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creativ13 [48]
3 years ago
9

Admitting New Partners Who Buy an Interest and Contribute AssetsThe capital accounts of Trent Henry and Tim Chou have balances o

f $160,000 and $100,000, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $35,000 and one-fourth of Chou’s interest for $29,000. Clarke contributes $90,000 cash to the partnership, for which she is to receive an ownership equity of $90,000.a. Journalize the entry to record the admission of Gilbert. For a compound transaction, if an amount box does not require an entry, leave it blank.b. Journalize the entry to record the admission of Clarke.c. What are the capital balances of each partner after the admission of the new partners?
Business
1 answer:
tamaranim1 [39]3 years ago
6 0

Answer:

Explanation:

The journal entries and the computations are shown below:

a. Henry's Capital A/c  Dr $32,000

   Chou's Capital A/c Dr $25,000

                To Gilbert's Capital A/c $57,000

(Being the admission of Gilbert is recorded)

The calculation would be

For Trent Henry

= Capital balance × interest buyed

= $160,000 × 1 ÷ 5

= $32,000

For Tim Chou

= Capital balance × interest buyed

= $100,000 × 1 ÷ 4

= $25,000

b. Cash A/c Dr $90,000

          To  Clarke's Capital A/c $90,000

(Being the contributed amount is recorded)

c. Capital balances would be

Particulars                          Henry       Chou       Gilbert        Clarke

Capital before admission $160,000     $100,000    

Amount after Admission       -$32,000     -$25,000  $57,000          $90,000

New Capital balances         $128,000      $75,000 $57,000       ,$90,000

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stiv31 [10]

The action of New Balance, Inc. to successfully reposition its athletic shoes to focus on fit, durability, and comfort rather than competing head-on against Nike and Adidas in fashion and professional sports is <u>A. a reaction to a </u><u>competitor's position</u><u>.</u>

<h3>What is competitive positioning?</h3>

Competitive positioning is offering and creating value for your customers and brand in the market.

The following four competitive positions can be assumed by an entity, depending on the adopted market strategies:

  • Market leadership
  • Market challenging
  • Market followership
  • Market niching.

<h3>Answer Options:</h3>

A. react to a competitor's position

B. reach a new target market segment

C. catch a rising trend

D. change the value offered to its customers

E. accommodate its target audience's preference for comfortable sneakers

Thus, New Balance, Inc. is likely reacting to <u>Option A</u>.

Learn more about market positioning at brainly.com/question/25165063

4 0
2 years ago
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 20
Zarrin [17]

Answer:

$1,247.12

Explanation:

For computing the asked price we need to apply the present value formula i.e to be shown in the attachment below

Given that,  

Future value = $1,000

Rate of interest = 4.151% ÷ 2 = 2.076%

NPER = 17 years  × 2 = 34 years

The 20 years come from May 2019 to May 2036

PMT = $1,000 × 6.193% ÷ 2 = $30.965

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value or the ask price is $1,247.12

8 0
3 years ago
Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfoli
statuscvo [17]

Answer:

The expected return on a portfolio is 14.30%

Explanation:

CAPM : It is used to described the risk of various types of securities which is invested to get a better return. Mainly it is deals in financial assets.

For computing the expected rate of return of a portfolio , the following formula is used which is shown below:

Under the Capital Asset Pricing Model, The expected rate of return is equals to

= Risk free rate + Beta × (Market portfolio risk of return - risk free rate)

= 8% + 0.7 × (17% - 8%)

= 8% + 0.7 × 9%

= 8% + 6.3%

= 14.30%

The risk free rate is also known as zero beta portfolio so we use the value in risk free rate also.

Hence, the expected return on a portfolio is 14.30%

6 0
3 years ago
BE16.15 (LO 5) Bedard Corporation reported net income of $300,000 in 2020 and had 200,000 shares of common stock outstanding thr
Verizon [17]

Answer:

$1.40 per share

Explanation:

The computation of the diluted earning per share is shown below:

Diluted earning per share = Net income ÷ weighted number of shares

where,

Net income is $300,000

And, the weighted number of shares is

= 200,000 shares + (45,000 options - 45,000 options × $10 ÷ $15

= 200,000 shares + (45,000 options - 30,000 options)

= 200,000 shares + 15,000

= 215,000 shares

So, the diluted per share is

= $300,000 ÷ 215,000 shares

= $1.40 per share

5 0
3 years ago
You are considering a new product launch. The project will cost $1,006,000, have a four-year life, and have no salvage value; de
Serjik [45]

Answer:

A) In Best Case: revenues rise by 10% while costs decline by 10%. In the worst case, profits are declining by 10%, while costs are rising by 10%.

Scenario   Unit sales         Variable costs Fixed costs

  Base      360                   $16,300          $334,000

  Best        396                    $14,670           $300,600

  Worst      324                    $17,930           $367,400

b), c) Using the tax shield approach, the OCF and NPV for the base case estimate is:

OCF(base) = [($19,800 – 16,300)(360) – 334,000](0.60) + 0.40(1,006,000/4)

OCF(base)= $656,200

NPV(base) = –$1,006,000 + $656,200(PVIFA14%,4)

NPV(base) = $905,978.01

OCF(worst) = [($19,800 – 17,930)(324) – 367,400](0.60) + 0.40(1,006,000/4)

OCF(worst)= $243,688

NPV(worst) = –$1,006,000 + $243,688(PVIFA14%,4)

NPV(worst) = $ (295,963.28)

OCF(best) = [($19,800 – 14,670)(396) – 300,600](0.60) + 0.40(1,006,000/4)

OCF(best)= $1,139,128

NPV(best) = –$1,006,000 + $1,139,128(PVIFA14%,4)

NPV(best) = $2,313,091.27

d) OCF and NPV with Fixed Costs 344,000

OCF(base) = [($19,800 – 16,300)(360) – 344,000](0.60) + 0.40(1,006,000/4)

OCF(base)= $650,200

NPV(base) = –$1,006,000 + $650,200(PVIFA14%,4)

NPV(base) = $888,295.74

e) (Change in NPV in Case d wrt Case c)/Change in FC,

(888,295.74 - 905,978.01)/(10,000) = -1.75

8 0
3 years ago
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