What topic should not be discussed in a salon (Cosmetology)

Joe Keho and Mike McLain share income on a 6:4 basis. They have capital balances of $90,000 and $70,000, respectively, when Lind

lions [1.4K]

Answer:

A.

Joe’s Capital (existing partner) = $90,000

Mike’s Capital (existing partner) = $70,000

Profit-sharing ratio = 6:4

Admission of Linda (new partner) with bonus to existing partners:

$100,000 cash contributed for 25% share

So, implied value of partnership firm after admission = $100,000 / 25% = $400,000

However, actual value of partnership firm after admission will be = $90,000 + $70,000 + $100,000 = $260,000

Linda’s Capital in new partnership = 25% * $260,000 = $65,000

However, Linda is contributing $100,000

So, bonus accruing to existing partners = $100,000 - $65,000 = $35,000

Bonus to be split in profit sharing ratio

Bonus accruing to Joe = $35,000 * 6/10 = $21,000

Bonus accruing to Mike = $35,000 * 4/10 = $14,000

Joe'sCapital

$21,000

Mike'sCapital

$14,000

Lindia's Capital

$65,000

b. Admission of Linda (new partner) with bonus to the new partner:

$36,000 cash contributed for 25% share

So, implied value of partnership firm after admission = $36,000 / 25% = $144,000

However, actual value of partnership firm after admission will be = $90,000 + $70,000 + $36,000 = $196,000

Linda’s Capital in new partnership = $196,000 * 25% = $49,000

However, contribution by Linda= $36,000

So, bonus accruing to Linda = $49,000 - $36,000 = $13,000

Joe’s share in bonus to Linda = $13,000 * 6/10 = $7,800

Mike’s share = $13,000 * 4/10 = $5,200

Joe'sCapital

$7,800

Mike'sCapital

$5,200

Lindia's Capital

$49,000

6 0

3 years ago

On April 1, 2016, the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment cost $57,200, ha

Harman [31]

Answer:

2016 Depreciation

Dr depreciation expense $5720

Cr Accumulated depreciation $5720

2017 Depreciation

Dr depreciation expense $5720

Cr Accumulated depreciation $5720

Journal entries for 2018 expenditure

Dr repairs and maintenance $2900

Dr Equipment account $11850

Cr Cash account $14750

2018 Depreciation

Dr depreciation expense $4800.83

Cr Accumulated depreciation $4800.83

Explanation:

There are two policies for depreciating non-current asset especially when it is acquired part-way through the year like we have here, namely full year depreciation in the year of purchase and none in the year of disposal or proportional depreciation throughout the useful life,I am adopting the former in this question.

Formula for depreciation=cost-residual value/useful life

Yearly depreciation is ($57200-$0)/10=$5720

However,after two years the book value is calculated thus:

Book value=$57200-($5720*2)=$45760

additional cost incurred in enhancing the capacity of the asset would be added : $45760 +$11,850=$57610

Since the useful life has also been reviewed up to 12 years, the depreciation from now on is $57610/12=$4800.83

5 0

3 years ago

Read 2 more answers

Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year, Biscayne Bay Water Inc. reacquired

nordsb [41]

Answer:

treasury stock 1,645,600 debit

cash 1,645,600 credit

--to record he purchase of TS--

cash 925,000 debit

treasury stock 850,000 debit

additional paid-in TS 75,000 debit

-to record sale of TS above their cost--

cash 760,500 debit

additional paid-in TS 35,100 debit

Treasury Stock 795,600 credit

Explanation:

treasury stock cost:

24,200 shares x $68 each = 1,645,600

sale of TS

proceeds: 12,500 x $74 =925,000

cost: 12,500 x $68 = 850,000

additional paid-in TS 75,000

second sale of TS:

proceeds _ 11,700 x $65 760,500

Cost: 11,700 x $68 795,600

additional paid-in TS 35,100

6 0

3 years ago

Rent collected in advance is: Multiple Choice A shareholders' equity account in the balance sheet. A temporary account, not in t

gulaghasi [49]

Answer:

A liability account in the balance sheet.

Explanation:

When rent is collected in advance, the entries required to be recognized at the point of collection is as follows;

Debit Cash account

Credit Unearned/Deferred rental revenue

The cash account is an asset while the Unearned/Deferred rental revenue is a liability account.

As such, the collection of rent in advance is A liability account in the balance sheet.

3 0

3 years ago

In a corporation, the shareholders receive 1 vote for each share of stock they hold, which is usually based on the amount of mon

Umnica [9.8K]

Answer:

shareholders A and B will each have 30 votes (each invested $30,000)

shareholders C and D will each have 20 votes (each invested $20,000)

shareholder E will have 10 votes (only invested $10,000)

total number of possible votes = (30 x 2) + (20 x 2) + 10 = 110 votes

any decision must be approved by more than 50% of the votes, but since the votes are bundled in tens, 60 votes are needed.

Stockholders number of

A B C D E positive votes win

yes no no no no 30 no

yes yes no no no 60 yes

yes no yes no no 50 no

yes no no yes no 50 no

yes no no no yes 40 no

yes yes yes no no 80 yes

yes yes no yes no 80 yes

yes yes no no yes 70 yes

yes yes yes yes no 100 yes

yes yes yes no yes 90 yes

yes yes yes yes yes 110 yes

no yes no no no 30 no

no yes yes no no 50 no

no yes no yes no 50 no

no yes no no yes 40 no

no yes yes yes no 70 yes

no yes yes no yes 60 yes

no yes no yes yes 60 yes

no yes yes yes yes 80 yes

all other combinations result in negative outcome (less than 60)

6 0

3 years ago

What topic should not be discussed in a salon (Cosmetology) ​

What topic should not be discussed in a salon (Cosmetology)