财务会计英语专项培训(ppt 90页)

Chapter13,PartnershipsandLimitedLiabilityCorporations,Accounting,21stEditionWarrenReeveFess,PowerPointPresentationbyDouglasCloudProfessorEmeritusofAccountingPepperdineUniversity,Someoftheactionhasbeenautomated,soclickthemousewhenyouseethislightningboltinthelowerright-handcornerofthescreen.Youcanpointandclickanywhereonthescreen.,1.Describethebasiccharacteristicsofproprietorships,corporations,partnerships,andlimitedliabilitycorporation.2.Describeandillustratetheequityreportingforproprietorships,corporations,partnerships,andlimitedliabilitycorporations.3.Describeandillustratetheaccountingforformingapartnership.,Objectives,Afterstudyingthischapter,youshouldbeableto:,4.Describeandillustratetheaccountingfordividingthenetincomeandnetlossofapartnership.,Objectives,5.Describeandillustratetheaccountingforthedissolutionofapartnership.6.Describeandillustratetheaccountingforliquidationofapartnership.7.Describethelifecycleofabusiness,includingtheroleofventurecapitalists,initialpublicofferings,andunderwriters.,AlternativeFormsofBusinessEntities,AdvantagesEaseinorganizingLowcostoforganizing,DisadvantagesDifficultyinraisinglargeamountsofcapitalUnlimitedliability,Joes,ReviewofChapter1,Aproprietorshipisownedbyoneindividual.,AlternativeFormsofBusinessEntities,Acorporationisorganizedunderstateorfederalstatutesasaseparatelegalentity.,AdvantagesTheabilitytoobtainlargeamountsofresourcesbyissuingstocksLimitedliabilityfortheowners,DisadvantagesDoubletaxationMorecomplexityandregulations,AlternativeFormsofBusinessEntities,AbusinessmayorganizeasanSCorporation.TheIRSallowsincometopassthroughtheSCorporationtotheindividualstockholderwithoutthecorporationhavingtopaytaxontheincome.,AlternativeFormsofBusinessEntities,Apartnershipisanassociationoftwoormoreindividuals.,AdvantagesMorefinancialresourcesthanaproprietorshipAdditionalmanagementskills,AlternativeFormsofBusinessEntities,DisadvantagesLimitedlifeUnlimitedliabilityCo-ownershipofpartnershippropertyMutualagency,Apartnershipisanassociationoftwoormoreindividuals.,AlternativeFormsofBusinessEntities,Animportantrightofpartnersistoparticipateintheincomeofthepartnership.,AlternativeFormsofBusinessEntities,Eachpartnermustreporttheirshareofpartnershipincomeontheirpersonaltaxreturns.,AlternativeFormsofBusinessEntities,Apartnershipiscreatedbyacontract,knownasthepartnershipagreementorarticlesofpartnership.,AlternativeFormsofBusinessEntities,Avariantoftheregularpartnershipisalimitedpartnership.,Thisformofpartnershipallowspartnersthatarenotinvolvedintheoperationsofthepartnershiptoretainlimitedliability.,LimitedLiabilityCorporations,Combinestheadvantagesofthecorporateandpartnershipforms.Ownersaretermed“members”ratherthan“partners.”Membersmustcreateanoperatingagreement.LLCmayelecttobetreatedasapartnershipfortaxpurposes.,Continued,LimitedLiabilityCorporations,Unlessspecifiedintheoperatingagreement,LLCshavealimitedlife.MembersmayelectoperatingtheLLCasa“membermanaged”entity.LLCprovideslimitedliabilityforthemembers.LLCsmustfile“articlesoforganization”withstategovernmentalauthorities.,ComparisonofAlternateEntityCharacteristics,EaseofFormation,ComparisonofAlternateEntityCharacteristics,LegalLiability,ComparisonofAlternateEntityCharacteristics,Taxation,ComparisonofAlternateEntityCharacteristics,LimitationonLifeofEntity,ComparisonofAlternateEntityCharacteristics,EaseofRaisingCapital,EquityReportingforAlternativeEntityForms,Proprietorships,Proprietorshipsuseacapitalaccounttorecordinvestmentsbytheownerofthebusiness.Withdrawalsbytheownerarerecordedintheownersdrawingaccount.,EquityReportingforAlternativeEntityForms,Proprietorships,GreeneLandscapesStatementofOwnersEquityFortheyearendedDecember31,2006,DuncanGreene,capital,Dec.31,2005$345,000Netincome$79,000Lesswithdrawals35,000Increaseinownersequity44,000DuncanGreene,capital,Dec.31,2006$389,000,EquityReportingforAlternativeEntityForms,Corporations,Investmentsbystockholdersinthebusinessusecapitalstockaccounts,suchasCommonStockandPreferredStock.Dividendstoowners(stockholders)arerecordedbyadebittoRetainedEarnings.,EquityReportingforAlternativeEntityForms,Corporations,EquityReportingforAlternativeEntityForms,PartnershipsandLimitedLiabilityCorporations,Investmentsandwithdrawalsforpartnershipsissimilartoproprietorships,exceptthereisacapitalanddrawingaccountforeachpartner.Limitedliabilitycorporationsaresimilartoapartnershipexceptthateachownerisreferredtoas“member.”,EquityReportingforAlternativeEntityForms,Partnerships,FormingaPartnership,JosephStevensandEarlFosteragreetocombinetheirhardwarebusinessesinapartnership.Theyagreethatthepartnershipistoassumetheliabilitiesoftheseparatebusinesses.,StevensTransferofAssets,Liability,andEquity,FormingaPartnership,Asimilarentrywouldbemadefortheassets,liabilities,andequityofEarlFoster.,FormingaPartnership,Assumethatinsteadofformingapartnership,thetwomenformedalimitedliabilitycorporation.,StevensTransferofAssets,Liability,andEquity,DividingIncome,ServicesofPartners,ThepartnershipagreementofJenniferStoneandCrystalMillsprovidesforStonetohaveanannualsalaryallowanceof$30,000andMillsistoreceive$24,000.Anynetincomeistobedividedequally.Thefirmhadanetincomeof$75,000.,J.StoneC.MillsTotal,Salaryallowance$30,000$24,000$54,000Remainingincome10,50010,50021,000,DividingIncome,ServicesofPartners,DividingIncome,LLCAlternative,DividingIncome,ServicesofPartnersandInvestments,ThepartnershipagreementofJenniferStoneandCrystalMillsprovidesforStonetohaveanannualsalaryallowanceof$30,000andMillsistoreceive$24,000.Interestof12%isprovidedoneachpartnerscapitalbalanceonJanuary1.Anynetincomeistobedividedequally.Thefirmhadanetincomeof$75,000.,DividingIncome,ServicesofPartnersandInvestments,J.StoneC.MillsTotal,Salaryallowance$30,000$24,000$54,000Interestallowance9,6007,20016,800,$80,000 x12%,$60,000 x12%,Remainingincome2,1002,1004,200,DividingIncome,ServicesofPartners,DividingIncome,LLCAlternative,DividingIncome,AllowancesExceedNetIncome,Assumethesamefactsasbeforeexceptthatthenetincomeisonly$50,000.,J.StoneC.MillsTotal,Salaryallowance$30,000$24,000$54,000Interestallowance9,6007,20016,800Total$39,600$31,200$70,800,Deductexcessequally10,40010,40020,800,PartnershipDissolution,AdmittingaPartner,1.Purchasinganinterestfromoneormoreofthecurrentpartners.2.Contributingassetstothepartnership.,Apersonmaybeadmittedtoapartnershiponlywiththeconsentofallpartnersby:,PartnershipDissolution,PurchasinganInterestinaPartnership,PartnersTomAndrewsandNathanBellhavecapitalbalancesof$50,000each.OnJune1,eachsellsone-fifthofhisequitytoJoeCanterfor$10,000incash.,PartnershipDissolution,PurchasinganInterestinaPartnership,ForaLLC,membersequityaccountswouldhavebeenusedratherthancapitalaccounts.,PartnershipDissolution,ContributingAssetstoaPartnership,PartnersDonaldLewisandGeraldMortonhavecapitalbalancesof$35,000and$25,000,respectively.OnJune1,SharonNelsonjoinsthepartnershipbypermissionandmakesaninvestmentof$20,000cash.,PartnershipDissolution,ContributingAssetstoaPartnership,ForaLLC,SharonNelson,MemberEquitywouldhavebeencredited.,PartnershipDissolution,RevaluationofAssets,PartnersDonaldLewisandGeraldMortonhavecapitalbalancesof$35,000and$25,000,respectively.ThebalanceinMerchandiseInventoryis$14,000andthecurrentreplacementvalueis$17,000.Thepartnerssharenetincomeequally.,PartnershipDissolution,BecausetheLLCalternativefollowsapatternofreplacing“Capital”with“MemberEquity,”theLLCentrywillnotbeshownagain.,RevaluationofAssets,PartnershipDissolution,PartnerBonuses,OnMarch1,thepartnershipofMarshaJenkinsandHelenKrameradmitAlexDiazasanewpartner.TheassetsoftheoldpartnershipareadjustedtoafairmarketvaluesandtheresultingcapitalbalancesforJenkinsandKramerare$30,000and$24,000,respectively.,PartnershipDissolution,PartnerBonuses,JenkinsandKrameragreetoadmitDiazasapartnerfor$31,000.Inreturn,Diazwillreceiveaone-thirdequityinthepartnershipandwillshareincomeandlossesequallywithJenkinsandKramer.,PartnershipDissolution,PartnerBonusesfromNewPartner,EquityofJenkins$20,000EquityofKramer24,000DiazsContribution31,000TotalequityafteradmittingDiaz$75,000Diazsinterest(1/3x$75,000)$25,000,Diazscontribution$31,000Diazsequityafteradmission25,000BonuspaidtoJenkinsandKramer$6,000,PartnershipDissolution,PartnerBonuses,$60002,PartnershipDissolution,PartnerBonuses,Afteradjustingthemarketvalues,thecapitalbalanceofJaniceCowenis$80,000andthecapitalbalanceofSteveDoddis$40,000.EllenChuareceivesaone-fourthinterestinthepartnershipforacontributionof$30,000.BeforeadmittingChua,CowenandDoddsharednetincomeusinga2to1ratio.,PartnershipDissolution,PartnerBonusestoNewPartner,EquityofCowen$80,000EquityofDodd40,000ChuasContribution30,000TotalequityafteradmittingChua$150,000Chuasinterest(1/4x$150,000)$37,500,Chuascontribution$30,000Chuasequityafteradmission37,500BonuspaidtoChua$7,500,PartnershipDissolution,PartnerBonuses,1/3x$7,500,2/3x$7,500,LiquidatingPartnerships,Whenapartnershipgoesoutofbusiness,thewinding-upprocessiscalledtheliquidationofapartnership.,LiquidatingPartnerships,Thesaleoftheassetsiscalledrealization.,LiquidatingPartnerships,Farley,Greene,andHallshareincomeandlossesinaratioof5:3:2.OnApril9,afterdiscontinuingoperations,thefirmhadthefollowingtrialbalance.,LiquidatingPartnerships,BetweenApril10andApril30,2006,Farley,Greene,andHallsellallnoncashassetsfor$72,000.,GainonRealization,LiquidatingPartnerships,Balancebeforerealization$11,000$64,000$9,000,Leftsideofstatement,NoncashCashAssetsLiabilities,Saleofassetsanddivisionofgain+72,000-64,000,LiquidatingPartnerships,Balancebeforerealization$22,000$22,000$22,000,Rightsideofstatement,FarleyGreeneHallCapitalCapitalCapital,Saleofassetsanddivisionofgain+4,000+2,400+1,600,$8,000gainx.50,$8,000gainx.30,$8,000gainx.20,LiquidatingPartnerships,Balancebeforerealization$11,000$64,000$9,000,Leftsideofstatement,NoncashCashAssetsLiabilities,Saleofassetsanddivisionofgain+72,00064,000Balanceafterrealization$83,000$0$9,000,LiquidatingPartnerships,Balancebeforerealization$22,000$22,000$22,000,Rightsideofstatement,FarleyGreeneHallCapitalCapitalCapital,Saleofassetsanddivisionofgain+4,000+2,400+1,600Balanceafterrealization$26,000$24,400$23,600,LiquidatingPartnerships,Thepartnershipsliabilitiesarepaid,$9,000.,GainonRealization,LiquidatingPartnerships,Leftsideofstatement,NoncashCashAssetsLiabilities,Paymentofliabilities9,0009,000,LiquidatingPartnerships,Leftsideofstatement,LiquidatingPartnerships,Theremainingcash,$74,000,ispaidtoeachpartnerinaccordancewiththepartnerscapitalbalance.,GainonRealization,LiquidatingPartnerships,Leftsideofstatement,Paymentofliabilities9,0009,000Balanceafterpayment$74,000$0$0,Partnerscashdistributed74,000Finalbalances$0$0$0,LiquidatingPartnerships,Rightsideofstatement,Partnerscashdistributed26,00024,40023,600Finalbalances$0$0$0,LiquidatingPartnerships,SaleofAssets,LiquidatingPartnerships,DivisionofGain,LiquidatingPartnerships,PaymentofLiabilities,LiquidatingPartnerships,DistributionofCashtoPartners,LiquidatingPartnerships,BetweenApril10andApril30,2006,Farley,Greene,andHallsellallnoncashassetsfor$44,000.,LossonRealization,LiquidatingPartnerships,Balancebeforerealization$11,000$64,000$9,000,Leftsideofstatement,NoncashCashAssetsLiabilities,Saleofassetsanddivisionofloss+44,00064,000,LiquidatingPartnerships,Balancebeforerealization$22,000$22,000$22,000,Rightsideofstatement,FarleyGreeneHallCapitalCapitalCapital,Saleofassetsanddivisionofloss10,0006,0004,000,$20,000lossx.50,$20,000lossx.30,$20,000lossx.20,LiquidatingPartnerships,Balancebeforerealization$11,000$64,000$9,000,Leftsideofstatement,NoncashCashAssetsLiabilities,Saleofassetsanddivisionofloss+44,00064,000Balanceafterrealization$55,000$0$9,000,LiquidatingPartnerships,Balancebeforerealization$22,000$22,000$22,000,Rightsideofstatement,FarleyGreeneHallCapitalCapitalCapital,Saleofassetsanddivisionofloss10,0006,0004,000Balanceafterrealization$12,000$16,000$18,000,LiquidatingPartnerships,Theliabilitiesofthepartnershiparepaid,$9,000.,LossonRealization,LiquidatingPartnerships,Leftsideofstatement,NoncashCashAssetsLiabilities,Paymentofliabilities9,0009,000,LiquidatingPartnerships,Leftsideofstatement,LiquidatingPartnerships,Theremainingcash,$46,000,ispaidtoeachpartnerinaccordancewiththepartnerscapitalbalance.,LossonRealization,LiquidatingPartnerships,Leftsi