Answer:
assists managers with recruitment, motivation and maintaining employees within the organisation
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.
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
B. sell a "deep in the money" European style call of the stock
Explanation:
The difference between an American style call and a European style call is that the American style can be exercised any time before the expiration date, while the European style call is only exercised at the date of expiration.
The customer in this question, has a pre-defined point in time when he wishes to exit his long stock postion. Therefore he is selling a "deep in the money" European style call of the stock
Answer:
Explicit Costs: 1500+1750 = 3250.
Explicit Cost is the cost that is tangible and can be seen.
Implicit Costs & Opportunity Costs: 20000+4000 = 24000.
Implicit cost and opportunity cost will be the same here because they both represent the intangible cost that is foregone by choosing the next best alternative.
Economic Profit: Revenue - Explicit Costs - Implicit Costs
Therefore, the economic profit in this question will be,
45000-3250-24000 = $17480.
Although Britney is earning a profit of $17480 in 2012, from economic viewpoint, she is operating at loss because she could have earned $24000(Rent+Music) by just doing what she was doing previously.
Hope my answer helps you. Good luck.