Can these two partners require the partnership

Assignment Help Accounting Basics
Reference no: EM131017840

Question 1

Two sole proprietors, L and M, agreed to form a partnership on January 1, 2013. The trial balance for each proprietorship is shown as of January 1, 2013. The Trail balance has been send to every one of you as an excel spreadsheet.

The LM partnership will take over the assets and assume the liabilities of the proprietors as of January 1, 2013.

Discuss the following:

1.The steps required to form the partnership (by Tuesday)

2.Prepare and post the financials for LM Partnership and discuss the differences that you have with your colleagues (by Wednesday)

3.After Wednesday, consider the following: Assume that M agreed to recognize the goodwill generated by L's business. Accordingly, M agreed to recognize an amount for L's goodwill such that L's capital equaled M's capital on January 1, 2013. Given this alternative, how does the balance sheet prepared for #1 change?

Question 2

Assume that because of a new law, the types of significant transactions a partnership engages in are no longer lawful. Two of the five partners wish to wind up and terminate the partnership. Discuss the following:

1.Can these two partners require the partnership to be terminated?

2.Discuss the accounting for a liquidation where there is no deficit.

3.Discuss how the accounting differs if there is a deficit in one of the partner's capital accounts

4.How would the accounting for a liquidation differ for a lump-sum payment vs. installment payments?

Reference no: EM131017840

Questions Cloud

What happens to deadweight loss : For a given excise tax, holding the supply curve fixed, as the slope of the demand curve becomes flatter (more elastic), what happens to Deadweight Loss
Calculate the profit margin ratios for abc medical center : Calculate the following ratios for ABC Medical Center for years 2003 and 2002. Profit Margin. Return on Assets (ROA). Return on Equity (ROE). Current Ratio. Days Cash on Hand (Short-Term).
Construct a relative frequency histogram for the income data : Describe the shape of the histogram using the standard terminology of histograms. Would you describe per capita income as being fairly homogenous across the United States?
Prepare the journal entries that would be recorded on july 1 : Assuming that 80% of all June 30 receivables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank.
Can these two partners require the partnership : After Wednesday, consider the following: Assume that M agreed to recognize the goodwill generated by L's business. Accordingly, M agreed to recognize an amount for L's goodwill such that L's capital equaled M's capital on January 1, 2013
Transitioning to such a system : Describe how that approach might work at the restaurant and why that could be expected to reduce waiting time. What cost would be involved in transitioning to such a system? What other approaches could be used to reduce waiting times?
What is the slope of the indifference curve : Assuming that we plot movies on the horizontal axis and popcorn on the vertical axis, what is the slope of the indifference curve at the optimal bundle?
Identity of the culprit be taken into account : Law enforcement agencies apprehend the person who launched the attack. Should the punishment be determined strictly by considering the crime that was committed, or should the identity of the culprit be taken into account? If the identity of the pe..
Calculate the percent of office-based physicians : Use a bar chart to display the increase in the number of family practice physicians from 1990 to 2002. Calculate the percent of office-based physicians who are family practice physicians and then display this data in a bar chart.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Assignment-your recession strategy

Suppose that you are the chief economic advisor to the president of the United States. You are asked to propose a strategy to bring the economy out of recession. Unemployment is at 13 percent and inflation is relatively low. Your goal is to avoid ..

  What is jose cost recovery for 2011

Jose purchased a house for $300,000 in 2008. He used the house as his personal residence. In March 2011, when the fair market value of the house was $250,000, he converted the house to rental property. What is Jose's cost recovery for 2011?

  Prepare the partnership''s income statement

Prepare the partnership's income statement

  Compute cash receipts from customers

Ambrosia Inc. reported sales of $2 million for 2012. Accounts receivable decreased $150,000 and accounts payable increased $300,000. Compute cash receipts from customers, assuming that the receivable and payable transactions are related to operat..

  List the types of tests that can be performed

What kinds of audit tools are used to perform routine tests on electronic data files taken from databases? List the types of tests that can be performed with these tools.

  The balanced scorecard measures organizational performance

the balanced scorecard measures organizational performance along four dimensions. is it possible that measures on the

  Goods available for sale during the year

The beginning inventory was 300 units at a cost of $10 per unit. Goods available for sale during the year were 1,300 units at a total cost of $14,400.

  Journalize the transactions of october

Journalize the transactions of October 3, November 15, and December 22.

  Attributions-describe the fundamental attribution error

Examine the role of attributions in our social world. What are attributions, and how do we use them in our daily lives? Discuss the differences between internal and external attributions and describe the fundamental attribution error.

  Records its liabilities for employees'' vacations semiannuall

Assume that for the August 20 payroll, McFriend, Inc. (RE13-3) incurs the following payroll expenses:

  The nicholsen corporation issued

On July 1, 2009, the Nicholsen Corporation issued $300,000 of bonds, with a 13% face rate of interest, for $318,000.

  Determine the benefit derived from deductions for and from

bulldetermine the benefit derived from deductions for and from adjusted gross incomebulldetermine the special rules

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd