Division of Partnership Income Income and loss of partnership firm are divided among partners as per the partnership agreement. In case of no specification regarding division of income or loss in partnership agreement, income or loss are equally distributed. The common method of dividing partnership income is based on: Service of the partners Services and Investments of the partners To prepare : The journal entry to record monthly partner drawing in the month of January

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Answer 1

Question

Chapter 12, Problem 12.9EX

a.

To determine

Division of Partnership Income

Income and loss of partnership firm are divided among partners as per the partnership agreement. In case of no specification regarding division of income or loss in partnership agreement, income or loss are equally distributed. The common method of dividing partnership income is based on:

Service of the partners

Services and Investments of the partners

To prepare: The journal entry to record monthly partner drawing in the month of January

b.

To determine

To prepare: The journal entry to record closing entry of income summary account at the end of the year.

c.

To determine

To prepare: The journal entry to record closing entry of drawing account at the end of the year

d.

To determine

To explain: Why partner drawings be considered “reclaimable” until profits have been allocated?

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Mangesh Analytics, Inc. sells earnings forecasts for European securities. Its credit terms are 2/15, net 40. Based on experience, 60 percent of all customers will take the discount. What is the average collection period?

Answer 2

Question

Chapter 12, Problem 12.9EX

a.

To determine

Division of Partnership Income

Income and loss of partnership firm are divided among partners as per the partnership agreement. In case of no specification regarding division of income or loss in partnership agreement, income or loss are equally distributed. The common method of dividing partnership income is based on:

Service of the partners

Services and Investments of the partners

To prepare: The journal entry to record monthly partner drawing in the month of January

b.

To determine

To prepare: The journal entry to record closing entry of income summary account at the end of the year.

c.

To determine

To prepare: The journal entry to record closing entry of drawing account at the end of the year

d.

To determine

To explain: Why partner drawings be considered “reclaimable” until profits have been allocated?

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Answer 3

Question

Chapter 12, Problem 12.9EX

a.

To determine

Division of Partnership Income

Income and loss of partnership firm are divided among partners as per the partnership agreement. In case of no specification regarding division of income or loss in partnership agreement, income or loss are equally distributed. The common method of dividing partnership income is based on:

Service of the partners

Services and Investments of the partners

To prepare: The journal entry to record monthly partner drawing in the month of January

b.

To determine

To prepare: The journal entry to record closing entry of income summary account at the end of the year.

c.

To determine

To prepare: The journal entry to record closing entry of drawing account at the end of the year

d.

To determine

To explain: Why partner drawings be considered “reclaimable” until profits have been allocated?

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Answer 4

Question

Chapter 12, Problem 12.9EX

a.

To determine

Division of Partnership Income

Income and loss of partnership firm are divided among partners as per the partnership agreement. In case of no specification regarding division of income or loss in partnership agreement, income or loss are equally distributed. The common method of dividing partnership income is based on:

Service of the partners

Services and Investments of the partners

To prepare: The journal entry to record monthly partner drawing in the month of January

b.

To determine

To prepare: The journal entry to record closing entry of income summary account at the end of the year.

c.

To determine

To prepare: The journal entry to record closing entry of drawing account at the end of the year

d.

To determine

To explain: Why partner drawings be considered “reclaimable” until profits have been allocated?

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Answer 5

Chapter 12, Problem 12.9EX

a.

To determine

Division of Partnership Income

Income and loss of partnership firm are divided among partners as per the partnership agreement. In case of no specification regarding division of income or loss in partnership agreement, income or loss are equally distributed. The common method of dividing partnership income is based on:

Service of the partners

Services and Investments of the partners

To prepare: The journal entry to record monthly partner drawing in the month of January

b.

To determine

To prepare: The journal entry to record closing entry of income summary account at the end of the year.

c.

To determine

To prepare: The journal entry to record closing entry of drawing account at the end of the year

d.

To determine

To explain: Why partner drawings be considered “reclaimable” until profits have been allocated?

Answer 6

Chapter 12, Problem 12.9EX

a.

To determine

Division of Partnership Income

Income and loss of partnership firm are divided among partners as per the partnership agreement. In case of no specification regarding division of income or loss in partnership agreement, income or loss are equally distributed. The common method of dividing partnership income is based on:

Service of the partners

Services and Investments of the partners

To prepare: The journal entry to record monthly partner drawing in the month of January

Answer 7

Chapter 12, Problem 12.9EX

a.

To determine

Division of Partnership Income

Income and loss of partnership firm are divided among partners as per the partnership agreement. In case of no specification regarding division of income or loss in partnership agreement, income or loss are equally distributed. The common method of dividing partnership income is based on:

Service of the partners

Services and Investments of the partners

To prepare: The journal entry to record monthly partner drawing in the month of January

Answer 8

b.

To determine

To prepare: The journal entry to record closing entry of income summary account at the end of the year.

Answer 9

b.

To determine

To prepare: The journal entry to record closing entry of income summary account at the end of the year.

Answer 10

c.

To determine

To prepare: The journal entry to record closing entry of drawing account at the end of the year

Answer 11

c.

To determine

To prepare: The journal entry to record closing entry of drawing account at the end of the year

Answer 12

d.

To determine

To explain: Why partner drawings be considered “reclaimable” until profits have been allocated?

Answer 13

d.

To determine

To explain: Why partner drawings be considered “reclaimable” until profits have been allocated?

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 12 - Prob. 1DQ Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ Ch. 12 - Prob. 6DQ Ch. 12 - Prob. 7DQ Ch. 12 - Prob. 8DQ Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ

Solution Summary: The author explains that partner drawings are a part of partner's capital which is withdrawn by partner for personal use.

Concept explainers

To prepare: The journal entry to record closing entry of income summary account at the end of the year.

To prepare: The journal entry to record closing entry of drawing account at the end of the year

To explain: Why partner drawings be considered “reclaimable” until profits have been allocated?

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Chapter 12 Solutions