The majority of new businesses formed in the coming years will be _______ or partnerships with two or three owners.

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:

sertanlavr [38]

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.

8 0

3 years ago

William installs custom sound systems in cars. If he installs seven systems per day, his total costs are $300. If he installs ei

Margarita [4]

Answer:

D. $100

Explanation:

Given: William install 7 system per day at the cost of $300.

William install 8 system per day at the total cost of $400.

Remember, If the marginal cost curve is upward-sloping, this means that as output increase, marginal costs will also increase.

Marginal cost is an additional cost incurred in producing additional unit of output.

Now, finding additional payment that eighth customer has to pay.

Change in marginal cost= $Cost\ incurred\ in\ installing\ 8\ system - cost\ incurred\ in\ installing\ 7\ system$

⇒ Change in marginal cost= $\$400-\$300$

∴ Change in marginal cost= $\$ 100$

Hence, there is an increase in marginal cost by $100 as output increases, therefore, William will install eight sound systems per day only if the eighth customer is willing to pay at least $100.

5 0

3 years ago

The placement of an employee in another job for which the duties, responsibilities, status, and remuneration are approximately e

soldier1979 [14.2K]

The placement of an employee in another job for which the duties, responsibilities, status, and remuneration are approximately equal to those of the previous job is known as a: transfer. Sometimes a lateral

8 0

3 years ago

You book a hotel online, and the registration process is clear and streamlined. This is an example of a(n) ______________ proces

sveticcg [70]

Answer:

The correct word for the blank space is: automated; high value to customers.

Explanation:

Most online operations nowadays are automated which implies not having an employee behind a computer to satisfy customers' needs since they are too basic that can be all processed with the use of a server. However, the automation does not imply consumers undervalue the help obtained. Otherwise, the automation helps the process be faster which ends up representing high value for most customers.

6 0

3 years ago

Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December, he performed $

drek231 [11]

Answer: a. $14,000

b. $14,106

c. January

2. $15,535

Explanation:

a. If Hank sends the bill in December.

Tax rate is 30% this year.

Amount is $20,000

After Tax Income = 20,000 * (1 - tax)

= 20,000 ( 1 - 30%)

= $14,000

b. If Hank pays Next year

Tax rate is 33%

After tax return rate of 12%

Amount is 20,000

Tax = 20,000 * 33%

= $6,600.

Because this is next year, the present value of the tax needs to be computed for better comparison.

With an after tax return of 12%, the PV will be,

= 6,600 * PV factor ( 12%, 1 period)

= 6,600 * 0.893

= $5,894

The income therefore will be,

= $20,000 - 5,894

= $14,106

c. Hank should pay in January as he would make more income.

2. Tax rate is 25% next year and income is to be received next year.

Tax = 20,000 * 25%

= $5,000

PV of $5,000 = 5,000 * PV Factor (12%, 1 period)

= 5,000 * 0.893

= $4,465

After tax income = 20,000 - 4,465

= $15,535

5 0

3 years ago