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Alika [10]
3 years ago
6

Fred and Barney started a partnership. During Year 1, Fred invested $13,500 in the business and Barney invested $22,000. The par

tnership agreement called for each partner to receive an annual distribution equal to $12% of his capital contribution. Any further earnings were to be retained in the business and divided equally between the partners. The partnership reported net income of $31,000 during Year 1. How will the $31,000 of net income be split between Fred and Barney respectively
Business
1 answer:
Orlov [11]3 years ago
4 0

Answer: Fred; $14,990

Barney; $16,010

Explanation:

Each partner will receive 12% of their investment.

Fred will therefore receive,

= 12% * 13,500

= $1,620

Barney will receive,

= 12% * 22,000

= $2,640

Adding both these figures gives,

= 1,620 + 2,640

= $4,260

This figure needs to be subtracted from the income and then the rest will be split equally.

=31,000 - 4,260

= $26,740

= 26,740/ 2

= $13,370

Each partner is to get $13,370 extra.

Fred gets,

= 1,620 + 13,370

= $14,990

Barney gets,

= 2,640 + 13,370

= $16,010

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Explanation:

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A company orders office supplies in June. Those supplies are received and used in July. The supplies are paid for in August. In
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Answer:

Expense must be recognized in July

Explanation:

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8 0
3 years ago
A large-scale bakery is laying out a new production process for its packaged bread, which it sells to several grocery chains. It
Nataliya [291]

Answer:

840 breads size oven.

Explanation:

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4 0
3 years ago
What do inflation rates measure?
My name is Ann [436]

Answer:

C. The speed with which general prices are rising

Explanation:

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Answer: Assets increase $4,500 and liabilities increase $4,500.

Explanation:

An asset are the properties which a business or an organization owns. An asset possess an economic value.

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3 years ago
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