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Gennadij [26K]
3 years ago
12

Barton and Fallows form a partnership by combining the assets of their separate businesses. Barton contributes accounts receivab

le with a face amount of $48,000 and equipment with a cost of $186,000 and accumulated depreciation of $105,000. The partners agree that the equipment is to be valued at $90,000, that $3,700 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,900 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Fallows contributes cash of $28,300 and merchandise inventory of $56,000. The partners agree that the merchandise inventory is to be valued at $60,500. Journalize the entries to record in the partnership accounts (a) Barton's investment and (b) Fallows's investment. If an amount box does not require an entry, leave it blank. (a) (b)
Business
1 answer:
bekas [8.4K]3 years ago
5 0

Answer and Explanation:

The Journal entry is shown below:-

1. Equipment Dr, $90,000

Accounts receivable Dr, $44,300

($48,000 - $3,700)

      To Accumulated depreciation -equipment $1,900

      To Barton's capital $132,400

(Being Barton capital contribution in the form of accounts Receivable and equipment as per agreed terms is recorded)

2. Cash account Dr, $28,300

Merchandise Inventory Account Dr, $60,500

       To  Fallows’s Capital Account $88,800

(Being Fallows capital contribution in the form of merchandise inventory and cash as per agreed terms)

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Sheridan Company issued $6,500,000 of 6%, 10-year bonds for $5,614,000. The straight line method of amortization is to be used.
Mrac [35]

Answer:

The solution of the given query is explained throughout the segment below.

Explanation:

The given values are:

Company issued amount,

= $6,500,000

Rate of interest,

= 6%

Time,

= 10 years

Now,

On bonds payable amortization, the discount will be:

= \frac{6,500,000 -5,614,000}{10}

= \frac{886,000}{10}

= 88,600 ($)

Interest expenses will be:

= (6,500,000\times 6 \ percent) + 88,600

= 390,000+88,600

= 478,600 ($)

5 0
3 years ago
Other things the same, a decrease in the price level makes consumers feela.more wealthy, so the quantity of goods and services d
djyliett [7]

Answer:

<h2>The answer in this case would be option a. or feel more wealthy, so the quantity of goods and services demanded rises. </h2>

Explanation:

  • As a common consumer psychology,as the price of any good or service decreases,any rational consumer or buyer feels more wealthy compared to before as the purchasing power of the consumers or buyers pertaining to that particular good or services has increased,everything else held constant.
  • Purchasing power of any good or service is generally reflected by the purchasing or buying capacity of that good or service with the amount of money that a consumer or buyer has at his or her disposal.
  • As the price of any good or service decreases,it becomes cheaper to the consumer,again everything else considering constant.In other words,it increases the purchasing power or capacity of the consumers or buyers.Therefore,the typical consumer or buyer will prefer or demand more of that particular good or service thereby,increasing its quantity demanded due to a price reduction.
3 0
3 years ago
A hairstylist entered into a contract with a hairspray manufacturer in which the manufacturer agreed to supply the hairstylist w
zloy xaker [14]

Answer:

yes

Explanation:

3 0
3 years ago
Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount repor
konstantin123 [22]

Answer:

Total Cash and Cash Equivalents = $14,100

Explanation:

Particulars                 Amount     Reason

Checking Account     $6,000      Readily realizable

Bond Investment          Nil            The bond is due in 20 yrs, hence not readily realizable

U.S. Treasury Bill        $6,500       Due in 1 month

Loan to an Employee     Nil           The loan is for a period of more than 3 months

Currency and Coins    $1,600        They are cash itself

Accounts Receivable     Nil            Accounts receivable is not considered as readily realizable

Total Cash and Cash Equivalents = $14,100

5 0
3 years ago
Stimpleton Company engages in the following cash payments: Purchase equipment $ 3,600 Pay rent 600 Repay loan to the bank 5,000
Svetradugi [14.3K]

Answer:

$1,100

Explanation:

The operating activities are the activities that are include day to day transaction which would result in cash receipts and the cash payments

The cash receipts would be in terms of received cash from customers and the cash payments would be salary expenses, utilities expenses, etc that are paid in cash.

So, the total amount of cash paid for operating activities is

= Rent paid + workers salaries paid

= $600 + $00

= $1,100

8 0
3 years ago
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