Questions from Financial Accounting

Q: What are the main advantages of (a) Proprietorships,

What are the main advantages of (a) Proprietorships, (b) Partnerships, and (c) Limited liability companies?

Q: Emilio Alvarez and Graciela Zavala joined together to form a partnership.

Emilio Alvarez and Graciela Zavala joined together to form a partnership. Is it possible for them to lose a greater amount than the amount of their investment in the partnership? Explain.

Q: Breakin Away Company has three employees—a consultant, a computer

Breakin Away Company has three employees—a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: For the curren...

Q: Myles Etter and Crystal Santori are partners who share in the income

Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $210,000 and $62,500, respectively. Etter, with the consent of Santori, sells one-third of his...

Q: The capital accounts of Trent Henry and Tim Chou have balances of

The capital accounts of Trent Henry and Tim Chou have balances of $160,000 and $100,000, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of...

Q: After the tangible assets have been adjusted to current market prices,

After the tangible assets have been adjusted to current market prices, the capital accounts of Brad Paulson and Drew Webster have balances of $45,000 and $60,000, respectively. Austin Neel is to be ad...

Q: Alpha Sounds Corp., an electric guitar retailer, was organized by

Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 1,000,000 shares of common stock with a par of $1. The follow...

Q: Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services

Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to current ma...

Q: Alert Medical, LLC, consists of two doctors, Abrams and

Alert Medical, LLC, consists of two doctors, Abrams and Lipscomb, who share in all income and losses according to a 2:3 income-sharing ratio. Dr. Lin has been asked to join the LLC. Prior to admitting...

Q: L. Bowers and V. Lipscomb are partners in Elegant Event

L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was reval...