Rex & Jacks Novelty Store, a partnership business, has planned to liquidate. Your task is to help them liquidate the partner
ship.Listed below are the remaining assets and liabilities of the business. Rex and Jack share all profits and losses equally.Assets:Cash in Bank $20,000Accounts Receivable $12,000Merchandise Inventory $42,000Equipment $60,000 Liabilities:Accounts Payable $15,500Partners’ Equity:Rex’s capital $59,250Jack’s capital $59,250Liquidation transactions are listed below:Customers will have to pay their accounts in full before the liquidation date.Merchandise inventory was sold for $40,000 resulting in a loss of $2,000 to the partnership.Equipment was sold to a local retailer for $70,000 resulting in a gain of $10,000.Accounts payable will be paid in full.Instructions:Journalize and post the journal entries.Calculate the share of each partner at end of the liquidation.
1 answer:
Answer:
The share of each partner at end of the liquidation is: 63,250.00
For Journal entries see attached file
Explanation:
The share of each partner at end of the liquidation is calculated as follows:
Liquidation balance = Asset – Liabilities + Net gain for Discontinued Operations
Liquidation balance = 134,000.00 – 15,500.00 + 8,000.00
Liquidation balance = 126,500.00
As Rex and Jack share all profits and losses equally, 63,250.00 correspond to each one.
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Answer:
perfect competitor
Explanation:
Given:
Firm's total revenue when 10 units are sold = $100
Firm's total revenue when 11 units are sold = $110
Average Revenue =
or
Average Revenue = = $10
and,
the marginal revenue = $110 - $100 = $10
Since,
the average revenue and the marginal revenue for the firm is equal,
therefore, the is a perfect competitor
Answer:
D. Tasha: "If coffee drinkers expect the price of coffee to rise next month, then current demand will go up and lead to a price increase this month."
This is the only one with incorrect economic analysis
Explanation:
A. is correct because a shortage of supply would drop the price as we can see in the Graph 1 with the supply curve.
B. is correct because if the two goods are substitues then a lower price for caffeinated soft drinks like Mountain Dew would cause the consumer demand for coffe to go down because the consumers would prefer the good with lower price, rising the demand for Mountain dow in detriment of coffe.
C. is correct as we can see in the Graph 1, the increse in the demand would generate a higher price but it would make the demand go back to D1
D. is incorrect because if coffee drinkers consume more coffee this monht the price would lower.
Answer:
Explanation:
a) x1 = number of unit product 1 to produce , and
x2 number of unit product 2 to produce
A linear program that will maximize world light profit is the following
maximize subject to
Unit 1 is used both in products in 1 : 3 ratio which can be a maximum of 200 unit 2 is used in 2 : 2 ratio which can be maximum of 300
So, this can be written as the inequations
Profit functio is p = 0ne dollar on product A and two dollar on product B
= x + 2y
Now , we find a feasible area whose extremeties will give the maximum profit for, the graph is ( see attached file )
So on the graph, we can get the other extremeties of the shaded regional so which will not give maximum profit ,
Thus , the maximum possible profit is
p = ($1 * 125) + ($2 * 25)
= $175
