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Elena-2011 [213]
3 years ago
6

Meir, Benson and Lau are partners and share income and loss in a 3:2:5 ratio. The partnership's capital balances are as follows:

Meir, $168,000; Benson, $138,000; and Lau, $294,000. Benson decides to wothdraw from the partnership, and the partners agree not to have the assets revalued upon Benson's retirement. Prepare journal entries to record Benson's February 1 withdrawal from the partnership under the following separate assumptions.
(a) Benson sells her interest to North for $160,000 after North is approved as a partner;
(b) Benson gives her interest to a son-in-law, Schmidt, and Schmidt is approved as a partner;
(c) Benson is paid $138,000 in partnership cash for her equity;
(d) Benson is paid $214,000 in partnership cash for her equity; and
(e) Benson is paid $30,000 in partnership cash plus equipment recorded on the parnership books at $70,000 less its accumulated depreciation of $23,000.
Business
1 answer:
sertanlavr [38]3 years ago
8 0

Answer:

Journal Entry

a) Debit Capital- Benson $138,000 Credit Capital-North $138,000

b) Debit Capital- Benson $138,000 Credit Capital-Schmidt $138,000

c) Debit Capital-Benson $138,000 Credit Bank $138,000

d) Debit Capital-Benson $138,000 Debit Capital-Meir $28,500 Debit Capital-Lau $47,500 Credit Bank $214,000

e) Debit Capital-Benson $138,000 Debit Accumulated Depreciation $23,000 Credit Cash $30,000 Credit Equipment $70,000 Credit Capital-Meir $22,875 Credit Capital-Lau $38,125

Explanation:

a and b are the same with the same amount of capital transferred from one partner to another partner, it is just a matter of derecognizing Benson and recognize North or Schmidt.

c) Partner Benson is paid cash her capital,

d) decrease in meir's Capital = 214,000-138,000 = 76,000*3/8= $28,500

   Decrease in Lau's Capital Account = $76,000 5/8 = 47,500

Excess funds are taken from capitals or income summary account of the partnership which will affect the capitals of the remaining partners

e)  Meir's Capital = $138,000 -(70,000-23,000+30,000)

                            = $138,000-77,000

                           = $61,000*3/8 =$22,875

Lau = $61,000*5/8 =38,125

The Capital Accounts of the remaining partners will increase because of the gain made on buying out the leaving partner.

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Describe at least three exchange rate factors that are likely to attract foreign investors to a country's currency. Explain why
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Answer: 1. High Interest

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Explanation:

Foreign Investors are Investors and investors always like to invest where there are prospects of growth and profit.

High Interest Rates give them the opportunity to invest their money in a currency that will give them a great return because a country where there are high interest rates imparts this on its currency which causes it to rise in value thereby giving currency holders a capital gain.

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Finally there is the Political Factor (other factors exist). A stable country politically stands a better chance of maintaining a higher value currency that one with lower political stability. This is because political Stability attracts investors and as more investments come into a country, this reflects in its currency by making it stronger which will attract foreign currency investors.

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One year ago, you purchased 500 shares of stock for $22 a share. The stock pays $0.32 a share in dividends each year. Today, you
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Answer:

Return on investment=12.81%

Explanation:

<em>Return on investment for a stock comprises of the capitals and dividend earned on the stock.</em>

<em>The capital gain is the difference between he cost of the shares when it was bought and the value when it is sold.</em>

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Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $150,000 and that Greene is
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Answer:

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