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Leto [7]
3 years ago
15

T. Bina and M. Valley are partners with equal capital balances of $50,000 each. They agree to let R. Smith invest $20,000 in the

ir partnership for a 25% interest, which means that Smith's beginning capital balance will equal $30,000, with each existing partner granting a $5,000 bonus to Smith. The journal entry to reflect Smith's new capital balance will include a____(debit/credit) to Smith, Capital in the amount of $________.
Business
1 answer:
tensa zangetsu [6.8K]3 years ago
6 0

Answer:

The journal entry to reflect Smith's new capital balance will include a credit to Smith, Capital in the amount of $30,000.

Explanation:

<em>Step 1: Determine Smith's capital balance</em>

Smith's new capital balance can be expressed as shown;

C=I+B1+B2

where;

C=new capital balance

I=Smith's capital investment

B1=T. Bina bonus amount

B2=M. Valley bonus amount

In our case;

C=unknown, to be determined

I=$20,000

B1=$5,000

B2=$5,000

Replacing;

C=(20,000+5,000+5,000)=$30,000

New capital balance=$30,000

<em>Step 2: Record Smith's New Capital balance </em>

Account                                     Debit                     Credit

Cash                                          30,000

Smith                                                                       30,000

A credit to Smith, Capital in the amount of $30,000                                                      

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Suppose the government purposely changes the economy's cyclically adjusted budget from a deficit of 3 percent of real GDP to a s
natulia [17]

Answer:

Contractionary Fiscal Policy is the correct answer.

Explanation:

It is a fiscal policy that includes increasing taxes and decreasing the expenditure to curb inflationary pressures. As the taxes are increased, households have less income to spend and the lower disposable income affects consumption. Tax increments also lead to less profit for businesses. GDP includes the consumption and private investment hence both of them fall as a result. The government tries to magnify the fall in GDP with the multiplier effect.

If the government decreases the expenditures then it would lead to a decrease in GDP, as the government expenditures are a part of GDP.

6 0
3 years ago
How is time like money? I have to write 3 paragraphs over how time is like money.
Leto [7]
When you think of time, you may look at your clock to see what time it is. Say the clock reads 12:25 am, and you're feeling hungry. You happen to have $11.25 in your wallet. This makes you think of the relationship between the money and time

How could money relate to time? Well, time only goes through a sixty minutes an hour. But, while the time goes, you can think, "it's a quarter past 12." This would represent 12:25 p.m. 

A quarter is money, and it was a quarter past 12. That is one way you could relate time to money. You could say, 11:25, 10:25, 9:25, and it could still mean a quarter past 11, 10, 9. "Quarter doesn't have the same meaning for both different terms, but we use the same vocabulary for both!

8 0
3 years ago
Luke is the owner of Fun Times, a U.S. event-planning company. He plans to open an event-planning company, Events &amp; Adventur
Ilia_Sergeevich [38]

Answer:

The answer is d. wholly owned subsidiary

Explanation:

A wholly owned subsidiary is a company whose entire stock is held by another company, called the parent company. In this case Fun Times will own 100% of Events & Adventures'  common stock.

3 0
3 years ago
If Good C increases in price by 30% a pound, and this causes the quantity demanded for Good D to increase by 40%, what is the cr
dalvyx [7]

Answer:

1.3

Explanation:

Given:

If Good C increases in price by 30% a pound.

This causes the quantity demanded for Good D to increase by 40%.

Question asked:

What is the cross-price elasticity of the two goods ?

Solution:

We can find the cross-price elasticity of the two goods by this formula:

E_{c}  = \frac{ Percent\  change\ in \a \ quantity \ of \ good \ D}{Percent \ change\  in\ the\  price\  of \ good\  C}

E_{c}  = \frac{40}{30}= 1.3

When Good C increases in price by 30% which causes the quantity demanded for Good D to increase by 40%, then the cross-price elasticity of the  is Good C and  Good D is 1.3.

4 0
3 years ago
Can I get help on this job application please ?
Fynjy0 [20]

Answer:

The answer is below.

Explanation:

Most likely to do:

"Ask your store Manager if you can hold the markdown price for them so they can get it for the same price when it is back in store."

Doing the above will ensure you retain the customer's trust, and while you didn't direct your customer to a competitor, which is detrimental.

Least Likely to do:

"Offer to provide the address and phone number for the nearest store, and explain that stores get frequent shipments with new items."

Doing the above is detrimental to your store, as you will be sending your customers to a direct competitor.

6 0
2 years ago
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