《《精编》Partnerships and Limited Liability Corporations》由会员分享，可在线阅读，更多相关《《精编》Partnerships and Limited Liability Corporations（89页珍藏版）》请在金锄头文库上搜索。
1、Chapter13 PartnershipsandLimitedLiabilityCorporations Accounting 21stEditionWarrenReeveFess PowerPointPresentationbyDouglasCloudProfessorEmeritusofAccountingPepperdineUniversity Someoftheactionhasbeenautomated soclickthemousewhenyouseethislightningboltinthelowerright handcornerofthescreen Youcanpoin
2、tandclickanywhereonthescreen 1 Describethebasiccharacteristicsofproprietorships corporations partnerships andlimitedliabilitycorporation 2 Describeandillustratetheequityreportingforproprietorships corporations partnerships andlimitedliabilitycorporations 3 Describeandillustratetheaccountingforformin
3、gapartnership Objectives Afterstudyingthischapter youshouldbeableto 4 Describeandillustratetheaccountingfordividingthenetincomeandnetlossofapartnership Objectives 5 Describeandillustratetheaccountingforthedissolutionofapartnership 6 Describeandillustratetheaccountingforliquidationofapartnership 7 De
4、scribethelifecycleofabusiness includingtheroleofventurecapitalists initialpublicofferings andunderwriters AlternativeFormsofBusinessEntities AdvantagesEaseinorganizingLowcostoforganizing DisadvantagesDifficultyinraisinglargeamountsofcapitalUnlimitedliability Joe s ReviewofChapter1 Aproprietorshipiso
5、wnedbyoneindividual AlternativeFormsofBusinessEntities Acorporationisorganizedunderstateorfederalstatutesasaseparatelegalentity AdvantagesTheabilitytoobtainlargeamountsofresourcesbyissuingstocksLimitedliabilityfortheowners DisadvantagesDoubletaxationMorecomplexityandregulations AlternativeFormsofBus
6、inessEntities AbusinessmayorganizeasanSCorporation TheIRSallowsincometopassthroughtheSCorporationtotheindividualstockholderwithoutthecorporationhavingtopaytaxontheincome AlternativeFormsofBusinessEntities Apartnershipisanassociationoftwoormoreindividuals AdvantagesMorefinancialresourcesthanapropriet
7、orshipAdditionalmanagementskills AlternativeFormsofBusinessEntities DisadvantagesLimitedlifeUnlimitedliabilityCo ownershipofpartnershippropertyMutualagency Apartnershipisanassociationoftwoormoreindividuals AlternativeFormsofBusinessEntities Animportantrightofpartnersistoparticipateintheincomeofthepa
8、rtnership AlternativeFormsofBusinessEntities Eachpartnermustreporttheirshareofpartnershipincomeontheirpersonaltaxreturns AlternativeFormsofBusinessEntities Apartnershipiscreatedbyacontract knownasthepartnershipagreementorarticlesofpartnership AlternativeFormsofBusinessEntities Avariantoftheregularpa
9、rtnershipisalimitedpartnership Thisformofpartnershipallowspartnersthatarenotinvolvedintheoperationsofthepartnershiptoretainlimitedliability LimitedLiabilityCorporations Combinestheadvantagesofthecorporateandpartnershipforms Ownersaretermed members ratherthan partners Membersmustcreateanoperatingagre
10、ement LLCmayelecttobetreatedasapartnershipfortaxpurposes Continued LimitedLiabilityCorporations Unlessspecifiedintheoperatingagreement LLCshavealimitedlife MembersmayelectoperatingtheLLCasa membermanaged entity LLCprovideslimitedliabilityforthemembers LLCsmustfile articlesoforganization withstategov
11、ernmentalauthorities ComparisonofAlternateEntityCharacteristics EaseofFormation ComparisonofAlternateEntityCharacteristics LegalLiability ComparisonofAlternateEntityCharacteristics Taxation ComparisonofAlternateEntityCharacteristics LimitationonLifeofEntity ComparisonofAlternateEntityCharacteristics
12、 EaseofRaisingCapital EquityReportingforAlternativeEntityForms Proprietorships Proprietorshipsuseacapitalaccounttorecordinvestmentsbytheownerofthebusiness Withdrawalsbytheownerarerecordedintheowner sdrawingaccount EquityReportingforAlternativeEntityForms Proprietorships GreeneLandscapesStatementofOw
13、ner sEquityFortheyearendedDecember31 2006 DuncanGreene capital Dec 31 2005 345 000Netincome 79 000Lesswithdrawals35 000Increaseinowner sequity44 000DuncanGreene capital Dec 31 2006 389 000 EquityReportingforAlternativeEntityForms Corporations Investmentsbystockholdersinthebusinessusecapitalstockacco
14、unts suchasCommonStockandPreferredStock Dividendstoowners stockholders arerecordedbyadebittoRetainedEarnings EquityReportingforAlternativeEntityForms Corporations EquityReportingforAlternativeEntityForms PartnershipsandLimitedLiabilityCorporations Investmentsandwithdrawalsforpartnershipsissimilartop
15、roprietorships exceptthereisacapitalanddrawingaccountforeachpartner Limitedliabilitycorporationsaresimilartoapartnershipexceptthateachownerisreferredtoas member EquityReportingforAlternativeEntityForms Partnerships FormingaPartnership JosephStevensandEarlFosteragreetocombinetheirhardwarebusinessesin
16、apartnership Theyagreethatthepartnershipistoassumetheliabilitiesoftheseparatebusinesses Stevens TransferofAssets Liability andEquity FormingaPartnership Asimilarentrywouldbemadefortheassets liabilities andequityofEarlFoster FormingaPartnership Assumethatinsteadofformingapartnership thetwomenformedalimitedliabilitycorporation Stevens TransferofAssets Liability andEquity DividingIncome ServicesofPartners ThepartnershipagreementofJenniferStoneandCrystalMillsprovidesforStonetohaveanannualsalaryallow
