Answer:
$94,000
Explanation:
Henry Jones contributed a cash of $53,300 to the partnership
The equipment had a book value of $25,500 and a market value of $32,900
The inventory had a book value of $51,900 and a market value of $16,000
The partnership assumed a note payable of $14,500 that was owed by Henry
Therefore, the amount that should be recorded in Henry's capital can be calculated as follows
= $53,300+$39,200+$16,000-$14,500
= $108,500-$14,500
= $94,000
Hence $94,000 should be recorded in Henry's capital account
Answer and Explanation:
The matching is as follows:
1. Cash receipts journal - since cash is received
2. General journal - since the items is returned
3. Purchase journal - since purchase is done
4. Purchase journal - since purchase is done
5. Cash disbursement journal - since cash is paid
6. Cash disbursement journal - since cash is paid
7. Purchase journal - since purchase is done
8. General journal - since expenses are recorded
9. General journal - since the items is returned
10. Cash receipts journal - since cash is received
Answer:
See below
Explanation:
Sales
$2,425,000
Less:
Cost of goods sold
($1,335,000)
Administration and selling expense
($635,000)
Depreciation
($450,000)
EBIT
$5,000
Less:
Interest
($275,000)
No tax
Net income/loss
-$270,000
Operating cash flow = $5,000 + $450,000 - $0 = $500,000
Cash flow from assets = Operating cash flow - Change in networking capital - Net capital spending
= $500,000 - $0 - $0
= $500,000
Cash flow to shareholders = Dividends - New equity
= $0 - $0
= $0
Cash flow to creditors = Cash flow from assets - Cash flow to shareholders
= $500,000 - $0
= $500,000
Therefore, new long term debt added during the year is;
= Interest - Cash flow to creditors
= $275,000 - $500,000
= $225,000
Answer:
$12
Explanation:
Calculation to determine the lowest acceptable transfer price from the perspective of selling division
Using this formula
Lowest Transfer Price = Variable Costs per unit - Internal Savings + Opportunity Cost
Where,
Variable Costs per unit = $12
Internal Savings = $0
Opportunity Cost = $0
Let plug in the formula
Lowest Transfer Price = $12-$0+$0
Lowest Transfer Price = $12
Therefore the lowest acceptable transfer price from the perspective of selling division is $12
Answer:
-$1,035,000
Explanation:
The computation of the cash flows from investing activities is presented below:
Cash flows from investing activities
Loans made to affiliated corporations -$1,340,000
Add: Process from sale of equipment $305,000
Net cash used by investing activities -$1,035,000
The loan made is an cash outflow whereas the proceeds from sale of an equipment is cash inflow so we did the adjustment accordingly
