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AlexFokin [52]
3 years ago
13

Mary, Ann, and Beth are partners. Their capital balances​ are, ​; ​; and ​, respectively. As per the partnership​ agreement, Mar

y receives a profit share of​ 2/9; Ann has​ 4/9; and Beth has​ 3/9. Beth withdraws from the partnership by receiving . What will be the impact of this transaction on the journal​ entries?
Business
1 answer:
77julia77 [94]3 years ago
5 0

Complete Question:

Mary, Ann, and Beth are partners. Their capital balances are $23,000, $41,000 and $30,000 respectively As per the partnership agreement Mary receives a profit share of 2/9, Ann has 4/9, and Beth has 39 Beth withdraws from the partnership by receiving $23.000 What will be the impact of this transaction on the journal entries?

A. Cash will be debited for $30,000

B. Mary. Capital will be debited for S 7,000

C. Ann, capital will be credited for $7,000

D. Beth, Capital will be debited for $30,000

Answer:

D. Beth, Capital will be debited for $30,000

Explanation:

The entry would be reduction in capital by $30,000 because his investment is sold for $23,000 and the remainder $7,000 would be profit for two remaining partners and would be shared with their respective ownership.

The entry is as under:

Dr Beth Capital Account $30,000

Cr               Mary Capital A/c              $2,333            (1/3) of $7,000

Cr               Ann Capital A/c                $4,667            (1/3) of $7,000

Cr              Cash Account                    $23,000

Hence the option D is correct here.

Option A is incorrect because cash wasn't debited with.

Option B is incorrect because Mary capital wasn't debited, it was credited.

Option C is also incorrect because Ann's capital was credited but with (2/3) share.

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0.08x+0.057 (6000-x)=472.5
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3 years ago
During its first year of operations, Silverman Company paid $12,385 for direct materials and $10,600 for production workers' wag
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Answer:

Finished goods inventory final balance= 12, 495

Explanation:

PRODUCTION COST COMPONENTS

  • Direct materials 12,385  
  • Direct work 10,600  
  • Lease and utilities 9,600

TOTAL PRODUCTION COST = 32,585

TOTAL UNITS PRODUCED = 6,650

UNIT COST= (Total Production Cost / Total Units Produced) = 32,585 / 6,650 = 4.9  

FINAL GOODS INVENTORY = (Total Units Produced – Total Units Sales) = 6,650 – 4,100 = 2,250

FINAL GOODS INVENTORY AMOUNT = (Final goods Inventory * Unit Cost) = 2,250 * 4.9 = 12,495

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3 years ago
Compute and select the correct common-size percent for each account title.Total Assets is $700,000 Accounts Payable is $75,000 B
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Answer and Explanation:

The computation for each corrected common-size percent for each account is shown below:

Particulars             Amount                  Percentage

Total assets           $700,000                    100%

Accounts payable $75,000                      10.71%

                                                       ($75,000 ÷ $700,000)

Bonds payable      $225,000             32.14%

                                                       ($225,000 ÷ $700,000)

Common stock      $300,000            42.86%

                                                         ($300,000 ÷ $700,000)

Retained earnings $100,000             14.29%

                                                  ($100,000 ÷  $700,000)

Therefore each one of assetm liabilities and stockholder equity is presented as a percentage of total assets and the same is to be considered

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ART has come out with a new and improved product. As a result, the firm projects an ROE of 27%, and it will maintain a plowback
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Answer:

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Divided=1-retained profits=1-.2=.8

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Answer:

Total present value=$617,523.24

Explanation:

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F=P(e^it)

F=future value

P=present value

i=interest rate

t=time involved i.e 1 year or 2 year

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($200,000/e^10%*1)

Present value of year 0 Cash flow= $150,000

Total present value=$617,523.24

7 0
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