Debra and Merina sell electronic equipment and supplies through their partnership. They wish to expand their computer lines and decide to admit Wayne to the partnership. Debra's capital is $200,000, Merina's capital is $160,000, and they share income in a ratio of 3:2, respectively.Required:Record Wayne's admission for each of the following independent situations:a. Wayne directly purchases half of Merina's investment in the partnership for $97,000.b. Wayne invests the amount needed to give him a one-third interest in the partnership's capital if no goodwill or bonus is recorded.
Answers
Answer:
a. Merina's captal is $160,000. Half would be $80,000.
Entry;
DR Merina, Capital ..................................................................$80,000
CR Wayne, Capital ....................................................................................$80,000
(To record purchase of half of Merina Capital)
b.
DR Cash......................................................................$180,000
CR Wayne, Capital.........................................................................$180,000
(To record Wayne investment)
Working
The current Capital amount is;
= 200,000 +160,000
= $360,000
If Wayne joins and adds to this such that he owns 1/3 then;
2/3x = 360,000
x = 360,000/2/3
x = $540,000
Wayne's share would be;
= 1/3 * 540,000
= $180,000
The journal entries that would take place will take effect as A- A debit in Merina's capital amount and Cash account as $17000 and a credit effect in Wayne's capital account. The amount of debit and credit will be $97000.
And for B- There will be Debit in Cash account effecting a credit in The Wayne's capital account. The amount effecting the debit and credit side will be $180,000.
The journal entries are added in the images attached to the answer. The entries would take place in the journal entries on the respective date of their occurrence.( Image attached below).When Wayne is introduced as partner for one third share the calculation of the amount of his capital would be shown as considering the capital as x. The capital by existing partners is $360000. (Image below).,[tex]\dfrac{2}{3}x\ = 360000[/tex]
[tex]x= \dfrac {360000}{\dfrac{2}{3}}[/tex]
Now the value of x will be calculated as
[tex]x= \dfrac{540000}{3}[/tex]
[tex]x=180000[/tex]
Therefore Wayne's capital will be calculated as $180,000, so he will be required to bring in additional $180,000 capital in the firm for getting one third share in the profits and losses of the company.Hence, the correct statements for A will be that Wayne pays $97000 which will be divided in Merina's capital and cash accounts in the proportion of $80000 and $17000 respectively.
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Related Questions
What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?
Answers
Complete Question:
What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?
Group of answer choices.
A. Highway
B. Rail
C. Water
D. Pipeline
E. Air
Answer:
D. Pipeline.
Explanation:
Pipeline transportation can be defined as the long-distance transportation of consumer fluid products such as liquefied natural gases or crude oil, through a system of interconnected pipes.
As a result of the long distance being covered, pipeline transportation mode has very high initial investment costs because it requires excavation of the soil to enable the laying of pipes running into several miles.
However, the advantage of the pipeline transportation mode is that it gives a very low cost per mile for products that are highly specialized and require no packaging.
A regulated Natural Monopoly is more likely to advertise freely under which of the following types of regulation?
a) price regulation
b) profit regulation
c) output regulation
d) social regulation
Answers
Answer:
A
I took the quiz
Explanation:
Company X was expected to have earnings per share of $0.52 for the upcoming quarter. On the day of the results, the company reported earnings per share of $0.83. What happened to the share price when the stock market opened?
Answers
Answer:
Rise in stock price.
Explanation:
In general, the stock price has increased because the expected earning was $0.52 per share but the actual earnings were $0.83. therefore, we can say that stock prices have increased. moreover, there are other factors that may affect the stock price. But in this case. A positive surprise in the earnings per share results in stock price going up.
Read Case Study 5:2 Gas or Grouse? in Chapter 5 of your textbook Business Ethics Concepts & Cases (8th Edition) by Manuel G. Velasquez and select the best answer for multiple choice questions below.
1. the spending bill was:
a. not necessary for the adjudication of Gas
b. passed by a largely republican congress
c. one of the most important milestones for emissions in the last century
d. the nickname of a politician that overspent funds by the name of William
2. BLM argued that:
a. it is important to treat everybody with respect
b. not everybody deserves an opportunity
c. gas emissions are important inter-globally
d. a significant decline in deer was a cause of action
3. The directional technology to drill was between:
a.$400,000 - $600,000
b. democrats and republicans
c. scientists and physicists
d. the period of 2008-2013
4. Grouse could be affected by:
a. folic acid in the air
b. excavation for silver and coal
c. overpopulation of Grouse
d. things that attract ravens
5. A decline in number of birds resulted because of
a. destruction of grounds for mating
b. 80% of nesting was destroyed
c. poor government internal controls
d. necessary bird control
Answers
Answer:
1-b
2-d
3-a
4-d
5-a
Explanation:
Answer:
blm :)
Explanation:
If a company's required rate of return is 10% and, in using the net present value method, a project's net present value is zero, this indicates that the
Answers
Answer:
The project earns a 10% rate of return
Explanation:
This indicates that the “ project earns a 10% rate of return”. Since it is given in the question that the required rate of return is 10% and the company analysis that the net present value of the project is zero. That means the project is profitable and earns a sufficient profit or project giving a sufficient return. Therefore, it can be determined that the project is providing the earning or rate of return 10 per cent.
The company is termed as the established legal entity that has been built on the basis of the company act of the year 2013. The act demonstrates or depicts the economic activities of the company and also determines the various measures to calculate the earning and the contribution to the growth of the economy.
The indication in the context is The project earns a 10% rate of return
This signifies that the "promotes affordable a 10% rate of return." Because the needed rate of return is 10percent and also the company analysis suggests that the project's net present value is zero, the answer is yes.
This implies that the project is profitable and produces a sufficient profit or payback. In a conclusion, it can be determined that the challenging design has a 10% earning or rate of return.
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ABC uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $393,500 ($594,000), purchases during the current year at cost (retail) were $3,408,000 ($5,193,600), freight-in on these purchases totaled $159,500, sales during the current year totaled $4,666,000, and net markups were $414,000. What is the ending inventory value at cost
Answers
Answer:Ending Inventory at Cost= $981,248.40
Explanation:
Cost Retail
Beginning inventory $393,500 $594,000
purchases $3,408,000 $5,193,600
freight in $159,500,
net markups $414,000
Total $3,961,000 $6,201,600
Sales $4,666,000
Ending Inventory at Retail:=(Beginning inventory + purchases +net markups - Sales during the current year
594,000 + $5,193,600 + $414,000- $4,666,000, = $1,535,600
Cost to Retail Ratio:( Beginning inventory + purchases+freight in)/ (Beginning inventory + purchases +net markups )
=($393,500 + $3,408,000 +$159,500,) ÷ (594,000 + $5,193,600 + $414,000) =$3,961,000/$6, 201, 600= 0.638= 0.639
Ending Inventory at Cost: Ending Inventory at Retail x Cost to Retail Ratio
$1,535,600 x 0.639 = $981,248.40
Supply Chain Integration Supply chain integration is a major contributing factor to organizational success. The goal of supply chain integration is alignment within the supply chain. As a business leader, how can you achieve greater supply chain integration with suppliers and customers
Answers
Answer:
True.
Explanation:
The integration of the supply chain comes from the use of the total quality management tool that will make the supply chain effective as a whole, generating significant improvements at each stage of the chain, with the help of technologies that streamline operations. Integrating the supply chain means organizing the steps so that there is a reduction in costs, time, waste and continuous optimization of the processes as a whole, making the product reach the final consumer correctly meeting their expectations and needs.
The Absolute Zero Co. just issued a dividend of $2.70 per share on its common stock. The company is expected to maintain a constant 5.6 percent growth rate in its dividends indefinitely. If the stock sells for $54 a share, what is the company's cost of equity?
Answers
Answer:
10.88%
Explanation:
According to the given situation, the computation of the company's cost of equity is shown below:-
Stock price = (Current dividend × (1 + Growth rate)) ÷ (Cost of equity - Growth rate)
$54 = ($2.70 × (1 + 0.056)) ÷ (Cost of equity - 0.056)
Cost of equity = $2.8512 ÷ $54 + 0.056
= 10.88%
Therefore for computing the cost of equity we simply applied the above formula.
n January 1, 1987, three 100 par value bonds with 6% annual coupons will mature at the end of 1, 2, and 3 years, respectively. The redemption value of each bond is 100. You are given that the prices for these bonds on January 1, 1987 are: Maturity Date Price December 31, 1987 101.92 December 31, 1988 102.84 December 31, 1989 105.51 These prices are based on an interest rate of i in 1987, j in 1988, and k in 1989. Determine j.
Answers
Answer:
j = 4.52%
Explanation:
face value = $100, with 6% annual coupons
bond₁ matures in 1 year (December 31, 1987), market price $101.92
bond₂ matures in 2 years (December 31, 1988), market price $102.84
bond₃ matures in 3 years (December 31, 1989), market price $105.51
we must determine the market interest rate (j) for bond₂, and to do this we will use the approximate yield to maturity formula:
YTM = {coupon + [(face value - market price)/n]} / [(face value + market price)/2]
YTM = {6 + [(100 - 102.84)/2]} / [(100 + 102.84)/2] = 4.58 / 101.42 = 0.045158 = 4.52%
Since the bonds are sold at a premium, it means that the coupon rate is higher than the market rate.
true or false: a supply curve describes how much a producer of services are willing to sell at different prices
Answers
Answer:
True
Explanation:
The supply curve is a graph showing the quantities of a good or service a supplier is willing and able to supply at differnt prices.
According to the law of supply. the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
the supply curve is upward sloping
Joseph contributed $25,000 in cash and equipment with a tax basis of $6,400 and a fair market value of $12,600 to Berry Hill Partnership in exchange for a partnership interest.
a. What is Joseph’s tax basis in his partnership interest?
b. What is Berry Hill’s basis in the equipment?
Answers
Answer:
(A) $31,400
(B) $6,400
Explanation:
Joseph contributed $25,000 in cash and equipment
The tax basis is $6,400
The fair market value paid to Bill hill partnership is $12,600
(A) Joseph tax basis in his partnership interest can be calculated as follows
= contribution+tax basis
= $25,000+$6,400
= $31,400
(B) Since Joseph contributed a tax basis of $6,400 to Bill hill partnership in exchange for a partnership interest then, Bill hill's basis in the equipment is $6,400
2. The world has now become a “global village” in many respects. a) Explain any 5 factors working to make the world “a global village” for businesses. b) Discuss 4 major reasons why businesses go global.
Answers
Answer:
the watch has been totally fed tractors working to make a words a Glover villa for measures reserve between two globin respect as a global wind I have been by practice and a business discuss and white business as a work of the word for
You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you received for the car assuming an interest rate of 6.0%?
A. Year 0-$0.
B. Year 1-$1,000.
C. Year 2-$2,000.
D. Year 3-$2,000 and Year 4-$2,000.
Answers
Answer:
year two
Explanation:because less time still you'll have 2,000
In the _____ stage of the product life cycle, competition intensifies and profits diminish. Companies increase their promotional efforts but emphasize selective demand.
Answers
Answer: maturity
Explanation:
The product life cycle is the time used by a product from the day the product is introduced into the market till the day it's withdrawn. The four stages of the product life cycle are the introduction stage, the growth, the maturity stage and finally the decline stage.
In the maturity stage of the product life cycle, competition intensifies and profits diminish. Companies increase their promotional efforts but emphasize selective demand.
Charlie hopes to accumulate $83,000 in a savings account in 10 years. If he wishes to make a single deposit today and the bank pays 3 percent compounded annually on deposits of this size, how much should Charlie deposit in the account
Answers
Answer:
PV= $61,759.80
Explanation:
Giving the following information:
Future value (FV)= $83,000
Number of years (n)= 10 years
Interest rate (i)= 3% compounded annually
To calculate the initial deposit, we need to use the following formula:
PV= FV/(1+i)^n
PV= 83,000 / (1.03^10)
PV= $61,759.80
BangBang Percussion Company tried to implement a flextime system. However, after only a few months, they abandoned the new system. Which of the following is the most likely reason BangBang would drop its flextime plan?
A. The employees resented being required to come to work early or stay late.
B. It caused an increase in traffic congestion.
C. Workers tend to be less productive when they have to work longer hours in a single day.
D. It often made communication among employees more difficult.
Answers
Answer: It often made communication among employees more difficult.
Explanation:
Flextime is a way of redesigning the traditional work schedules in such a way that the workers will work at the hours that's convenient for them and flexible rather than working based on normal office schedule or timing.
The most likely reason BangBang would drop its flextime plan is when communication among employees becomes difficult.
Suppose that a country has no public debt in year 1 but experiences a budget deficit of billion in year 2, a budget surplus of billion in year 3, a budget surplus of billion in year 4, and a budget deficit of billion in year 5.
A) What is the absolute size of its public debt in year 4?
B) If its real GDP in year 4 is $104 billion, what is this country's public debt as a percentage of real GDP in year 4?
Answers
Answer:
a. 72 billion
b. 69.2%
Explanation:
a. The absolute size of its public debt in year 4 would be the total value of the deficit from year 1 till 4.
= 0 + 50 + 30 - 10 (budget surplus so it reduces deficit) - 2
= 72 billion
b. Percentage of real GDP in year 4;
= (72/104) * 100%
= 69.2%
The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 5.2 hours Standard variable overhead rate $11.60 per hour The following data pertain to operations for the last month: Actual hours 2,500 hours Actual total variable manufacturing overhead cost $29,590 Actual output 150 units What is the variable overhead efficiency variance for the month?
Answers
Answer:
Variable overhead efficiency variance= $19,952 unfavorable
Explanation:
Giving the following information:
Standard hours per unit of output 5.2 hours
Standard variable overhead rate $11.60 per hour
Actual hours 2,500 hours
Actual output of 150 units
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Standard quantity= 5.2*150= 780
Variable overhead efficiency variance= (780 - 2,500)*11.6
Variable overhead efficiency variance= $19,952 unfavorable
If an analyst wished to determine the degree to which leverage was being employed by a subject company, she would most likely examine that issuer's:______.
a) sales to debt ratio.
b) debt to equity ratio.
c) current ratio.
d) price to book ratio.
Answers
Answer:
B) debt to equity ratio.
Explanation
The debt to equity ratio is computed by dividing the issuer's long-term debt by their total capitalization. The higher the ratio, the more leverage being used by the company.
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On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. What is the maturity value of the note on March 1
Answers
Answer:
$9,236.71
Explanation:
The computation of the maturity value of the note is shown below:-
Interest Amount = ($9000 × 8%) × 120 ÷ 365
= $720 × 120 ÷ 365
= $236.71
So, the Maturity Value is
= Face value + Interest amount
= $9,000 + $236.71
= $9,236.71
Therefore for computing the maturity value we simply applied the above formula.
2. Skip and Peggy are brother and sister and they fight about everything. Skip says that perfectly competitive firms maximize profit where marginal revenue equals marginal cost. Peggy says perfectly competitive firms maximize profit where price equals marginal cost. Settle this sibling rivalry once and for all.
Answers
Answer: They are both right.
Explanation:
Firms in every market will always maximise profit where their Marginal Revenue equals Marginal Cost because at this point, resources are being fully utilized. This is therefore no different in a Perfectly competitive market so Skip is correct.
Peggy is also correct however because in a Perfectly Competitive market, the demand curve is perfectly elastic. This creates a situation where the Price, Marginal Revenue and Average Revenue are all the same and represent the demand curve as well.
With the Price being the same as the Marginal Revenue in a Perfectly competitive firm, that means that where the Price equals Marginal Cost is where the Marginal Revenue equals Marginal Cost as well so indeed perfectly competitive firms maximize profit where price equals marginal cost.
________ are a means for consumers to share text, images, audio and video information with each other and with companies, and vice versa. Group of answer choices Social media Microsites Interstitials Pay-per-click ads Mobile ads
Answers
Answer:
Social Media.
Explanation:
Social media are increasingly being used by people and companies around the world. Through it it is possible to share information, photos, videos, social interactions, etc.
For companies, these platforms are more than just an interaction tool, they can act as a marketing channel that will strengthen the relationship with the consumer, in addition to attracting new customers, strengthening the brand image, engaging consumers, creating shopping desires, providing data on consumer trends, etc.
Social Media are a means for consumers to share text, images, audio and video information with each other.
The following information should be considered:
Social media are increasingly being used by people and companies around the world. Through it is possible to share information, photos, videos, social interactions, etc.Learn more: brainly.com/question/17429689
The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020.
Raw Materials Inventory 7/1/19 $48,100
Factory Insurance $4,700
Raw Materials Inventory 6/30/20 39,700
Factory Machinery Depreciation 16,100
Finished Goods Inventory 7/1/19 96,100
Factory Utilities 28,700
Finished Goods Inventory 6/30/20 19,900
Office Utilities Expense 8,550
Work in Process Inventory 7/1/19 19,900
Sales Revenue 555,000
Work in Process Inventory 6/30/20 19,900
Sales Discounts 4,300
Direct Labor 139,350
Plant Manager’s Salary 61,100
Indirect Labor 24,560
Factory Property Taxes 9,610
Accounts Receivable 27,100
Factory Repairs 1,500
Raw Materials Purchases 96,500
Cash 32,100
Required:
Prepare an income statement through gross profit.
Answers
Answer:
Clarkson Company
Income statement for the year ended June 30, 2020
Sales Revenue $555,000
Less Costs of Goods Sold :
Opening Finished Goods Inventory $96,100
Add Cost of Goods Manufactured $390,520
Less Closing Finished Goods Inventory ($19,900) ($466,720)
Gross Profit $83,280
Explanation:
First prepare a Schedule of Manufacturing Costs to determine the Cost of Goods Manufactured.
Schedule of Manufacturing Costs
Factory Insurance $4,700
Raw Materials ($48,100 + $96,500 - $39,700) $104,900
Factory Machinery Depreciation $16,100
Factory Utilities $28,700
Direct Labor $139,350
Plant Manager’s Salary $61,100
Indirect Labor $24,560
Factory Property Taxes $9,610
Factory Repairs $1,500
Add Opening Work In Process Inventory $19,900
Less Closing Work In Process Inventory ($19,900)
Cost of Goods Manufactured $390,520
Data regarding four different products manufactured by an organization are presented below. The manufacturer has a constrained resource - machine hours.
Product A Product B Product Product D
Selling price per unit $20.00 $25.00 $23.00 $15.00
Variable cost per unit $10.00 $16.00 $11.00 $7.00
Hours to make each unit 5 hours 25 hours 2 hours 35 hours
Rank these four products in order of profitability.
1
2
3
4
Answers
An investor buys a total of 360 shares-year bond with a $1,000 face value for $800. The bond's coupon rate is 8% and interest payments are made semi-annually. Waht are the bond's yield to maturity and effective annual yield?
Answers
Answer:
YTM (Annual( = 10.13%
Effective Annual Yield =10.40%
Explanation:
In order to calculate Yield to maturity, we need to use yield to maturity formula.
Formula: Yield to maturity = [C +(F – P)/n]/(F + P)/2
Where,
C = Coupon amount
F = Face value
n = number of periods
P = Current price
Data
C = 1000 x 8 % = 80
C (6months) = 80 x 6/12 = 40
F = $1000
n = 30 years
P = $800
Solution
YTM = 40 + (1000 – 800/30)/(1000 + 800)/2
YTM = 40 + (200/30)/(1800/2 )
YTM = 40 +( 200/30)/900
YTM = 5.068 semiannual
YTM (Annual( = 10.13%
Effective Annual Yield = [tex](\frac{1+0.1014}{2})^{2-1}[/tex]
Effective Annual Yield =10.40%
If the budget deficit increases then a. saving and the interest rate rise. b. saving rises and the interest rate falls. c. saving falls and the interest rate rises. d. saving and the interest rate fall.
Answers
Answer:
c. saving falls and the interest rate rises.
Explanation:
If Country A runs a budget deficit, it forces the government to issue bonds at reduced prices in order to raise funds to shore up the decreased government revenue. When bonds are issued, the government is mopping up the savings, thus reducing the available savings. With this increased budget deficit, interest rates will rise as the cost of funding increases to match the inflationary effect of the deficit. And the vicious circle starts.
Garrod Smith is a master woodcarver and sole owner of "Smith Custom Doors, LLC." Which of the following advantages applies to his business form?
A. The business is not a taxable entity.B. The business is a separate legal entity from Garrod Smith.C. The business is not taxed as a corporation or sole proprietorship.D. The business makes Garrod liable for only half of the business' debt.
Answers
Answer: The business is not taxed as a corporation or sole proprietorship.
Explanation:
From the question, we are informed that Garrod Smith is a master woodcarver and sole owner of "Smith Custom Doors, LLC." The advantage that applies to his business form is that the business is not taxed as a corporation or a sole proprietorship.
Fill in the blanks to complete the sentence. Fixed costs equal $25,000; variable cost per unit is $2.50 and units produced are 10,000. The total budgeted costs is
Answers
Answer:
Total cost= $50,000
Explanation:
Giving the following information:
Fixed costs equal $25,000
Variable cost per unit is $2.50
Units produced=10,000
To calculate the total costs, we need to use the following formula:
Total cost= fixed costs + total variable cost
Total cost= 25,000 + 2.5*10,000
Total cost= $50,000
The Total budgeted cost when the fixed cost, variable cost per unit is given should be $50,000.
Calculation of the total budgeted cost:Since
Fixed costs equal $25,000
The variable cost per unit is $2.50
Units produced=10,000
Now the following formula is used
Total cost= fixed costs + total variable cost
Total cost= 25,000 + 2.5*10,000
Total cost= $50,000
Basically we added the fixed cost and the total variable cost so that the total cost could come.
hence, The Total budgeted cost is $50,000.
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Rose Corporation, a calendar year corporation, had accumulated earnings and profits of $40,000 as of January 1, 2014. However, for the first six months of 2014 Rose Corporation had an operating loss of $36,000, and finished the year with a total net operating loss for tax year 2014 of $55,000. Rose Corporation distributed $15,000 to its shareholders on July 1, 2014. Which of the following is correct?A. The entire distribution of $15,000 is taxable as a dividend.B. The entire distribution is not taxable.C. The part of the distribution which is taxable as a dividend is $12,500.D. The part of the distribution which is taxable as a dividend is $14,000.
Answers
Answer:
C. The part of the distribution which is taxable as a dividend is $12,500.
Explanation:
Rose's total loss for the year = $55,000
we must prorate the loss: $55,000 / 12 months = $4,583.33 per month
loss allocated to the first 6 months = $4,583.33 x 6 = $27,500
retained earnings before the distribution = $40,000 - $27,500 = $12,500
since distributions must come from retained earnings to be considered dividends, then only $12,500 will be considered dividends. The remaining $2,500 will be considered a return of capital
A coworker of Connor's recommends that she maximize the shelf space devoted to those drinks with the highest contribution margin per case. Do you agree with this recommendation? Explain briefly.
Answers
Answer:
Yes
Explanation:
Ultimately I agree with the recommendation that has been given by Connor's coworker. By maximizing the shelf space specifically devoted to these drinks it will cause two things to happen. First, customers will mostly notice those drinks which will entice them to buy those drinks instead of the ones they cannot see. The second is that since customers are buying more of these drinks, the increase in sales will also increase profits, but since these items contribution margins are significantly higher than the others, it will cause profits to drastically increase.