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yarga [219]
3 years ago
11

Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as

follows:
Floyd $50,000
Merriam 23,000

They agreed to admit Ramelow into the business for a one-fifth interest in the new partnership. Ramelow contributes $27,000 cash in exchange for the partnership interest. Assume that Floyd and Merriam shared profits and losses in a 3:1 ratio before the admission of Ramelow. Which of the following is the correct journal entry to record the above admission?

a. Cash 27,000
Ramelow, Capital 27,000

b. Cash 27,000
Merriam, Capital 7,000
Floyd, Capital 20,000

c. Merriam, Capital 20,000
Floyd, Capital 7,000
Ramelow, Capital 27,000

d. Cash 27,000
Floyd, Capital 5,250
Merriam, Capital 1,750
Ramelow, Capital 20,000
Business
1 answer:
Serga [27]3 years ago
3 0

Answer:

d. Cash 27,000

Floyd, Capital 5,250

Merriam, Capital 1,750

Ramelow, Capital 20,000

Explanation:

First of all we need to calculate the total capital after admission

Total Capital after admission = $50,000 + $23,000 + $27,000 = $100,000

Share of Ramelow = Total Capital x Partnership share = $100,000 x 1/5 = $20,000

Actual Payment made by Ramelow = $27,000

Amount of goodwill paid by Ramelow = $27,000 - $20,000 = $7,000

This goodwill will be distributed between Floyd and Merriam as per their partnership ratio

Share of Goodwill ro Flyod = $7,000 x 3/4 = $5,250

Share of Goodwill ro Merriam = $7,000 x 1/4 = $1,750

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Because transit tends to be congested in this country, many people prefer to shop in their local neighborhoods. They tend to go
marta [7]

Answer: A few large flagship stores located in big cities; High-end pricing( Option A and D)

Explanation:

Because the people in this country usually shop close to their home, it would not be wise for a business to opt for few large flagship stores rather than a larger number of the smaller stores.

It would also be unwise for such business to sell mainly high-end products because the shoppers are used to good deals and haggling. Such company would be smart, to sell the products individually, because bulk purchases would make little sense for people that make frequent trips to the store.

Also, in a country with a congested transportation, an easy-to-access store locations will be important and having product experts on the floor who answers the questions of customers’ would appeal to network-oriented local culture.

3 0
3 years ago
Mary wants to split the refund between her savings and checking accounts. How is this accomplished, if possible
Studentka2010 [4]

This is possible to do. In order to do so Mary has to do it electronically through the use of a tax soft ware or an IRS Free File.

<h3>What is a split refund?</h3>

This helps you to divide your refund into given proportions as you may like. It puts your deposit funds into up to three various accounts.

You have to file a tax return to do this and also fill some forms.

Read more on the split refund here:

brainly.com/question/2142559

7 0
2 years ago
City is a product of the Chester company which is primarily in the Nano segment, but is also sold in another segment. Chester st
mash [69]

Answer:

700 units

Explanation:

Since it is given that the 700 units if city are sold to the nano segment and it is also mentioned that the competitive environment remains unchanged so the city demand of the product for the next year is also remains same as there is no change in the competitive environment

Hence, the demand fro the product in the next year is 700 units

6 0
3 years ago
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the nec
liberstina [14]

Answer:

(A)

The total relevant cost would be: 495,000

Buy 15,000 x 35 = 525,000

It would be better to keep producing.

(B) relevant cost 495,000

Buy 525,000 - 150,000 = 375,000

In this scenario is better to buy the procuct, as this alternative will come with the 525,000 cost but 150,000 contribution margin in the new product

Explanation:

The relevant cost would be:

Direct Materials                         14

Direct labor                                10

Variable Overhead                     3

traceable fixed overhead          6

Total                                         33

15,000 x 33 = 495,000

<u>The depreciation is a sunk cost,</u> already incurred when the machine was purchased. Is not relevant to decide wether to produce or buy

The potencial new product would be opportunity cost:

It should be considered as a decrease in the cost of buy the product

7 0
3 years ago
In October 2010, the amount of money held by individuals and companies was $987.1 billion; checkable deposits owed by individual
frutty [35]

Answer:

$1,554.4

Explanation:

Given:

The amount of money held by individuals and companies = $987.1 billion

Checkable deposits owed by individuals and companies = $567.3 billion

Money market funds = $1.045 trillion

Savings deposits = $562.3 billion

Time deposits = $324.2 billion

Now,

The M1 amount is calculates as:

= The amount of money held by individuals + Checkable deposits owed by individuals and companies

= $987.1 billion +  $567.3 billion

= $1,554.4

8 0
3 years ago
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