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2 years ago

The following transactions were completed by the company.

Business

1 answer:

aleksandrvk [35]2 years ago

6 0

Answer:

Assets : Increase by $6,000

Liabilities : No effect

Equity : Increase by $6,000

Assets : Increase by $4,500

Liabilities : No effect

Equity: Increase by $4,500

Assets : Decrease $1,650

Liabilities : No effect

Equity : Decrease $1,650

Assets : Increase $2,250, Decrease $2,250

Liabilities ; No effect

Equity: No effect

Assets : Decrease $800

Liabilities : No effect

Equity : Decrease $800

Explanation:

Recognize Revenue and Assets of Cash

Recognize Revenue and Assets in Trade Receivable

Recognize an expense and de-recognize the Assets of Cash

Recognize Assets in Cash and de-recognize Assets in Accounts Receivables.

Recognize an Expense and de-recognise the Assets in Cash

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Brooke and John formed a partnership. Brooke received a 40% interest in partnership capital and profits in exchange for contribu

spin [16.1K]

Answer:

$102,000

Explanation:

According to 26 US code Section 704(c) - Partner's distributive share :

Taxable gain to be recognized from sale = Sale value - ( Partner's share * Fair market value )

Brooke contributed the land, the gain realized before the land was contributed = $120,000 - $90,000 will be allocated entirely to her. She will also be allocated 40% of the gain after the contribution was made = ($150,000 - $120,000) x 40% = $30,000 x 40% = $12,000.

So the total gain recognized by Brooke will be $90,000 + $12,000 = $102,000.

Partnerships are pass through entities, the partners are taxed, not the partnership itself.

3 0

2 years ago

arter Company sells merchandise on account for $4,000 to Hannah Company with credit terms of 2/10, n/30. Hannah Company returns

timama [110]

Answer:

The answers are:

Cr Accounts receivable $4,000
Dr $3,332 Cash
Dr $68 Sales discount
Dr $600 returned merchandise (damaged)

Explanation:

The credit terms of 2/10, n/30 means that if Hannah Company pays within ten days, they will get a 2% discount, or they have thirty days to pay the full receipt.

Hannah's check should be for:

($4,000 - $600) x 0.98% = $3,400 x 0.98% = $3,332

Arter Company should record the following entries:

Cr Accounts receivable $4,000

Dr $3,332 Cash

Dr $68 Sales discount

Dr $600 returned merchandise (damaged)

6 0

2 years ago

Fact pattern 33-1a berry indicates that she is acting as an agent on behalf of an unidentified client—cuisine catering, llc—when

posledela

Liability to Desean for non performance of the contract may be imposed on BERRY AND CUISINE CATERING.
Berry is required by the law to perform the duties in the contract agreement, failure to do this will creates liability for Berry and in that case, both Berry and Cuisine catering will be liable, because Berry had said that she is working on behalf of Cusine catering, thus, Cusine catering is already a part of the contract.

8 0

2 years ago

A company's 2013 year-end balance sheet included the following: Jan. 1 Dec. 31 Accounts Receivable $80,000 $100,000Inventory $60

denis-greek [22]

Answer:

B. $170,000.

Explanation:

X company

statement of cash flow

For the year ended

Net income (balancing) (Note - 1) $170,000

Cash flow from operating activities

Depreciation expense $25,000

Increase in account receivable $(20,000)

Increase in inventory $(10,000)

decrease in Prepaid Expenses $25,000

Decrease in Accounts Payable $(20,000)

Increase in Deferred Revenue $30,000

Cash flow $30,000

Net cash flow from operating activities $200,000

Note 1:

Net cash flow from operating activities - Total changes in working capital= $200,000-$30,000 = $170,000.

3 0

2 years ago

Portfolio diversification eliminates: Multiple Choice all investment risk. the portfolio risk premium. market risk. unsystematic

kaheart [24]

Answer:

Unsystematic risk

Explanation:

The portfolio theory posits that the total risk on a collection of assets (i,e a portfolio) can be reduced by spreading the invested fund into different assets that are uncorrelated.

According to this model, the total risk on a portfolio is divided into systematic and unsystematic risks. The theory assumed by diversification, the unsystematic risk associated with a portfolio is eliminated.

Unsystematic risk essentially are those unique individual assets for example. if we invest in company stock, risk associated with factors like bad management , law suit against a company, defect in company;s products are example of unique or systematic risks

7 0

2 years ago