Info
Warning
Danger
/ Homework Answers / Accounting / 31) Lauren and Elizabeth partners. Lauren has a capital balance

Question

31) Lauren and Elizabeth are partners. Lauren has a capital balance of $125,000 and Elizabeth has a capital balance of $110,000. Harry invested $100,000 to acquire an ownership interest of 30%. The journal entry to record the receipt of Harry's contribution will:

A) decrease Lauren, Capital.

B) increase Elizabeth, Capital.

C) decrease Cash.

D) decrease Harry, Capital.

32) When an existing partner sells his interest to another party in a personal transaction:

A) it is considered a transaction between the partnership and the new party.

B) the old partnership will continue functioning, since the partner is replaced by another party without diluting the old partnership.

C) the journal entry simply debits the withdrawing partner's capital account and credits the new partner's capital.

D) the equity and assets in the balance sheet increase by the same amount.

Learning Objective 12-5

1) Whenever a partner mix in a partnership changes, the old partnership ceases to exist and a new partnership begins.

2) The death of a partner dissolves the partnership.

3) When a partner withdraws his interest for cash, the liabilities in the balance sheet remains unchanged.

4) If a withdrawing partner receives assets worth more than the book value of his equity, then he receives a bonus.

5) When a partner withdraws his interest in the partnership, both assets and equity will decrease.

6) If a withdrawing partner receives assets worth more than the book value of her equity, the capital accounts of the remaining partners decrease.

7) When a partner withdraws her equity for cash, the corresponding capital account will be closed.

8) When a partner dies, the partnership ceases to exist, and the deceased partner's estate will have o


Solution
5 (1 Ratings )

Solved
Accounting 1 Month Ago 45 Views
This Question has Been Answered!
Premium Content -

Unlimited Access

Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Better Grades!

Ask an Expert

Our Experts can answer your tough homework and study questions
124306 Accounting Questions Answered!
Post a Question

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

d
Let us boost your grade together!

Get 24/7 homework help from Experts

Let our knowledge be your backup

1

Submit your homework question or assignment

2

Receive a quote & Make the Payment

3

Sit Back & Relax to Earn Better Grades!

Drag files here or Browse your Device

Maximum file size 10MB
17,475 Accounting Questions Answered! Get Answer

We are The Best Because

  • On Time Delivery
  • Plagiarism ReportFree
  • Unlimited RevisionsFree
  • 100% Privacy & Confidential
  • 24/7 Live Chat Support
4.9 (16096 Ratings)
You can communicate directly with your expert until the solution quality is delivered to your complete satisfaction.
Looking for writing help?
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!