Lecture Accounting principles (11E): Chapter 12 - Coby Harmon

Prepared by<br /> Coby Harmon<br /> University of California, Santa Barbara<br /> Westmont College<br /> <br /> 12-1<br /> <br /> 12<br /> <br /> Accounting for<br /> Partnerships<br /> <br /> Learning Objectives<br /> After studying this chapter, you should be able to:<br /> [1] Identify the characteristics of the partnership form of business<br /> organization.<br /> [2] Explain the accounting entries for the formation of a partnership.<br /> [3] Identify the bases for dividing net income or net loss.<br /> [4] Describe the form and content of partnership financial statements.<br /> [5] Explain the effects of the entries to record the liquidation of a partnership.<br /> <br /> 12-2<br /> <br /> Preview of Chapter 12<br /> <br /> Accounting Principles<br /> Eleventh Edition<br /> Weygandt Kimmel Kieso<br /> 12-3<br /> <br /> Partnership Form of Organization<br /> Partnership, an association of two or more persons to<br /> carry on as co-owners of a business for profit.<br /> Type of Business:<br /> <br /> <br /> <br /> 12-4<br /> <br /> Small retail, service, or manufacturing companies.<br /> Accountants, lawyers, and doctors.<br /> <br /> LO 1 Identify the characteristics of the partnership<br /> form of business organization.<br /> <br /> Partnership Form of Organization<br /> Characteristics of Partnerships<br /> Association of Individuals<br /> <br /> <br /> Legal entity.<br /> <br /> <br /> <br /> Accounting entity.<br /> <br /> <br /> <br /> Net income not taxed as a separate entity.<br /> <br /> Mutual Agency<br /> <br /> <br /> 12-5<br /> <br /> Act of any partner is binding on all other partners, so long<br /> as the act appears to be appropriate for the partnership.<br /> <br /> LO 1 Identify the characteristics of the partnership<br /> form of business organization.<br /> <br />