Reference no: EM133027344

Questions -

Q1. Statement 1: Joint control is present if two or more parties have greater than 50% control. Statement 2: One party has more than 50% in a joint arrangement.

Both statements are false

Both statements are true

S1 True; S2 False

S2 True; S1 False

Q2. Anna, Bobby, and Gerry are partners who have capital balances of $480,000, $500,000 and $180,000 respectively. Profit or loss is distributed in the ratio of 4:2:1. Bobby received $260,000 as a result of liquidating the partnership when 60% of the noncash assets of the partnership is realized. The partnership has total assets totaling to $500,000 including $50,000 cash before liquidation. The partnership also incurred $35,000 liquidation expenses and withheld $28,000 for the unpaid liabilities of the partnership. How much is the loss on realization of noncash assets?

Q3. Partners Alyssa and May divide profits and losses 6:4 with capital balances of $540,000 and $670,000 respectively. They agreed to admit Nica by her purchase of 1/4 of Alyssa's interest for $300,000. They agreed to write off Accounts Receivable worth $10,600. Fixed assets were under-depreciated by $30,000. Payments of accounts payable in the amount of $8,600 was not posted to the payable account. How much should be debited to Alyssa's interest?

Q4. Juanda and Poppy are partners who share profits and losses in the ratio of 3:2 respectively. Juanda's salary is $180,000 and Poppy's is $140,000. The partners are paid interest on their average capital balances where Juanda received interest of $30,000 and Poppy, $15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. If Juanda received $280,000 from partnership income, how much was the total partnership income?

Q5. Blake, Paris, and Myra formed a partnership. Their capital balances showed the following: Blake, Capital - $252,000; Paris, Capital - $126,000; Myra, Capital - $42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20% of their interest to Vanya for a total payment of $120,000. Vanya will pay the money directly to the other partners. What amount was the bonus debited or credited in partner Blake's capital account?