ADVANCED FINANCIAL ACCOUNTING IN
CANADA 1E NATHALIE JOHNSTONE
KRISTIE DEWALD CHERYL WILSON
SOLUTION MANUAL WITH TEST BANK
LATEST COMPREHENSIVE TEST PAPER
2026 COMPLETE ANSWERS ACCURATE
⫸ Cleary, Wasser, and Nolan formed a partnership on January 1, 20X1,
with investments of $100,000, $150,000, and $200,000, respectively.
For division of income, they agreed to (1) interest of 10% of the
beginning capital balance each year, (2) annual compensation of $10,000
to Wasser, and (3) sharing the remainder of the income or loss in a ratio
of 20% for Cleary, and 40% each for Wasser and Nolan. Net income
was $150,000 in 20X1 and $180,000 in 20X2. Each partner withdrew
$1,000 for personal use every month during 20X1 and 20X2.What was
Cleary's total share of net income for 20X1?
$63,000.
$53,000.
$58,000.
$29,000. Answer: 29,000
⫸ A partnership was formed on January 1 of the current year with the
following capital balances:
Bill $100,000
,Chelsea $150,000
Hillary $250,000
The partnership operating agreement stipulated that profits and losses
are allocated as follows:
Each partner is allocated interest equal to 10 percent of their beginning
capital balance.
Chelsea is allocated a $40,000 salary.
Any remaining profits or losses are allocated on a 2:3:5 basis.
Net income of $150,000 was earned the first year. Each partner is
allowed to withdraw up to $10,000 per year. Assuming that each partner
withdraws the maximum amount, what is each partner's capital account
balance at the end of the current year? Answer: C.112,000 213,000
295,000
⫸ Cleary, Wasser, and Nolan formed a partnership on January 1, 20X1,
with investments of $100,000, $150,000, and $200,000, respectively.
For division of income, they agreed to (1) interest of 10% of the
beginning capital balance each year, (2) annual compensation of $10,000
to Wasser, and (3) sharing the remainder of the income or loss in a ratio
of 20% for Cleary, and 40% each for Wasser and Nolan. Net income
was $150,000 in 20X1 and $180,000 in 20X2. Each partner withdrew
$1,000 for personal use every month during 20X1 and 20X2.What was
Cleary's capital balance at the end of 20X1?
$100,000.
, $117,000.
$119,000.
$129,000. Answer:
⫸ Cleary, Wasser, and Nolan formed a partnership on January 1, 20X1,
with investments of $100,000, $150,000, and $200,000, respectively.
For division of income, they agreed to (1) interest of 10% of the
beginning capital balance each year, (2) annual compensation of $10,000
to Wasser, and (3) sharing the remainder of the income or loss in a ratio
of 20% for Cleary, and 40% each for Wasser and Nolan. Net income
was $150,000 in 20X1 and $180,000 in 20X2. Each partner withdrew
$1,000 for personal use every month during 20X1 and 20X2.What was
Wasser's capital balance at the end of 20X1?
$150,000.
$160,000.
$165,000.
$213,000.
$201,000. Answer: $201,000.
⫸ Trump and Pence began a partnership in the current year. Trump
invested cash of $150,000 as well as inventory costing $30,000, but with
a current appraised value of $50,000. Pence contributed land with a
$60,000 book value and a $90,000 fair market value. The partnership
also accepted responsibility for a $70,000 note payable owed in
connection with the land. The partners agreed to begin operations with
equal capital balances.
CANADA 1E NATHALIE JOHNSTONE
KRISTIE DEWALD CHERYL WILSON
SOLUTION MANUAL WITH TEST BANK
LATEST COMPREHENSIVE TEST PAPER
2026 COMPLETE ANSWERS ACCURATE
⫸ Cleary, Wasser, and Nolan formed a partnership on January 1, 20X1,
with investments of $100,000, $150,000, and $200,000, respectively.
For division of income, they agreed to (1) interest of 10% of the
beginning capital balance each year, (2) annual compensation of $10,000
to Wasser, and (3) sharing the remainder of the income or loss in a ratio
of 20% for Cleary, and 40% each for Wasser and Nolan. Net income
was $150,000 in 20X1 and $180,000 in 20X2. Each partner withdrew
$1,000 for personal use every month during 20X1 and 20X2.What was
Cleary's total share of net income for 20X1?
$63,000.
$53,000.
$58,000.
$29,000. Answer: 29,000
⫸ A partnership was formed on January 1 of the current year with the
following capital balances:
Bill $100,000
,Chelsea $150,000
Hillary $250,000
The partnership operating agreement stipulated that profits and losses
are allocated as follows:
Each partner is allocated interest equal to 10 percent of their beginning
capital balance.
Chelsea is allocated a $40,000 salary.
Any remaining profits or losses are allocated on a 2:3:5 basis.
Net income of $150,000 was earned the first year. Each partner is
allowed to withdraw up to $10,000 per year. Assuming that each partner
withdraws the maximum amount, what is each partner's capital account
balance at the end of the current year? Answer: C.112,000 213,000
295,000
⫸ Cleary, Wasser, and Nolan formed a partnership on January 1, 20X1,
with investments of $100,000, $150,000, and $200,000, respectively.
For division of income, they agreed to (1) interest of 10% of the
beginning capital balance each year, (2) annual compensation of $10,000
to Wasser, and (3) sharing the remainder of the income or loss in a ratio
of 20% for Cleary, and 40% each for Wasser and Nolan. Net income
was $150,000 in 20X1 and $180,000 in 20X2. Each partner withdrew
$1,000 for personal use every month during 20X1 and 20X2.What was
Cleary's capital balance at the end of 20X1?
$100,000.
, $117,000.
$119,000.
$129,000. Answer:
⫸ Cleary, Wasser, and Nolan formed a partnership on January 1, 20X1,
with investments of $100,000, $150,000, and $200,000, respectively.
For division of income, they agreed to (1) interest of 10% of the
beginning capital balance each year, (2) annual compensation of $10,000
to Wasser, and (3) sharing the remainder of the income or loss in a ratio
of 20% for Cleary, and 40% each for Wasser and Nolan. Net income
was $150,000 in 20X1 and $180,000 in 20X2. Each partner withdrew
$1,000 for personal use every month during 20X1 and 20X2.What was
Wasser's capital balance at the end of 20X1?
$150,000.
$160,000.
$165,000.
$213,000.
$201,000. Answer: $201,000.
⫸ Trump and Pence began a partnership in the current year. Trump
invested cash of $150,000 as well as inventory costing $30,000, but with
a current appraised value of $50,000. Pence contributed land with a
$60,000 book value and a $90,000 fair market value. The partnership
also accepted responsibility for a $70,000 note payable owed in
connection with the land. The partners agreed to begin operations with
equal capital balances.
