E12-1 Mark Rensing has p ing has prepared the following list of statements about partnerships. bin is an association of three or more persons to carry on as co-owners of a business for profit. 2. The legal requirements 5. The act of any partner is bin uirements for forming a partnership can be quite burdensome. artnership is not an entity for financial report fa partnership is taxed as a separate entity. The net income of a partnership is taxed ny partner is binding on all other partners, even when partners perform business acts beyond the scope of their authority artner is personally and individually liable for all partnership liabilities. a partnership is dissolved, the assets legally revert to the original contributor. limited partnership, one or more partners have unlimited liability and one or more partners have limited liability for the debts of the firm. Mutual agency is a major advantage of the partnership form of business. 6. Each partner is personally 7. When a partnership is dissolve Instructions Identify each statement as true or false. If false, indicate how to correct the statement. EXERCISES ra cash BE14-1 Greenwood Corporation has 80,000 shares of common stock ou declares a $1 per share cash dividend on November 1 to stockholders of reco ber 1. The dividend is paid on December 31. Prepare the entries on the app to record the declaration and payment of the cash dividend. ick outstanding. It of record on Decem. on the appropriate dates