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Verizon [17]
3 years ago
12

Brief Exercise 12-1 Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $27,000 cash, an

d Nichols contributes $18,000 cash and equipment having a book value of $6,300. Prepare the entry to record Nichols’s investment in the partnership, assuming the equipment has a fair value of $9,000.
Business
1 answer:
Marysya12 [62]3 years ago
8 0

Answer:

The journal entry is as follows:

Cash A/c Dr. $18,000

Equipment (Fair value) A/c Dr. $9,000

           To N's  capital                            $27,000

(To record the investment bought by Nichols)

Workings:

Cash contributed by Nichols = $18,000

Equipment's Book value = $6,300

Fair value of equipment = $9000

Nichols capital = $18,000 + $9,000

                         = $27,000

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Another bank is also offering favorable terms, so Rahul decides to take a loan of $22,000 from this bank. He signs the loan cont
Wittaler [7]

Answer:

$22,897.74

Explanation:

Given:

Loan amount (P) = $22,000

rate (R) = 8% = 8/100=0.08/365 = 0.000219178082

Number of days(n) = 6 month = (6 x 365)/12 = 182.5

Total Amount = ?

A = P(1+ I)^n\\A = 22,000(1+0.000219178082)^{182.5}\\=22,000(1.000219178082)^{182.5}\\=22,000(1.04080658)\\= 22,897.744

Therefore, he have to pay $22,897.74 to the bank.

5 0
3 years ago
On January 1, 2018, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truc
Norma-Jean [14]

Answer:

option (D) loss, $3,000

Explanation:

Given:

price of the truck = $48,000

estimated residual value = $8,000

Exchange price of the truck = $60,000

Trade allowance = $35,000

Since, straight line depreciation is given, thus,

Total depreciation = \frac{\textup{48,000−8,000}}{\textup{8}}

or

Total depreciation = $5,000 per year

Therefore,

the book value after two years

= Price of truck - total depreciation in two years

or

= $48,000 − ($5,000 × 2 years)

= $38,000

Now,

a trade allowance received ( i.e $35,000 ) is less than the book value

therefore a loss is recorded

The amount of loss = (Book value - trade allowance received)

or

The amount of loss =  $38,000 - $35,000 = $3,000

Hence, correct answer is option (D) loss, $3,000

5 0
2 years ago
Acme Manufacturing is producing $4,000,000 worth of goods this year and expects to sell its entire production. It also is planni
Gemiola [76]

Answer:

a.$1,650,000 $1,500,000

b. $1,500,000 $1,500,000

c.$1,300,000 $1,500,000

Assuming that Acme’s situation is similar to that of other firms, output will equal to short-run equilibrium output in CASE B

Explanation:

Actual Investment, Planned investment

a.$1,650,000 $1,500,000

b. $1,500,000 $1,500,000

c.$1,300,000 $1,500,000

Assuming that Acme’s situation is similar to that of other firms, output will equal to short-run equilibrium output in CASE B

Acme’s planned investment in every case is $1,500,000.

Therefore the key to this problem is to find the amount of unplanned inventory investment Acme makes then add this to their planned investment to find Acme’s actual investment

a. If Acme sells $3,850,000 worth of goods, it has unplanned inventory investment of $150,000 and total actual investment of $1,650,000.

$4,000,000-$3,850,000=$150,000

$1,500,000+$150,000=$1,650,000

b. If Acme sells $4,000,000 worth of goods as it planned, its actual investment of $1,500,000 isequal to its planned investment

$4,000,000-$4,000,000= $0

$0+$1,500,000=$1,500,000

c. If Acme sells $4,200,000 worth of goods, it must draw down $200,000 worth of goods from itsexisting inventory, implying that inventory investment is –$200,000.

$4,000,000-$4,200,000= -$200,000

Acme’s actual investment in this case is $1,500,000 – $200,000 = $1,300,000.

Output equals short-run equilibrium output in CASE B , so planned spending and actual spendingare equal.

8 0
3 years ago
In most cases, the law requires that you have an emission test every two years at the time of registration or at time of sale.
dsp73

Answer:

A) true

Explanation:

This requirement applies mostly to used cars. Some states do not require emissions inspections for vehicles that are less than 4 or 6 years old (depends on the state, e.g. Arizona's threshold is 6 years). Other states also allow certain old vehicles to not pass emissions inspections (e.g. Massachusetts does not requires vehicles over 15 years old to pass emissions inspections).

Those vehicles that do not pass the emissions inspections will not be registered by the Department of Motor Vehicles (DMV), that means they will not receive a license plate so it is illegal to drive them.

4 0
3 years ago
Attention!!! Auction is about to happen!!!!!<br><br> 1st one=50minecoins<br> 2nd=60minecoins
artcher [175]

Answer:

lol

Explanation:

4 0
2 years ago
Read 2 more answers
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