Answer:
15.01%
Explanation:
The computation of the return on equity is shown below:
Return on equity = Net income ÷ Equity at the end of 2010 × 100
where,
Net income is $539
And, the equity at the end of 2010 is
= Common Stock + Retained Earnings
= $2,890 + $700
= $3,590
So, the return on equity is
= $539 ÷ $3,590 × 100
= 15.01%
We simply applied the above formula to determine the return on equity
The answer is the client is dissatisfied because measuring has nothing to do with weather the client likes the couch or not.
Answer:
$45,600
Explanation:
Particulars Amount
Redding capital $18,000
Potential loss of non-cash Assets (138,000*20%) <u>$27,600</u>
Maximum amount contributed by Redding, Capital <u>$45,600</u>
So, the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance is $45,600.
Answer and Explanation:
Any additional cost incurred on account of improving the performance of long term asset is called capital improvement.
1. New component was purchased to improve the efficiency of the equipment.
Journal entry:
Particulars Debit Credit
Equipment $22,000
Cash $22,000
(Being component purchased for cash)
Equipment is debited as capital improvements are made.
2. In the third year, some repair expense incurred for maintaining the efficiency of equipment.
Journal entry:
Particulars Debit Credit
Repair expense $6,250
Cash $6,250
(Being repair expense incurred and paid in cash)
increase in expenses is debited and decrease in asset (cash) is credited.
3. Since repairs is improving the useful life of the equipment, it is considered capital improvement, so the same will be charged to the equipment.
Journal entry:
Particulars Debit Credit
Equipment $14,870
Cash $14,870
(Being repair expense charged to equipment)
Answer:
Entrepreneurial capital
Explanation:
Andrew has been able to identify his business opportunities, take risks and make difficult decisions and been able to renew capitals, learn ability to learn and update the company's knowledge base.
Entrepreneurial capital is focused on sustaining competitive advantage which is achieved with greater enthusiasm when human and relational capitals are transformed into structural capital.
