1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
SashulF [63]
2 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]2 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)

You might be interested in
1) If you make superior returns by buying stocks after a 10% fall in price and selling stocks after a 10% rise, this is consiste
zhenek [66]

Answer:

False

Explanation:

It is FALSE that If you make superior returns by buying stocks after a 10% fall in price and selling stocks after a 10% rise, this is consistent with the weak form of EMH.

Weak Form of Efficiency Market Hypothesis states that individuals cannot use past knowledge, facts, or occurrence about stock to determine its future price.

In other words, past data or evidence has no connection with existing market prices.

Hence, if you make superior returns by buying stocks after a 10% fall in price and selling stocks after a 10% rise, that shows the existence of pattern or past information about the stock rising or falling prices determine future occurrence. This situation contradicts the Weak form of EMH

6 0
2 years ago
ash Flows from Investing Activities During the year, Murray Company sold equipment with a book value of $125,000 for $175,000 (o
NeTakaya

Answer:

Investing cash flow from current year = -$250,750. This means that the company invested $250,750 in purchasing new equipment and land during the year.

Explanation:

cash flow from investing activities = money received from the sale of assets - money spent purchasing new assets

  • money received from the sale of assets = $175,000
  • money spent purchasing new equipment = plant & equipment year 20x1 - plant & equipment year 20x2 + cost of old equipment = $1,000,000 - $1,025,000 + $225,000 = $200,000
  • money spent purchasing new land = land 20x2 - land 20x1 = $725,750 - $500,000 = $225,750  

Cash flow from investing activities = $175,000 - $200,000 - $225,750 = -$250,750

5 0
2 years ago
Buyer Beware Toy Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled pro
maria [59]
I think it $1 per unit
8 0
1 year ago
The difference between supply and quantity supplied is that "supply" refers to the ___________ and "quantity supplied" refers to
yanalaym [24]

Answer:

a. curve; point on the curve 

Explanation:

Supply refers to the supply curve. Changes in supply leads to movement of the supply curve either to the left or to the right.

Factors that cause change in supply:

A. Cost of production

B. Weather

C. Taxes

D. Number of suppliers

Quantity supplied is a point on th curve with reference to price. Changes in quantity supplied is represented by movement either up or down the supply curve. Changes in quantity supplied is caused only by changes in price.

I hope my answer helps you

4 0
3 years ago
Shondra is thinking of making payments for her laptop by setting up automatic withdrawals with the store. What must
torisob [31]

Answer:

Shondra should be sure she will have enough in her account to be able to make the monthly payments.

Explanation:

5 0
3 years ago
Read 2 more answers
Other questions:
  • Cody believes that Delta Corporation has discriminated against him on the basis of gender. Cody files a suit against Delta under
    9·1 answer
  • Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $45,000 and a remain
    12·1 answer
  • Becoming the candy lady tips for advertising and employing
    14·1 answer
  • Which of the following items of property would be included in the gross estate of a decedent who died in 2018? Select all that a
    10·2 answers
  • Sunny Corporation began the year with cash of $ 141, 000 and land that cost $ 55, 000. During the year Sunny earned service reve
    14·1 answer
  • While watching a movie, Daysha notices that a few brands have been conspicuously integrated with its screenplay. The main charac
    9·1 answer
  • Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explan
    14·1 answer
  • Reunion BBQ has $4,000,000 of notes payable due on March 11, 2017, which Reunion intends to refinance. On January 5, 2017, Reuni
    7·1 answer
  • Data entered into a computer is called a...
    12·1 answer
  • Which of the following is an example of a general partnership?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!