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3 years ago

When a partnership is liquidated, the journal entry to pay the claims of creditors would include a debit to

1 answer:

4 0

When a partnership is liquidated, the journal entry to pay the claims of creditors would include a debit to:

B.) each individual creditor and a credit to cash.

When you liquidate a partnership, liabilities must be paid off before partner's investments can be returned to them. In this way, all creditors will be satisfied even if the partner's capital experienced a loss.

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Lori purchased a home for $250,000 with an additional $5,000 in related purchase costs and then added a garage at a cost of $25,

Tanzania [10]

Answer: $10,000

Explanation:

If you purchase a house and pass the ownership test of having lived in the house for at least 2 years in the past 5, you can exclude $250,000 from the capital gains as a single person.

Lori passes the ownership test and so can claim the tax exclusion.

Capital gain:

= Cash received - Purchase costs

= (575,000 - 35,000) - (250,000 + 5,000 + 25,000)

= $260,000

After claiming exclusion of $250,000

= 260,000 - 250,000

= $10,000

3 0

3 years ago

Which manager shows a democratic style of functioning?

Vikentia [17]

A democratic leader shares the decision-making and most of the problem solving

3 0

3 years ago

Sunland Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $2

Dmitriy789 [7]

Answer:

See below

Explanation:

Given selling price per unit = $300,000/5,000 units = $60

1. Increase selling price by 10% with no change in total variable costs or sales volume

Selling price = $60 × 1.1 = $66

Sales revenue = $66 × 5,000 units = $330,000

Increase in sales revenue = $330,000 - $300,000 = $30,000

Here, as costs remains the same, Net income will increase as much as the increase as sales revenue which is $30,000

2. Reduce variable cost to 56% of sales

New variable cost = $330,000 × 56% = $184,800

Saving in variable cost = $223,000 - $184,800 = $38,200

Here, as the fixed cost and sales revenue remains the same, net income will increase as much as the saving in variable cost which is $38,200

3. Reduce fixed cost by $18,000

As the variable cost and sales revenue remains the same, net income will increase as much as the savings in fixed cost which is $18,000

3 0

3 years ago

Over the course of 2018, the first year of operations, Medical Supplies, Inc. had the following income transactions: Sales R

LekaFEV [45]

Answer:

Ending RE at year-end: 494,000

Explanation:

As this is the first-year of operation there is no beginning Retained Earnings.

Sales Revenue of 4,340,000

Cost of Goods Sold (1,936,000)

Wage Expense (876,000)

Insurance Expense (324,000)

Administrative Expense (414,000)

Utilities Expense (192,000)

Selling Expense <u> (42,000) </u>

Net Income 556,000

Dividends paid: (62,000)

Ending RE 494,000

4 0

3 years ago

Rush Corp. has outstanding accounts receivable totaling $500,000 as of December 31 and sales during the year of $250,000. There

Dominik [7]

Answer:

$20,000

Explanation:

Calculation for what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense

Using this formula

Balance in the allowance for doubtful accounts=

(Outstanding Accounts Receivable

* Percentage uncollectible)- Eebit balance of in the allowance for uncollectible accounts.

Let plug in the formula

Balance in the allowance for doubtful accounts=($500,000*8%)-$20,000

Balance in the allowance for doubtful accounts=$40,000-$20,000

Balance in the allowance for doubtful accounts=$20,000

Therefore the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense is $20,000

8 0

3 years ago