Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Textbook Question
Chapter 15, Problem 6P
What is a predistribution plan?
a. A list of the procedures to be performed during a liquidation.
b. A guide for the cash distributions to partners during a liquidation.
c. A determination of the final cash distribution to the partners on the settlement date.
d. A detailed list of the transactions that will transpire in the reorganization of a partnership.
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In partnership liquidation the first cash distribution to the partner should be made in accordance with the
Select one:
a. Ratio of the capital contribution by partners
b. Balances of partners' capital accounts
c. Partners profit &loss ratios
d. Safe payment schedule
In a partnership liquidation, the final cash payment to the partners should be made in accordance with the*a. balance of partners' capital accounts.b. partner's profit and loss sharing ratio.c. ratio of the capital contributions by partners.d. safe payment computations.
In partnership liquidation, the final cash distribution to the partners should be made in accordance with the:
a. Partners’ profit and loss sharing ratio
b. Balances of the partner’s capital account
c. Ratio of the capital contributions by the partners
d. Ratio of capital contributions less withdrawals by the partners
Chapter 15 Solutions
Advanced Accounting
Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - What is the purpose of a statement of liquidation?...Ch. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - A partnership is considering possible liquidation...
Ch. 15 - What is a predistribution plan? a. A list of the...Ch. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15PCh. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Prob. 18PCh. 15 - Prob. 25PCh. 15 - Prob. 26PCh. 15 - March, April, and May have been in partnership for...Ch. 15 - Prob. 28PCh. 15 - Prob. 29P
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- no need to explain. What is a cash priority program? a. A guideline for the cash distributions made to partners during a liquidation b. A list of the rules to be performed during a partnership dissolution c. A list of the transactions that will transpire in the reorganization of a partnership d. None of the abovearrow_forwardIn accounting for the lump-sum liquidation of a partnership, cash payments to partners after all non-partner creditors' claims have been satisfied, but before the final cash distribution should be according toa. the final balances in partner capital accounts.b. the partners' relative share of the gain or loss on liquidation.c. the partners' relative profit and loss sharing ratio.d. safe payment computations.arrow_forwardIn accounting for the lump-sum liquidation of a partnership, cash payments to partners after all non-partner creditors’ claims have been satisfied, but before the final cash distribution should be according to: a. Safe payment computations. b. The final balances in partner capital accounts. c. The partners’ relative profit and loss sharing ratio. d.The partners’ relative share of the gain or loss on liquidation.arrow_forward
- 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 followedarrow_forwardHow is a predistribution plan created for a partnership liquidation?arrow_forwardWhen accounts receivables are transferred into a partnership, at what amount should they be recorded? Include a definition of Accounts Receivable in your response.arrow_forward
- How do loans from partners affect the distribution of assets in a partnership liquidation?arrow_forwardAccounting In the liquidation of a partnership, a loan from a partner a. Will be paid off at the same time as payment of other liabilities of the partnership b. Will be paid off before distribution of cash to partners for their capital investments c. Will be closed to the partner's drawing account d. Will be written offarrow_forward1. 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…arrow_forward
- State the method to determine the amounts to be paid to partners in a liquidation.arrow_forwardStatement I: In the preparation of cash priority program, the partner who is most prone to losses is deemed to be the first priority in cash distribution. Statement II: In the case of partnership liquidation, when the partners’ interests are already in accordance with the P/L ratio, succeeding payments to the partners must be done in accordance with P/L. Group of answer choicesarrow_forwardWhat is the purpose of a partnership appropriation account? A to avoid disagreements between the partners B to calculate residual profits for division between partners C to calculate the profit sharing ratio D to determine the amount of partners’ salariesarrow_forward
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