Question: 1. When a new partner is admitted by purchasing an interest from one or more of the existing partners, the total assets and the total

1. When a new partner is admitted by purchasing an interest from one or more of the existing partners, the total assets and the total owners' equity of the partnership are _____.

  1. increased
  2. decreased
  3. not affected
  4. None of these are correct

abcdc

2. The journal entry required to transfer capital of Partners A and B to Partner C would include _____.

  1. a debit to Partner C, Capital
  2. a credit to Partner C, Capital
  3. credits to Partner A, Capital, and Partner B, Capital
  4. None of these are correct

abcd

3. Before a new partner is admitted, the balances of a partnership's asset accounts should be stated at _____.

  1. book values
  2. current market values
  3. their current account balances
  4. None of these are correct

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

1. When a new partner is admitted by purchasing an interest from one or more of the existing partners, the total assets and the total owners' equity of the partnership are a. increased b. decreased...

Q:

A general partnership is an incorporated association of two or more people to pursue a business for profit as co-owners. True or False True False A partnership does not pay a business income tax. The...

Q:

When a new partner is admitted by purchasing an interest from one or more of the existing partners, the purchase price is recorded in the accounts of the partnership. True False

Q:

Question 2 0 When a partner is admitted through purchasing an interest from one or more current partners, the partnership's assets, liabilities, and total equity are unaffected. True False

Q:

When a partner is admitted through purchasing an interest from one or more current partners, the partnership's assets, liabilities, and total equity are unaffected. True______ or False________

Q:

Benefts pald to retred employees increases a. pension expense b. the plan assets . d. OC e None of the above u)In a partnership liquidation,losses are made in accordance with the a. partner's income...

Q:

Please answer all questions rewpectlvely Durling 2016 . Potwin witharew 530,000 and Pulbord with derw 594000 . seles for the vear ameonted to Siso,000 and expehars were 580,000 . Potvh and Rultod...

Q:

TRUE or FALSE (Please explain your answer so I can understand it better. Thanks!) 1. In the admission of a partner by purchase, any change in the value of partnership assets and liabilities up to the...

Q:

Damion Enterprises, Inc. has the following stockholders' equity section: Common stock, $10 par, 100,000 shares authorized, 20,000 shares issued and outstanding $200,000 Paid-in capital-common stock...

Q:

Multiple Choice 1. it is the change in the relation of the partners caused by any partner being disassociated from the business a. Formation b. Operation c. Dissolution d. Liquidation 2. Which of the...

Q:

Even though Poland has been committed to liberalizing its economy since the collapse of communism in 1989, significant vestiges of the old system still remain. Why do you think it has taken Poland so...

Q:

An auctioneer has k identical goods to sell. The seller has zero value for each good. There are n potential buyers, each with single-unit demand and IID private value ~ F[0,0]. Assume the marginal...

Q:

The basic "give and take" functions of a business have been grouped into transaction cycles. The cyde that includes the events of hiring employees and paying them is known as the financing cycle....

Q:

a=2 b= 0 c= 2 d=0 e=0 f=9 g=3 5. Draw the Network diagram for the following project. Estimate the Earliest start time and Latest finish time for each activity. If every day it cost 200 rials for this...