See attachments for the questions, there are a total of 12. If you have any questions - please feel free to ask. Thank you.
Do It! Review 12-1 Indicate whether each of the following statements is true or false. 1. Each partner is personally and individually liable far all partnership liabll If a partnership dissolves, each partner has a claim to the specic assets he/she contributed to the rm. In a limited partnership, all partners have limited liability. A major advantage of regular partnership is that it is simple and inexpensive to create and operate. Members of a limited liability company can take an active management rule. LINK 10 1911 Do It! Review 12-2 Fruntenac Company reported net income of $63,700. The partnership agreement provides for salaries of $22,200 to Miley and $18,600 to Guthrie. They divide the remainder 33% to Miley and 67% to Guthrie. Calculate division of net income. ' Iev Guthrie Division of net income $ $:] 'VIJNKTOIEXTVI Prepare the closing entry. (Credit accunnt titles are automatlcally indented when amount is entered. Do nut indent manually.) mum Iiti. and Explanatinn [Jellit Credit. \\ V' i H | Do It! Review 12-3IJ Parsons Cumpany wishes to liquidate the rm by distributing the company's cash Eu the three partners. Pnor tn the distribuiiun of cash, the company's balances are: Cash $62,100; Oakley. Capital (CL) $49,920; Quaney. Capital (Dr.) $24,400; and Ellis, Capital (Ch) $36,580. The income ratios at the three partners are 2 : 2 : 6, respectively. Prepare the entry to record the absurption of Quaney's capital deciency by the other partners and the distribution of cash to the partners with credit balances. {Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titlm and ExplaQuaney Debit Cluiit v v v . (To record writeoff of capital deciency) v V . v (To record distributiun of cash of partners) LINK 'lo TEXI Brief Exercise 1271 E Your answer is incorrect. Try again. Barbara Ripley and Fred Nichols decide to organize the ALLeStar partnership. Ripley invests $96,000 cash. and Nichols contributes $64,000 cash and equipment havmg a book value of $22,400. Prepare the entry to record Nichols's investment in the partnership, assuming the equipment has a fair value of $32,0UU. (Credit account titles are automatically indented when amount is entered. Do not indent manuay.) Account tls and Explanation Debit aedit Brief Exercise 12-3 Rod Dall Cu. repuris net incume Of $12,000. The incume ratios are Rod 70% and Ball 3U%. Indicate the leiSlOn of net income to each partner, and prepare the entry to distribute the net income. (Credit accuunt titles are automatically indented when amount is entered. Do not indent manually.) Account T-IIIE and Bplanation Debit Credit v V v . LINK 1o TEXT Brief Exercise 12-4 PFW Cu. reports net income of $73,[ID(J. Partner salary allowances are Pitts $11,000, Filbert $6,100, and Witten $4,8D. Indicate the dlwsion of net income to each partner, assuming the income ratio is 50 : 20 : 30, respectively. D on of Net Income & Tu_ta| Salary allowance $ $ 3; $ Remaining Income Total division of net income g $ $ $ LINK 10 Ian Brief Exercise 12-5 Nabb 8' Fry Co. reports net income of $27,80I]. Interest allowances are Nabb $6,2[IEI and Fry $5,800, salary allowances are Nahb $16,[IU(J and Fry $10,130, the remainder I5 shared equally. Show the distribution of lncnme. (If an amount reduces the account balance then enter with a negative sign preceding the number (2.9. 715,000 or parenthesis e.g. (15,000).) D an of Net Income Nahb Fry Total Salary allowance $ $ $ Interest allowance Remaining deciency Tntal divlsmn nf net income $ 5 5 LINK To IEX'I Brief Exercise 12-6 After liquidating noncash assets and paying credltors, account balances in the Mann CD. are Cash $17,94u: A, Capital (Cr.) $8,750; B, Capltal (CL) $5,02u; and C, Capltal (Ct) $4,170. The partners share Income equally. Joumalize the final distribution nf cash to the partners. {Credit account titles are autnmatically indented when amount is entered. 00 not indent manually.) Marlin! i'Etla and Explanation Dehit Credit v v LINK To TEX'I Brief Exercise 12-7 Gamma Cu. rapital balances are: Barr $27,610, Gray $25,000, and Eubank $18,400. The partners share income equally. Tnvar is admitted to the rm by purchasing one-half of Eubank's interest for $10,520. Joumalize the admission of Tovar to the partnership. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Amount Tltk and Explanation Dehit Credit v v . Brief Exercise 1278 In Eastwood Cn., capital balances are Irey $37,10U and Pedlgo $46,90U. The partners share incnme equally. Vernon is admitted tn the rm with a 44% interest by an investment of cash of $43,400. Juumalize the admissiun uf Vernon. (Credit accuunt titles are automatically indented when amount is entered. Do not indent manually.) Acmunl 'l'itl and 'Ex'planatiun DelIit .cmdit \\ Vl l ll l 'VLIMK 1o 112x17 Brief Exercise 1279 Capital balances In Pelrnar Co. are Langn $36,5U, osln $30,3, and Fernettl $19,500. Lango and Oslo each agree to pay Femetti $13,500 from their personal asses. Lango and Oslo each receive 50% of Femetti's equity. The partners share income equally. Juumalize the withdrawal nf Fernetti. (Credit account titles are automatically indented when amnunt is entered. Du nut indent manually.) munt Titks and Explanatinn Debit Credit v v v LINK 10 15a Brief Exercise 12-10 Capital balances in Pelmar Co. are Langu $32,000. Oslu $24,0UU, and Fernetti $16,000. Fernetti receives $19,200 from partnership assets in wrthdrawrng from the firm. Lango and Oslo each receive 50% of Fernetti's equity. The partners share income equally. Jaurnalize the withdrawal of Femelti. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) mum ns and Explanatinn Debit nedit v. V LINK 'lo TEXT
