1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lozanna [386]
3 years ago
6

Hunter, Folgers, and Tulip have been partners while sharing net income and loss in a 5:3:2 ratio (in percents: Hunter, 50%; Folg

ers, 30%; and Tulip, 20%).
On January 31, the date Tulip retires from the partnership, the equities of the partners are Hunter, $150,000; Folgers, $90,000; and Tulip, $60,000.
Prepare journal entries to record the retirement of Tulip under the independent assumption.
Assume Tulip is paid; (a) $60,000, (b) $80,000,and (c) $30,000 for her equity using partnership cash. (Do not round intermediate calculations.)
Business
1 answer:
DochEvi [55]3 years ago
7 0

Answer:

a Debit  Capital $60,000  

Credit  Tulip's Bank Account $60,000  

   

b    

Debit  Capital $60,000  

Debit  P&L $20,000  

Credit  Tulip's Bank Account $80,000  

c    

Debit  Capital $60,000  

Credit  P&L $30,000  

Credit  Tulip's Bank Account $30,000  

Explanation:

Depending on partnership agreement of the partners,one way to treat Tulip's exit from the business is what i described,it could be treated that whatever shortfall in capital paid to Tulip or the excess paid is shared among the remaining partners in their agreed profit sharing ratio

You might be interested in
Foutz Corporation has entered into a 8 year lease for a piece of equipment. The annual payment under the lease will be $3,600, w
IRINA_888 [86]

Answer:

$17,721

Explanation:

The computation of the Net present value is shown below

The discount factor should be computed by

= 1 ÷ (1 + rate) ^ years

where,  

rate is 17%  

Year = 0,1,2,3,4 and so on

Discount Factor:

For Year 1 = 1 ÷ 1.17^0 = 1

For Year 1 = 1 ÷ 1.17^1 = 0.8547

For Year 2 = 1 ÷ 1.17^2 = 0.7305

For Year 3 = 1 ÷ 1.17^3 = 0.6244

For Year 4 = 1 ÷ 1.17^4 = 0.5377

For Year 5 = 1 ÷ 1.17^5 = 0.4561

For Year 6 = 1 ÷ 1.17^6 = 0.3898

For Year 7 = 1 ÷ 1.17^7 = 0.3332

So, the calculation of a Present value of all yearly cash inflows are shown below

= Year 0 cash inflow × Present Factor of Year 0 + Year 1 cash inflow × Present Factor of Year 1 + Year 2 cash inflow × Present Factor of Year 2 + Year 2 cash inflow × Present Factor of Year 2 + Year 3 cash inflow × Present Factor of Year 3 + Year 4 cash inflow × Present Factor of Year 4 + Year 5 cash inflow × Present Factor of Year 5 + Year 6 cash inflow × Present Factor of Year 6 + Year 7 cash inflow × Present Factor of Year 7

= $3,600 × 1 + $3,600 × 0.8547 + $3,600 × 0.7305 + $3,600 × 0.6244 + $3,600 × 0.5377 + $3,600 × 0.4561 + $3,600 × 0.3898 + $3,600 × 0.3332

= $3,600 + $3,077 + $2,630 + $2,248 + $1,921 + $1,642 + $1,403 + $1,200

= $17,721

We take the first four digits of the discount factor.  

3 0
3 years ago
Isaac holds one ton of perishable fruit in storage for Juice Smoothies Corporation. Juice Smoothies does not pay for the storage
FrozenT [24]

Answer:

The correct answer is option b.

Explanation:

Here, when the Juice smoothies does not pay Issac, the selling of fruits is an example of mitigation of damages.

Mitigation of damages can be referred as a contract law under which a victim of breach of law can take actions in order to minimize damages. It means to take any reasonable opportunity possible under the given circumstances to minimize or reduce damages. Though taking extreme actions is not required.

7 0
3 years ago
The labor force includes rev: 05_30_2018 Multiple Choice employed workers but excludes persons who are officially unemployed. pe
butalik [34]

Answer:

employed workers and persons who are officially unemployed

Explanation:

The labor force is the force that involves the labors who are employed and the unemployed i.e. officially

In an equation, it can be

Labor force = Employed workers + unemployed workers

It is a combination of both the employed and the unemployed workers

hence, the correct option is third

Therefore all the other options are wrong as they do not meet the criteria of the labor force

8 0
3 years ago
Amy earns an annual salary of $40,000 working for the law office of smith and jones. calculate her gross pay per paycheck if she
Aloiza [94]
1,666 divide it by 12 then divide it by 2
3 0
3 years ago
A local government operates on a calendar-year basis. Prepare journal entries to record the following transactions and events fo
astra-53 [7]

Answer:Please find answers in explanation column

Explanation:

1. Journal to record Short term borrowing

Date                 Account title                             Debit                  Credit

Feb. 1, 2018     Cash                                         $400,000

Tax anticipation notes payable                                                   $400,000

2.Journal to record  accrued interest payable on TAN)

Date                 Account title                             Debit                  Credit

Dec. 31, 2018   Expenditures – interest            $3,666.67  

Accrued interest payable                                                            $3,666.67  

Calculation :Accrued interest=  Principal x rate x period (time)

$400,000 x 1% x 11/12= $3,666.67  

3. Journal to record investment in  CD

Date                 Account title                             Debit                  Credit

April 1, 2018       Investments                            $100,000

                            Cash                                                                    $100,000

4.Journal To record redemption of CD with interest

Date                 Account title                             Debit                  Credit

Sept. 30, 2018          Cash                       $100,400

                               Investments                                                    $100,000

Cash Revenues – interest income                                                      $400

Calculation

Accrued Interest

Principal x rate x period (time= )100, 000 x 0.8 %x 6/12)= $400

Cash = Investment + interest= $100,000 + $400 = $100,400

4 0
3 years ago
Other questions:
  • Jane receives utility from days spent traveling on va- cation domestically (D) and days spent traveling on vacation in a foreign
    12·1 answer
  • Which one of the following is not an ownership right of a stockholder in a corporation?
    13·1 answer
  • Is this correct? How do I do this?!
    9·1 answer
  • As an investor studying the gold standard, Kyle knows that he would need 44 euros to purchase one ounce of gold. These 44 euros
    6·1 answer
  • The prices of a certain security followa geometric Brownian motion with parameters μ = .12 and σ = .24. If the security’s price
    10·1 answer
  • Cloud Storage Solutions works closely with customers showing them early versions of its software and interface and then quickly
    10·1 answer
  • Under what conditions does a​ Cobb-Douglas production​ function,
    7·1 answer
  • select all of the statements that discuss one of the problems with price gouging laws that prevent prices from rising to the new
    11·1 answer
  • Threadless receives immediate customer feedback on specific promotions through online orders. What type of control does this rep
    7·1 answer
  • A firm that is considering changing the colors used on its packaging wants to determine the effect of different color schemes on
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!