ACCT 405 Week 7 Homework
Chapter 9 - Problems 1, 2, 3, 4, 5, and 6
1). Which of the following is not a reason for the popularity of partnerships as a legal form for businesses?
2). How does partnership accounting differ from corporate accounting?
3). Which of the following best describes the articles of partnership agreement?
4).Pat, Jean Lou, and Diane are partners with capital balances of $50,000, $30,000, and $20,000, respectively. These three partners share profits and losses equally. For an investment of $50,000 cash (paid to the business), MaryAnn will be admitted as a partner with a one-fourth interest in capital and profits. Based on this information, which of the following best justifies the amount of MaryAnn’s investment?
).A partnership has the following capital balances:
Danville is going to invest $70,000 into the business to acquire a 30 percent ownership interest. Goodwill is to be recorded. What will be Danville’s beginning capital balance?
6). A partnership has the following capital balances:Oscar is going to pay a total of $200,000 to these three partners to acquire a 25 percent ownership interest from each. Goodwill is to be recorded. What is Jethro’s capital balance after the transaction?