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klio [65]
2 years ago
10

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.
Business
1 answer:
Georgia [21]2 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:

Example of not a natural experiment an economist might use to evaluate a theory is:

C. Here the Students in a microeconomics principles course are advised to play a game with their classmates to determine and evaluate what all decisions they make under certain adjusted circumstances.

Explanation:

Natural experiment : A natural experiment is referred to an observational and also an empirical study in which we get to study about the experimental and controllable varieties of variables. which can not het manipulated anywhere by the researchers.

Instead these experiments are allowed to affect the environment and the nature or the different factors which are not under control of our researchers. In contrast to the experimental values and all the natural experiments are even not controlled by the researchers but instead they also admire and obseve those experiments for their own studies.

So, the right option is:

C. Here the Students in a microeconomics principles course are advised to play a game with their classmates to determine and evaluate what all decisions they make under certain adjusted circumstances.

7 0
3 years ago
Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes
NemiM [27]

Based on the amount it would cost to build the machine and the interest rate as well as the payoff, the following are true:

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a. The machine will take a year to build which means the payoff will only start coming in next year.

First find the present value of the perpetuity:

= 70 / 5%

= $1,400

You then need to find the present value of the above in the current period:

= 1,400 / ( 1 + 5%)

= $1,333

NPV is:

= 1,333 - 1,000 cost

= $333

B. If the amount produced increases by 1%, you should use the Gordon Growth Model:

<em>= Next payoff / ( Interest - Growth)</em>

=70/ ( 5% - 1%)

= $1,750

Take this to current year:

= 1,750 / 1.05

= $1,667

NPV will be:

= 1,667 - 1,000

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Find out more about NPV at brainly.com/question/7254007.

3 0
2 years ago
Accounting profit differs from economic profit because:
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Answer:

The correct option is D,economic costs are generally higher than accounting costs because economic costs include all opportunity costs, while accounting costs include explicit costs only.

Explanation:

Economic costs are usually higher because economic costs comprises of both implicit and explicit costs whereas accounting profit calculation only consider the explicit costs.

Explicit costs are the costs that require actual cash flows from the business such as the payment of rent,salaries and many more.

However,implicit costs are not real costs in actual term,they are costs of forgone benefits such as the salaries the business owner if he takes employment elsewhere.

6 0
2 years ago
Read 2 more answers
Consider two companies in a world with no taxes that are alike except in borrowing choices. Company 1 has no debt​ financing, an
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Answer:

Company 1 = $2 per share

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Explanation:

Given that,

EBIT for both companies = $1,000

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Number of shares outstanding for company 2 = 300

Interest paid by company 2 = $250

EPS for company 1:

= (Total income - Preferred dividend) ÷ Shares outstanding

= ($1,000 - $0) ÷ 500

= $2 per share

EPS for company 2:

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The rental income generated by a lease can depend significantly on the proportion of property-level operating expenses paid by t
yanalaym [24]

Answer:

4) Triple net lease

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The landlord's disadvantage with a NNN lease is that the monthly lease payment tends to be lower since the tenant assumes all the costs related to the leased property. On the other hand, a NNN lease generally provides a stable cash flow, so its associated risk is lower.

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