A check is__? (1 point)

Sheldon and Morton formed a partnership with capital contributions of $80,000 and $40,000, respectively. Their partnership agree

Anastaziya [24]

Answer:

The answer is:

Sheldon: $39, 500; Morton: $50, 500

Explanation:

A partnership is a binding agreement between two or more parties to carry on a business. The sole purpose of this agreement is to share skills and expertise so as to generate a profit. In a partnership, the partners have unlimited liability meaning that if the business established by the partners in unable to repay creditors, the creditors are legally allowed to seize the personal assets of the partners to cover the debts owing. However, in accounting for financial performance, the business is considered to be a separate entity (exists independent of the partners). Sheldon and Morton have established a profit-sharing arrangement that compensates Sheldon for the capital contribution (larger interest share) and Morton for his contributions to the business operations (larger salary share). The profit after these deductions is shared equally between the 2 partners. Assuming the given net income is after operations but before partner deductions, the share of the partners is calculated as follows:

Sheldon Morton

Interest $8,000 $4,000

Salaries $10,000 $25,000

Profit share $21, 500 $21, 500

Total share $39, 500 $50, 500

Interest (10% * $80, 000) (10% * $40, 000)

Profit share (50% * $43,000) (50% * $43,000)

Net Profit Share: $90, 000 - $(8,000 + 10,000 + 4,000 + 25,000)= $43,000

8 0

3 years ago

There is nothing that can be done when advertisers record and transmit their advertisement at higher volume than the

Naddik [55]

Answer:

This is false. The TV network is able to limit how often commercials and advertisements are played on their network channel.

7 0

1 year ago

A machine purchased on 1/1/21 for $24,000 and on which $14,400 of Accumulated Depreciation has been recorded through 12/31/23 wa

Amanda [17]

Answer:

Gain on disposal = $7600

Explanation:

As the machine is sold on 1 April 2024, we first need to update the depreciation expense and charge the depreciation to the date. The depreciation has been charged till 1 December 2023. So, we need to charge the depreciation for three more months.

The formula for depreciation expense under straight line method is,

Depreciation expense per year = (Cost - Salvage value) / Estimated useful life

Depreciation expense per year = (24000 - 0) / 5

Depreciation expense per year = $4800 per year

Depreciation expense for three months = 4800 * 3/12 = $1200

Accumulated depreciation 1 April 2024 = 14400 + 1200 = $15600

To calculate the gain or loss on disposal, we first need to determine the net book value of asset and deduct it from the cash received on disposal.

NBV = Cost - Accumulated depreciation

NBV = 24000 - 15600

NBV = $8400

Gain on disposal = 16000 - 8400

Gain on disposal = $7600

6 0

3 years ago

Swift Company was organized on March 1 of the current year. After five months of start-up losses, management had expected to ear

scoundrel [369]

A new income statement for August for Swift company is shown below.

Also, since the president has asked you to check over the income statement and make a recommendation as to whether the company should look for a buyer for its assets.

My recommendation would be to not buy.

Swift Company

Income Statement

For the Month Ended August 31

Particulars Amount (in $) Amount (in $)

Sales .............................................................. 450,000

Cost of goods sold:

Finished goods inventory, August 1 ............... 40,000

Add: Cost of goods manufactured ................. 310,000

Goods available for sale ................................ 350,000

Deduct: Finished goods inventory, August 31.. 60,000 290,000

Gross margin .................................................. 160,000

Selling and administrative expenses ................. 142,000

Net operating income...................................... 18,000

Sam failed to distinguish between product costs and period costs when preparing the August income statement, and he also failed to recognize changes in inventories between the beginning and end of the month.

Once these errors are corrected, the company's financial situation looks much better, and selling the company may not be a good idea.

Hence, my recommendation would be not to buy.

Learn more about income statement:

brainly.com/question/24498019

#SPJ4

7 0

1 year ago

A soccer team made $575. 75 from selling popcorn at a concession stand during a tournament. The popcorn cost the team $65. 0. Wh

kozerog [31]

The profit made by the team would be $(575.75 - 65.00) that is equal to $510.75.
Divide this by 15 players, we get profit of $34.05 per player.

8 0

2 years ago