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SashulF [63]
3 years ago
15

Jipsom and Klark were partners with capital account balances of $80,000 and $100,000, respectively. Looney directly paid $32,000

to Jipsom and $40,000 to Klark for 30% of their interests in the partnership. Jipsom and Klark shared income in the ratio of 2:3. They believed that revaluation of the partnership was appropriate when a new partner was admitted. Prepare the journal entries to record the admission of looney to the partnership.
Business
1 answer:
lions [1.4K]3 years ago
3 0

Answer and Explanation:

Before recording the journal entries first we need to do following calculations

Total amount paid is

= $32,000 + $40,000

= $72,000

And the interest ratio is 30%

So fair value of assets is

= $72,000 ÷ 30%

= $240,000

And, the current net assets is

= $80,000 + $100,000

= $180,000

So, the goodwill is

= $240,000 - $180,000

= $60,000

This amount is distributed in 2 : 3 ratio

For Jipson = $24,000

For Klark = $36,000

Now the journal entries are

1. Goodwill $60,000

       To Jipson capital $24,000

       To Klark capital $36,000

(being the goodwill is recorded)

2. Jipson capital ($80,000 + $24,000) × 30%    $31,200

    Klark capital  ($100,000 + $36,000) × 30%   $40,800

           To Looney capital  $72,000

(Being the admission of Looney is recorded)

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Answer:

the  labor rate variance and labor efficiency variance is $2,000 favorable and $3,500 unfavorable

Explanation:

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For Labor rate variance

= $12,000 - (2000 × 7)

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8 0
3 years ago
Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeM
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Answer and Explanation:

The preparation of the schedule of cash collections from sales for October, November, and December is presented below:

Particulars    October      November           December  

Sales           $58,000      $65,000           $72,000  

Cash sales   $14,500             $16,250                  $18,000

                     ($58,000 × 0.25)   ($65000 × 0.25)         ($72,000 ×.25 )

Credit sale   $43,500              $48,750                    $54,000  

                     ($58,000 - $14,500)                  

September account receivable       $35,000      

current month payment      

October credit sale:       $13,050       $30,450  

                   ($43,500 × 30%)       (43500 ×70%)  

November credit sale                 $14,625                    $34,125

                                                           ($48,750 × 30%)            (48750 × 70% )

December credit sale:                                  $16,200  

                                                                                                 ($54,000 × 30% )

Total cash collected         $62,550  $61,325                    $68,325

($14,500 + $35,000 + $13,050)   ($16,250 + $30,450 + $14,625)        ($18,000 + $34,125 + $16,200)

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3 years ago
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Answer:

The correct answer is option D.

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It does not include home production of goods and services, this is because such goods and services do not involve a market transaction. For instance, if a person is baking bread at home he/she is not being paid for it by anyone.

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Answer:

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✓A taller structure will improve the speed at which decisions are implemented.

✓Flatter structures are appropriate for organizations that empower employees to solve customer problems.

✓With a tall structure, supervisors can avoid hearing about customer complaints.

✓A flatter structure will further centralize decision making.

From the question, we are informed about an instance, where The owner of the business where i work has asked for your advice on restructuring the organization. Since I know that customer service is the cornerstone of the company. In this case I will recommend Flatter structures which is the best structure for organization that give empowerment to their employees in order to be able to solve problems associated with customers.

Flatter structure in an organization can be regarded as a structure that posses limited level of management or no level existing between the staff employee and the management of the organization. Flatter structure gives little supervision to the employees though it brings in their involvement when it comes to decision making

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Answer:

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