CHICAGO STATE UNIVERSITY ACC4315 ADVANCED ACCOUNTING CHAPTERS 15 & 16 QUIZ – SPRING 201ACCOUNTING

| November 24, 2016

Question
Name ________________________________________
CHICAGO STATE UNIVERSITY
ACCOUNTING 4315 ADVANCED ACCOUNTING
CHAPTERS 15 & 16 QUIZ – SPRING 2015
1.

Roe, Soh, & Tow Limited Liability Partnership was organized and began operations on
February 1, 2010, with the following capital account balances: Roe, $50,000; Soh, $70,000;
Tow, $80,000. The income-sharing arrangement provided for the following:
Roe
Soh
Tow
Annual salary (to be recognized as partnership
expense and withdrawable in cash)
$40,000 $60,000 $50,000
Interest on beginning-of-year capital account balances 6%
6%
6%
Residual income or loss
25%
40%
35%
For the fiscal year ended January 31, 2011, Roe, Soh, & Tow Limited Liability Partnership had
income of $180,000, before recognition of salaries expense, and the partners withdrew their
authorized salaries in cash.
Prepare income sharing schedule for Roe, Soh, & Tow Limited Liability Partnership on January
31, 2011.

2.
1

The partners of Bentsen & Cole LLP had capital account balances of $45,000 and $25,000,

respectively. They shared net income and losses in a 3:1 ratio. Prepare journal entries to record
the admission of Diaz to the limited liability partnership under the bonus method.
a.

b.

3.
2

Diaz invested $30,000 cash for a 25% interest in the net assets of the partnership.

Diaz invested $10,000 cash for a 25% interest in the net assets of the partnership.

After realization of a portion of the noncash assets of Bemis, Coppo & Dipp LLP, which was
being liquidated, the capital account balances were Bemis, $54,600; Coppo, $40,500; and Dipp,

$17,000. Cash of $34,100 and other assets with a carrying amount of $98,000 were on hand.
Creditors’ claims totaled $20,000. Bemis, Coppo and Dipp shared net income and losses in a
2:1:1 ratio, respectively.
Prepare a working paper to compute the amount of cash that may be paid to creditors and to
partners at this time, assuming that no partner is solvent

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