $3,500.Prepare the entry to record Nichols’s investment in the partnership, assuming the equipment has a fair value of $4,000. What is the account title and explanation? what is debit? what is credit?