财务会计英语ch13

Chapter13PartnershipsandLimitedLiabilityCorporationsAccounting,21stEditionWarrenReeveFessPowerPointPresentationbyDouglasCloudProfessorEmeritusofAccountingPepperdineUniversity©Copyright2004South-Western,adivisionofThomsonLearning.Allrightsreserved.TaskForceImageGalleryclipartincludedinthiselectronicpresentationisusedwiththepermissionofNVTechInc.Someoftheactionhasbeenautomated,soclickthemousewhenyouseethislightningboltinthelowerright-handcornerofthescreen.Youcanpointandclickanywhereonthescreen.1.Describethebasiccharacteristicsofproprietorships,corporations,partnerships,andlimitedliabilitycorporation.2.Describeandillustratetheequityreportingforproprietorships,corporations,partnerships,andlimitedliabilitycorporations.3.Describeandillustratetheaccountingforformingapartnership.ObjectivesAfterstudyingthischapter,youshouldbeableto:4.Describeandillustratetheaccountingfordividingthenetincomeandnetlossofapartnership.Objectives5.Describeandillustratetheaccountingforthedissolutionofapartnership.6.Describeandillustratetheaccountingforliquidationofapartnership.7.Describethelifecycleofabusiness,includingtheroleofventurecapitalists,initialpublicofferings,andunderwriters.AlternativeFormsofBusinessEntitiesAdvantages•Easeinorganizing•LowcostoforganizingDisadvantages•Difficultyinraisinglargeamountsofcapital•UnlimitedliabilityJoe’sReviewofChapter1Aproprietorshipisownedbyoneindividual.AlternativeFormsofBusinessEntitiesAcorporationisorganizedunderstateorfederalstatutesasaseparatelegalentity.Advantages•Theabilitytoobtainlargeamountsofresourcesbyissuingstocks•LimitedliabilityfortheownersDisadvantages•Doubletaxation•MorecomplexityandregulationsJ&M,Inc.AlternativeFormsofBusinessEntitiesJ&M,Inc.AbusinessmayorganizeasanSCorporation.TheIRSallowsincometopassthroughtheSCorporationtotheindividualstockholderwithoutthecorporationhavingtopaytaxontheincome.AlternativeFormsofBusinessEntitiesApartnershipisanassociationoftwoormoreindividuals.Advantages•Morefinancialresourcesthanaproprietorship•AdditionalmanagementskillsJoeandMarty’sAlternativeFormsofBusinessEntitiesDisadvantages•Limitedlife•Unlimitedliability•Co-ownershipofpartnershipproperty•MutualagencyJoeandMarty’sApartnershipisanassociationoftwoormoreindividuals.AlternativeFormsofBusinessEntitiesAnimportantrightofpartnersistoparticipateintheincomeofthepartnership.AlternativeFormsofBusinessEntitiesEachpartnermustreporttheirshareofpartnershipincomeontheirpersonaltaxreturns.AlternativeFormsofBusinessEntitiesApartnershipiscreatedbyacontract,knownasthepartnershipagreementorarticlesofpartnership.AlternativeFormsofBusinessEntitiesAvariantoftheregularpartnershipisalimitedpartnership.Thisformofpartnershipallowspartnersthatarenotinvolvedintheoperationsofthepartnershiptoretainlimitedliability.LimitedLiabilityCorporationsCombinestheadvantagesofthecorporateandpartnershipforms.Ownersaretermed“members”ratherthan“partners.”Membersmustcreateanoperatingagreement.LLCmayelecttobetreatedasapartnershipfortaxpurposes.ContinuedLimitedLiabilityCorporationsUnlessspecifiedintheoperatingagreement,LLCshavealimitedlife.MembersmayelectoperatingtheLLCasa“membermanaged”entity.LLCprovideslimitedliabilityforthemembers.LLCsmustfile“articlesoforganization”withstategovernmentalauthorities.ComparisonofAlternateEntityCharacteristicsEaseofFormationProprietorshipSimpleCorporationComplexPartnershipSimpleLLCModerateComparisonofAlternateEntityCharacteristicsLegalLiabilityProprietorshipNolimitationCorporationLimitedliabilityPartnershipNolimitationLLCLimitedliabilityComparisonofAlternateEntityCharacteristicsTaxationProprietorshipNontaxableentityCorporationTaxableentityPartnershipNontaxableentityLLCNontaxableentitybyelectionComparisonofAlternateEntityCharacteristicsLimitationonLifeofEntityProprietorshipYesCorporationNoPartnershipYesLLCYesComparisonofAlternateEntityCharacteristicsEaseofRaisingCapitalProprietorshipDifficultCorporationEasierPartnershipModerateLLCModerateEquityReportingforAlternativeEntityFormsProprietorshipsProprietorshipsuseacapitalaccounttorecordinvestmentsbytheownerofthebusiness.Withdrawalsbytheownerarerecordedintheowner’sdrawingaccount.EquityReportingforAlternativeEntityFormsProprietorshipsGreeneLandscapesStatementofOwner’sEquityFortheyearendedDecember31,2006DuncanGreene,capital,Dec.31,2005$345,000Netincome$79,000Lesswithdrawals35,000Increaseinowner’sequity44,000DuncanGreene,capital,Dec.31,2006$389,000EquityReportingforAlternativeEntityFormsCorporationsInvestmentsbystockholdersinthebusinessusecapitalstockaccounts,suchasCommonStockandPreferredStock.Dividendstoowners(stockholders)arerecordedbyadebittoRetainedEarnings.EquityReportingforAlternativeEntityFormsCorporationsEquityReportingforAlternativeEntityFormsPartnershipsandLimitedLiabilityCorporationsInvestmentsandwithdrawalsforpartnershipsissimilartoproprietorships,exceptthereisacapitalanddrawingaccountforeachpartner.Limitedliabilitycorporationsaresimilartoapartnershipexceptthateachownerisreferredtoas“member.”EquityReportingforAlternativeEntityFormsPartnerships