Partnership : Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business. To explain: The characteristics of a partnership.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 12, Problem 1Q

To determine

Partnership: Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business.

To explain: The characteristics of a partnership.

Expert Solution & Answer

Answer to Problem 1Q

The following are some of the important characteristics of the partnership:

Association of individuals.
Limited life.
Co-ownership of property.

Explanation of Solution

Association of individuals: A partnership is not known by individual names of the partners but is known by its own name. It can acquire property in its name and can sue and be sued by others in its name. It is a legal entity that means it is registered in its name and is a separate entity that is its assets and liabilities are its own and not those of its partners.
Limited life: The life of partnerships is limited as it ends on the admission, death, retirement, and liquidation of any partner. On each of such occasions the partnership ends and if agreed by partners get renewed.
Co-ownership of property: All the partners of the partnership jointly own the assets of the partners. On the dissolution of the partnership, the amount realized from the assets is shared by the partners in the agreed ratio.

Conclusion

Thus, the partnership is an association of persons, having a limited life and co-ownership of property.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Activity Based Costing - practice problem Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $89,500 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities 1. Materials handling 2. Machine setups Cost Drivers Number of requisitions Number of setups Total cost $35,000 27,500 3. Quality inspections Number of inspections 27,000 $89.500 The cost driver volume for each product was as follows: Cost Drivers Instruments Gauge Total Number of requisitions 400 600 1,000 Number of setups 200 300 500 Number of inspections 200 400 600 Insructions (a) Determine the overhead rate for each activity. (b) Assign the manufacturing overhead costs for April to the two products using activity-based costing.

Bodhi Company has three cost pools and two doggie products (leashes and collars). The activity cost pool of ordering has the cost drive of purchase orders. The activity cost pool of assembly has a cost driver of parts. The activity cost pool of supervising has the cost driver of labor hours. The accumulated data relative to those cost drivers is as follows: Expected Use of Estimated Cost Drivers by Product Cost Drivers Overhead Leashes Collars Purchase orders $260,000 70,000 60,000 Parts 400,000 300,000 500,000 Labor hours 300,000 15,000 10,000 $960,000 Instructions: (a) Compute the activity-based overhead rates. (b) Compute the costs assigned to leashes and collars for each activity cost pool. (c) Compute the total costs assigned to each product.

Torre Corporation incurred the following transactions. 1. Purchased raw materials on account $46,300. 2. Raw Materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials. 3. Factory labor costs incurred were $55,900, of which $51,000 pertained to factory wages payable and $4,900 pertained to employer payroll taxes payable. 4. Time tickets indicated that $50,000 was direct labor and $5,900 was indirect labor. 5. Overhead costs incurred on account were $80,500. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7. Goods costing $88,000 were completed and transferred to finished goods. 8. Finished goods costing $75,000 to manufacture were sold on account for $103,000. Instructions Journalize the transactions.

Answer 2

Question

Chapter 12, Problem 1Q

To determine

Partnership: Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business.

To explain: The characteristics of a partnership.

Expert Solution & Answer

Answer to Problem 1Q

The following are some of the important characteristics of the partnership:

Association of individuals.
Limited life.
Co-ownership of property.

Explanation of Solution

Association of individuals: A partnership is not known by individual names of the partners but is known by its own name. It can acquire property in its name and can sue and be sued by others in its name. It is a legal entity that means it is registered in its name and is a separate entity that is its assets and liabilities are its own and not those of its partners.
Limited life: The life of partnerships is limited as it ends on the admission, death, retirement, and liquidation of any partner. On each of such occasions the partnership ends and if agreed by partners get renewed.
Co-ownership of property: All the partners of the partnership jointly own the assets of the partners. On the dissolution of the partnership, the amount realized from the assets is shared by the partners in the agreed ratio.

Conclusion

Thus, the partnership is an association of persons, having a limited life and co-ownership of property.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 12, Problem 1Q

To determine

Partnership: Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business.

To explain: The characteristics of a partnership.

Expert Solution & Answer

Answer to Problem 1Q

The following are some of the important characteristics of the partnership:

Association of individuals.
Limited life.
Co-ownership of property.

Explanation of Solution

Association of individuals: A partnership is not known by individual names of the partners but is known by its own name. It can acquire property in its name and can sue and be sued by others in its name. It is a legal entity that means it is registered in its name and is a separate entity that is its assets and liabilities are its own and not those of its partners.
Limited life: The life of partnerships is limited as it ends on the admission, death, retirement, and liquidation of any partner. On each of such occasions the partnership ends and if agreed by partners get renewed.
Co-ownership of property: All the partners of the partnership jointly own the assets of the partners. On the dissolution of the partnership, the amount realized from the assets is shared by the partners in the agreed ratio.

Conclusion

Thus, the partnership is an association of persons, having a limited life and co-ownership of property.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 12, Problem 1Q

To determine

Partnership: Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business.

To explain: The characteristics of a partnership.

Expert Solution & Answer

Answer to Problem 1Q

The following are some of the important characteristics of the partnership:

Association of individuals.
Limited life.
Co-ownership of property.

Explanation of Solution

Association of individuals: A partnership is not known by individual names of the partners but is known by its own name. It can acquire property in its name and can sue and be sued by others in its name. It is a legal entity that means it is registered in its name and is a separate entity that is its assets and liabilities are its own and not those of its partners.
Limited life: The life of partnerships is limited as it ends on the admission, death, retirement, and liquidation of any partner. On each of such occasions the partnership ends and if agreed by partners get renewed.
Co-ownership of property: All the partners of the partnership jointly own the assets of the partners. On the dissolution of the partnership, the amount realized from the assets is shared by the partners in the agreed ratio.

Conclusion

Thus, the partnership is an association of persons, having a limited life and co-ownership of property.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 12, Problem 1Q

To determine

Partnership: Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business.

To explain: The characteristics of a partnership.

Expert Solution & Answer

Answer to Problem 1Q

The following are some of the important characteristics of the partnership:

Association of individuals.
Limited life.
Co-ownership of property.

Explanation of Solution

Association of individuals: A partnership is not known by individual names of the partners but is known by its own name. It can acquire property in its name and can sue and be sued by others in its name. It is a legal entity that means it is registered in its name and is a separate entity that is its assets and liabilities are its own and not those of its partners.
Limited life: The life of partnerships is limited as it ends on the admission, death, retirement, and liquidation of any partner. On each of such occasions the partnership ends and if agreed by partners get renewed.
Co-ownership of property: All the partners of the partnership jointly own the assets of the partners. On the dissolution of the partnership, the amount realized from the assets is shared by the partners in the agreed ratio.

Conclusion

Thus, the partnership is an association of persons, having a limited life and co-ownership of property.

Answer 6

Chapter 12, Problem 1Q

To determine

Partnership: Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business.

To explain: The characteristics of a partnership.

Expert Solution & Answer

Answer to Problem 1Q

The following are some of the important characteristics of the partnership:

Association of individuals.
Limited life.
Co-ownership of property.

Explanation of Solution

Association of individuals: A partnership is not known by individual names of the partners but is known by its own name. It can acquire property in its name and can sue and be sued by others in its name. It is a legal entity that means it is registered in its name and is a separate entity that is its assets and liabilities are its own and not those of its partners.
Limited life: The life of partnerships is limited as it ends on the admission, death, retirement, and liquidation of any partner. On each of such occasions the partnership ends and if agreed by partners get renewed.
Co-ownership of property: All the partners of the partnership jointly own the assets of the partners. On the dissolution of the partnership, the amount realized from the assets is shared by the partners in the agreed ratio.

Conclusion

Thus, the partnership is an association of persons, having a limited life and co-ownership of property.

Answer 7

Chapter 12, Problem 1Q

To determine

Partnership: Partnership is an agreement of at least two persons to run a business and share the profit and loss in an agreed ratio. The ratio of sharing profit and loss is decided by the partners through mutual agreement. Generally, small retailers prefer partnership form of business.

To explain: The characteristics of a partnership.

Answer 8

Expert Solution & Answer

Answer to Problem 1Q

The following are some of the important characteristics of the partnership:

Association of individuals.
Limited life.
Co-ownership of property.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Association of individuals: A partnership is not known by individual names of the partners but is known by its own name. It can acquire property in its name and can sue and be sued by others in its name. It is a legal entity that means it is registered in its name and is a separate entity that is its assets and liabilities are its own and not those of its partners.
Limited life: The life of partnerships is limited as it ends on the admission, death, retirement, and liquidation of any partner. On each of such occasions the partnership ends and if agreed by partners get renewed.
Co-ownership of property: All the partners of the partnership jointly own the assets of the partners. On the dissolution of the partnership, the amount realized from the assets is shared by the partners in the agreed ratio.