Introduction to Accounting Chapter 12

CHAPTER 12
Accounting for Partnerships
ASSIGNMENT CLASSIFICATION TABLE
Brief Exercises A Problems B Problems

Study Objectives 1. Identify the characteristics of the partnership form of business organization. 2. Explain the accounting entries for the formation of a partnership. 3. Identify the bases for dividing net income or net loss. 4. Describe the form and content of partnership financial statements. 5. Explain the effects of the entries to record the liquidation of a partnership. *6. Explain the effects of the entries when a new partner is admitted. *7. Describe the effects of the entries when a partner withdraws from the firm.

Questions 1, 2, 3, 4, 12

Exercises 1

5

1, 2

2, 3

1A

1B

6, 7, 8, 9, 10

3, 4, 5

4, 5

2A

2B

11

6, 7

1A, 2A

1B, 2B

12, 13, 14, 15, 16

6

8, 9, 10

3A

3B

17, 18, 19, 20

7, 8

11, 12, 15

4A

4B

20, 21, 22, 23

9, 10

13, 14, 15

5A

5B

*Note: All asterisked Questions, Exercises, and Problems relate to material contained in the appendix*to the chapter.

12-1

ASSIGNMENT CHARACTERISTICS TABLE
Problem Number Description 1A Prepare entries for formation of a partnership and a balance sheet. Journalize divisions of net income and prepare a partners’ capital statement. Prepare entries with a capital deficiency in liquidation of a partnership Journalize admission of a partner under different assumptions. Journalize withdrawal of a partner under different assumptions. Prepare entries for formation of a partnership and a balance sheet. Journalize divisions of net income and prepare a partners’ capital statement. Prepare entries and schedule of cash payments in liquidation of a partnership. Journalize admission of a partner under different assumptions. Journalize withdrawal of a partner under different assumptions. Difficulty Level Simple Time Allotted (min.) 20–30

2A

Moderate

30–40

3A

Moderate

30–40

*4A

Moderate

30–40

*5A