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V125BC [204]
4 years ago
8

Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable wit

h a face amount of $45,000 and equipment with a cost of $175,000 and accumulated depreciation of $101,000. The partners agree that the equipment is to be valued at $68,200, that $3,400 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,600 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $22,000 and merchandise inventory of $45,500. The partners agree that the merchandise inventory is to be valued at $49,000.Required:
Journalize the entries to record in the partnership accounts (a) Jesse’s investment and (b) Tim’s investment. Refer to the Chart of Accounts for exact wording of account titles.
Business
1 answer:
Murljashka [212]4 years ago
6 0

Answer:

The Journal entries with their narrations of Jesse’s investment and Tim’s investment is shown below:-

Explanation:

a. Jesse’s investment

Accounts Receivable Dr,                      $41,600

($45,000 - $3,400)

Agreed price of equipment Dr,             $68,200

      To allowance for doubtful debts                 $1,600

       To capital account                                       $108,200

(Being Jesse's investment is recorded)

b. Tim’s investment

Cash Dr,                                           $22,000

Agreed price of inventory Dr,             $49,000

           To Tim capital                                         $71,000

(Being Tim's investment is recorded)

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shusha [124]

Answer: $1942.89

Explanation:

Since the car will cost $120,000 and it will be financed with a 84 month contract having a nominal rate of 9.20%, then the monthly payment will be:

= PMT(9.2%/12, 84, -120000)

This will be slotted into the Excel calculator and the answer gotten will be $1942.89

Therefore, the monthly payment will be $1942.89.

6 0
4 years ago
Based on the following information, determine the location quotient for Amusement City and whether this city has a competitive a
Lelu [443]

Answer:

a. 0.23; No, the city does not have a competitive advantage in this industry

Explanation:

Calculation to determine the location quotient for Music City and whether this city has a competitive advantage in the entertainment industry

Location quotient for Music City= (3020/ 656,785)/ (2,160,970/ 106,201,232)

Location quotient for Music City=0.004598/0.020347881

Location quotient for Music City= 0.225

Location quotient for Music City= 0.23 (Approximately)

Based on the above calculation the city does NOT have a competitive advantage in this industry.

6 0
3 years ago
Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $201,000, expenses of $111,700, and withdrew $24,400 from
Andreyy89

Answer:

C. Debit Income Summary $64,900; credit Retained Earnings $64,900

Explanation:

revenues          201,000

expenses         <u> (111,700)</u>

<em>income:             89,300</em>

<em>withdrawals   </em><u><em>  (24,400)   </em></u>

<em>net:                    64,900</em>

<em />

The net income and withdrawlas will be closest against income summary and then, this balance will be transfered into retained earnings

7 0
3 years ago
American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. I
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Answer: 19.56%

Explanation:

Effective Rate of Return is the rate that takes into account, the compounding influence of interest rates in a given period.

It is calculated with the formula,

= ( 1 + r/n) ^ n - 1

Where

r = APR

n = no of compounding periods in a year

Interest is paid monthly so nnumber of periods will be 12.

Therefore,

EFF = ( 1 + 18%/12)¹² - 1

EFF = 19.56%

5 0
3 years ago
A company estimates that an average-risk project has a WACC of 10 percent, a below-average-risk project has a WACC of 8 percent,
prisoha [69]

Answer:

B) Project B has below-average risk and an IRR = 8.5 percent.

Explanation:

Since the evaluation is based on IRR, use IRR rule that says you accept a project if its IRR > Cost of capital(WACC in this case)

Project A's IRR of 9% is < 10% WACC for average risk projects hence reject it.

Project B's IRR of 8.5% is > 8% WACC for below- average risk projects hence accept it.

Project C's IRR of 11% is < 12% WACC for above- average risk projects hence reject it.

8 0
3 years ago
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