Complete Question:
The O'Hara, Parness, and Lincoln partnership balance sheet reports capital of $50,000 for O'Hara, $125,000, for Parness, and $25,000 for Lincoln. O'Hara is withdrawing from the firm. The partners have shared profits and losses in the ratio of 1/2 to O'Hara, 1/4 to Parness, and 1/4 to Lincoln. The partnership agreement states that a withdrawing partner will receive cash equal to the book value of his partners' equity. Journalize the withdrawal of O'Hara.
Answer:
The O'Hara, Parness, and Lincoln Partnership
Journal Entry:
Date Description Debit Credit
O'Hara Capital A/c $50,000
Cash Account $50,000
To record the withdrawal of O'Hara and his capital interest.
Explanation:
The Partnership of O'Hara, Parness, and Lincoln can use the journal entry as above to record the withdrawal of a partner. The O'Hara's Capital account previously had a credit balance and cash will be involved in settling O'Hara, the journal entries to complete the withdrawal of O'Hara are a debit to the O'Hara's Capital account and a credit to the Cash account. This arrangement is in accordance with the partnership agreement. This is the most important governing law for the partnership and everything or transaction affecting the partnership must be done accordingly. It is only in the absence of an agreement that the laws or general practise concerning partnership can be applied.
Explanation:
given data:
lemonade to be sold = 20cups at $20.
cost of sign post = $10.
cost of cup and lemonade mix = $15.
A. Marah profit from the venture would be
= Sales made – Total cost
= $20 – $25
= –$5.
B. Based on the information above Marah should forget about Opening the lemonade stand as she would be running at a loss of $5.
C. The $10 spent on the sign is a sunk cost because it cannot he recovered after it has been spent.
Answer:
aggregate; marginal product; positive; diminishing.
Explanation:
Slopes are well depicted in image attachment.
Aggregate production function:
This function shows how the available inputs (production) of an economy affects the total real gross domestic product.
Note: another word for aggregate implies the whole or total production in an economy.
Marginal product function: The marginal product is the slope of the total aggregate function.
Remember, marginal product is the change in output that results from adding more unit of labor, in this case in an entire economy.
<em><u>Market demand is the total quantity demanded across all consumers in a market for a given good. Aggregate demand is the total demand for all goods and services in an economy.</u></em>