Abel and Carr formed a partnership and agreed to divide initial capital equally, even though Abel contributed USD100,000 and Carr contributed USD84,000 in identifiable assets. Under the bonus approach to adjust the capital accounts, Carr's unidentifiable asset should be debited for:

1 .The December 31, Year 1 condensed balance sheet of Mason & Gross, a partnership, follows:Current assetsUSD125,000Equipment (net)15,000Total assetsUSD140,000Liabilities10,000Mason, Capital80,000Gross, Capital50,000Total liabilities and capitalUSD140,000Market values at December 31, Year 1 are as follows:Current assetsUSD90,000Equipment30,000Liabilities10,000On January 2, Year 2, the partnership was incorporated and 1,000 shares of USD5 par value common stock were issued. What amount should be credited to additional contributed capital?

A USD0 B USD135,000 C USD105,000 D USD125,000

题型: 单选题 提问时间: 2021-08-24

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2 .On July 1, a partnership was formed by Johnson and Smith. Johnson contributed cash. Smith, previously a sole proprietor, contributed property other than cash including realty subject to a mortgage, which was assumed by the partnership. Smith's capital account at July 1 should be recorded at:

A The fair value of the property less the mortgage payable at July 1. B The fair value of the property at July 1. C Smith's book value of the property less the mortgage payable at July 1. D Smith's book value of the property at July 1.

题型: 单选题 提问时间: 2021-08-24

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3 .On April 30, Algee, Belger, and Ceda formed a partnership by combining their separate business proprietorships. Algee contributed cash of USD50,000. Belger contributed property with a USD36,000 carrying amount, a USD40,000 original cost, and USD80,000 fair value. The partnership accepted responsibility for the USD35,000 mortgage attached to the property. Ceda contributed equipment with a USD30,000 carrying amount, a USD75,000 original cost, and USD55,000 fair value. The partnership agreement specifies that profits and losses are to be shared equally but is silent regarding capital contributions. Which partner has the largest April 30 capital account balance?

A Algee. B Belger. C All capital account balances are equal. D Ceda.

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4 .When property other than cash is invested in a partnership, at what amount should the noncash property be credited to the contributing partner's capital account?

A Assessed valuation for property tax purposes. B Fair value at the date of contribution. C Contributing partner's original cost. D Contributing partner's tax basis.

题型: 单选题 提问时间: 2021-08-24

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5 .On January 2, Smith purchased the net assets of Jones' Cleaning, a sole proprietorship, for USD350,000, and commenced operations of Spiffy Cleaning, a sole proprietorship. The assets had a carrying amount of USD375,000 and a market value of USD360,000. In Spiffy's cash-basis financial statements for the year ended December 31, Spiffy reported revenues in excess of expenses of USD60,000. Smith's drawings during the year were USD20,000. In Spiffy's financial statements, what amount should be reported as Capital-Smith?

A USD390,000 B USD410,000 C USD415,000 D USD400,000

题型: 单选题 提问时间: 2021-08-24

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7 .In the Adel-Brick partnership, Adel and Brick had a capital ratio of 3:1 and a profit and loss ratio of 2:1, respectively. The bonus method was used to record Colter's admittance as a new partner. What ratio would be used to allocate, to Adel and Brick, the excess of Colter's contribution over the amount credited to Colter's capital account?

A Adel and Brick's new relative capital ratio. B Adel and Brick's old profit and loss ratio. C Adel and Brick's old capital ratio. D Adel and Brick's new relative profit and loss ratio.

题型: 单选题 提问时间: 2021-08-24

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8 .Kern and Pate are partners with capital balances of USD60,000 and USD20,000, respectively. Profits and losses are divided in the ratio of 60:40. Kern and Pate decided to form a new partnership with Grant, who invested land valued at USD15,000 for a 20% capital interest in the new partnership. Grant's cost of the land was USD12,000. The partnership elected to use the bonus method to record the admission of Grant into the partnership. Grant's capital account should be credited for:

A USD16,000 B USD19,000 C USD12,000 D USD15,000

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9 .Cor-Eng Partnership was formed on January 2. Under the partnership agreement, each partner has an equal initial capital balance accounted for under the goodwill method. Partnership net income or loss is allocated 60% to Cor and 40% to Eng. To form the partnership, Cor originally contributed assets costing USD30,000 with a fair value of USD60,000 on January 2, while Eng contributed USD20,000 in cash. Drawings by the partners during the year totaled USD3,000 by Cor and USD9,000 by Eng. Cor-Eng's year-end net income was USD25,000.Eng's initial capital balance in Cor-Eng is closest to:

A USD60,000 B USD25,000 C USD20,000 D USD40,000

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10 .Cor-Eng Partnership was formed on January 2. Under the partnership agreement, each partner has an equal initial capital balance accounted for under the goodwill method. Partnership net income or loss is allocated 60% to Cor and 40% to Eng. To form the partnership, Cor originally contributed assets costing USD30,000 with a fair value of USD60,000 on January 2, while Eng contributed USD20,000 in cash. Drawings by the partners during the year totaled USD3,000 by Cor and USD9,000 by Eng. Cor-Eng's year-end net income was USD25,000.Cor's share of Cor-Eng's net income is:

A USD15,000 B USD12,000 C USD12,500 D USD7,800

题型: 单选题 提问时间: 2021-08-24

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