1.Cox,Davis,and Evans are contemplating the formation of a partnership in which Cox is to invest $30,000and devote one-half time;Davis is to invest $69,000and devote one-fourth time,and Evans is to makeno investment and devote full time.Would Evansbe correct in assuming thatinasmuch as he is not contributingany assets to the firm, he is risking nothing?Explain in detail.

2.Joan Collins and JanetDowney are contemplating the formation of a partnership in which Collins is to devote full time and Downeyis to devote one-half time.In the absence of any agreement will the partners share in net income or net loss in the ratio of 2:1?Explain your answer.

3,A, B, and C are partners sharing income 2:2:1.After distribution of the firm's loss from liquidation, A's capital account has a debit balance of $7,500.If A is personally bankrupt and unable to pay any of the $7,500, how will the loss be divided between B and C?

4.(a) What accounts are debited and credited to record a partner's cash withdrawal in lieu of salary?

(b) What accounts are debited and credited to record the division of net income among partners at the end of the fiscal year?

(c) The articles of partnership provide for a salary allowance of $1,500 per month to partner X.If X withdrew only $1,200 per month, would this affect the division of the partnership net income?