Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 15, Problem 6Q
Angela and Agatha are partners in Double A Partners. When they withdraw cash for personal use, how should that be recorded in the accounting records?
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Assess the truth of this statement: One of the rules of debits and credits and account balances for a partnership is that when recording a transaction for a receipt of cash, the cash account is always debited for the amount of cash received.
Group of answer choices
This statement is true.
This statement is false.
There is not enough information to determine whether or not this statement is true.
This statement is not applicable to accounting concepts.
Assess the truth of this statement: The transaction of a partnership that is recording cash invested
by a partner should be recorded as a debit to cash and a credit to the individual partner's drawing
account.
O This statement is true.
O This statement is false.
O There is not enough information to determine whether or not this statement is true.
O This statement is not applicable to accounting concepts.
When accounts receivables are transferred into a partnership, at what amount should they be recorded? Include a definition of Accounts Receivable in your response.
Chapter 15 Solutions
Principles of Accounting Volume 1
Ch. 15 - A partnership ________. A. has one owner B. can...Ch. 15 - Any assets invested by a particular partner in a...Ch. 15 - Which of the following is a disadvantage of the...Ch. 15 - Mutual agency is defined as: A. a mutual agreement...Ch. 15 - Chani contributes equipment to a partnership that...Ch. 15 - Juan contributes marketable securities to a...Ch. 15 - Which one of the following would not be considered...Ch. 15 - A well written partnership agreement should...Ch. 15 - What type of assets may a partner not contribute...Ch. 15 - How does a newly formed partnership handle the...
Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - When a partnership dissolves, the first step in...Ch. 15 - When a partnership dissolves, the last step in the...Ch. 15 - Prior to proceeding with the liquidation, the...Ch. 15 - Does a partnership pay income tax?Ch. 15 - Can a partners personal assets in a limited...Ch. 15 - Can a partnership assume liabilities as part of...Ch. 15 - Does each partner have to contribute an equal...Ch. 15 - What types of bases for dividing partnership net...Ch. 15 - Angela and Agatha are partners in Double A...Ch. 15 - On February 3, 2016 Sam Singh invested $90,000...Ch. 15 - Why do partnerships dissolve?Ch. 15 - What are the four steps involved in liquidating a...Ch. 15 - When a partner withdraws from the firm, which...Ch. 15 - What is the first step in a partnership...Ch. 15 - When a partnership liquidates, do partners get...Ch. 15 - Coffee Partners decides to close due to the...Ch. 15 - On May 1, 2017, BJ and Paige formed a partnership....Ch. 15 - The partnership of Chase and Chloe shares profits...Ch. 15 - The partnership of Tasha and Bill shares profits...Ch. 15 - Cheese Partners has decided to close the store. At...Ch. 15 - The partnership of Michelle, Amal, and Maureen has...Ch. 15 - The partnership of Tatum and Brook shares profits...Ch. 15 - Arun and Margot want to admit Tammy as a third...Ch. 15 - When a partnership is liquidated, any gains or...Ch. 15 - The partnership of Magda and Sue shares profits...Ch. 15 - The partnership of Arun, Margot, and Tammy has...Ch. 15 - Match each of the following descriptions with the...Ch. 15 - While sole proprietorships and corporations are...Ch. 15 - A partnership is thriving. The three partners get...
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Similar questions
- what happen to the account if the owner pay trade payable using own personal bank?arrow_forwardA member attempts to make a make deposit to her account, which involves a large sum of cash, which is inconsistent with her known business activity. This arouses the teller's suspicion, prompting him to ask her what is the source of the funds. The member refuses to disclose its origin. How should the teller proceed? A. The transaction should not be undertaken, and an STR should be filled. B. Transaction may be undertaken if the member is on who is known to management and who has had a relationship with the credit union for 5 years C. The member should be advised that a STR would be filed D. None of the abovearrow_forwardGenerally speaking, what events or activities would normally result in a partner’s capital account being debited?arrow_forward
- In preparing the schedule of safe payments, it is assumed that: a. all partners are solvent b. All non-cash assets are considered worthless c. No liquidation expenses will be settled d. Unpaid liabilities will be settled by the partners own personal propertyarrow_forwardDiscuss the possibility for a post-closing debit balance in a partner’s capital account.arrow_forward18) Which one of the following will not be recorded in profit and loss appropriation account? a. Commission to partner b. Interest on capital c. Salary to partner d. Interest paid to bankarrow_forward
- 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.arrow_forwardExplain using practical example how a partner with a debit balance on his capital account will be accounted for in a partnership account?arrow_forwardThe owner of an accounting practice is considering establishing a partnership with two other persons to carry on the business. What are the major disadvantages of a partnership form that she should consider in making her decision?arrow_forward
- If the personal assets of the partners are exposed to the business debts, it is called? O a. Mutual Agency O b. Limited life O c. Unlimited Liability o d. Co-ownership of propertyarrow_forwardWhich of the following statements correctly gives the account to be debited and the account to be credited when journalizing a partner's withdrawal of cash in lieu of salary? Group of answer choices debit cash and credit the partner's drawing account debit cash and credit the partner's capital account debit the partner's drawing account and credit cash debit the partner's capital account and credit casharrow_forwardThe 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.arrow_forward
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