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3 years ago

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Michelle Hamilton and Bill Rossi decide to form a partnership. Hamilton invests $35,000 cash and accounts receivable of $30,000

less allowance for doubtful accounts of $2,000. Rossi contributes $25,000 cash and equipment having a $6,000 book value. It is agreed that the allowance account should be $3,000 and the fair value of the equipment is $10,000. Prepare the necessary journal entry to record the formation of the partnership.

1 answer:

Georgia [21]3 years ago

5 0

Answer:

Dr Cash $60,000

Dr Accounts Receivable$30,000

Dr Equipment $10,000

Cr Allowance for Doubtful Accounts $3,000

Cr Hamiltion, Capital $62,000

Cr Rossi, Capital $35,000

Explanation:

Preparation to record the necessary journal entry to record the formation of the partnership.

Dr Cash $60,000

($35,000 + $25,000)

Dr Accounts Receivable$30,000

Dr Equipment $10,000

Cr Allowance for Doubtful Accounts $3,000

Cr Hamiltion, Capital $62,000

($35,000 + $30,000 – $3,000)

Cr Rossi, Capital $35,000

($25,000 + $10,000)

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Answer:

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3 years ago

Quip Corporation wants to purchase a new machine for $300,000. Management predicts that the machine will produce sales of $200,0

butalik [34]

Answer:

net present value NPV = $79800

so correct option is D) $79,800

Explanation:

solution

we knw that Net Present value = PV of cash inflow - PV of cash outflow ............1

so here PV of cash outflow = $300000

and Net sales = $200000

expenses = $80000

Depreciation = $\frac{300000-50000}{5}$

Depreciation = $50000

so Net income before taxes = Net sales - Depreciation - expenses

Net income before taxes = $200000 - $80000 - $50000

Net income before taxes = $70000

and Tax expenses @ 40% = $28000

so

Net income = Net income before taxes - Tax expenses

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Depreciation = $50000

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Net cash inflow = $42000 + $50000

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and

PVIFA @ 10% 5 years = $3.7908

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PV of cash inflow = $348755

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4 years ago

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Answer:

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Explanation:

Please find detailed calculations as below:

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