Reference no: EM132766268
Question - Carrots joins the partnership of Apple and Banana. Before the admission of Carrots, the partnership statement of financial position shows the following information:
Cash 30,000
Accounts receivable 140,000
Inventory 200,000
Equipment 500,000
Total assets 870,000
Accounts payable 80,000
Apple, Capital (60%) 515,000
Banana, Capital (40%) 275,000
Total liabilities and equity 870,000
The following adjustments are determined:
a. The recoverable amount of the accounts receivable is 120,000.
b. The inventory has a net realizable value of 160,000.
c. The equipment has a fair value of 450,000.
d. Unrecorded liabilities amount to 20,000.
Carrots invests 165,000 cash to the partnership in exchange for a 20% interest. Carrots' capital account is credited for the fair value of the 20% interest he acquired.
Requirements -
a. Provide the journal entry to record the admission of Carrots.
b. Compute for the capital balances of the partners following the admission of Carrots.
c. Determine the profit or loss sharing ratio of the partners after the admission of Carrots.
If Carrots is to invest sufficient cash to obtain 2/5 interest in the partnership, how much should Carrots contribute to the new partnership?
|
How would you describe the ideal male and female
: Do you see any family patterns such as medical issues, communication problems, divorces, teenage births? At this time, how would you describe the ideal male.
|
|
Research intranet and internet
: Research intranet and internet. Discuss the differences between intranets and the internet in terms of purpose, architecture, topology, and protocol.
|
|
What will be the effect on short-term profits
: Fixed overhead is not avoidable. If Olive Corp rejects the outside offer, what will be the effect on short-term profits
|
|
Determine the vision and mission of the company
: Determine the vision and mission of the company. Make sure you emphasize the general description of the organization, its core, and non-core business values.
|
|
Compute for the capital balances of the partners
: The recoverable amount of the accounts receivable is 120,000. Compute for the capital balances of the partners following the admission of Carrots
|
|
Discuss about communication and medical documentation
: Learning a culture and error reporting is very important for an organization success. It is very important for employees to know their work.
|
|
Determine the sales dollars that must be generated
: The average fixed expense per month is $12,000. Determine the sales dollars that must be generated to attain target profits of $40,000 per month
|
|
Calculate the present value of the liability
: Calculate the present value of the liability and equity components of the convertible notes
|
|
Explain the principles of the seven cs of communication
: For this written assignment, assume that you are a new office manager and have an employee who has not been performing to your expectations.
|