User Account

All Pages

How much is the net increase in rr capital account

Assignment Help Accounting Basics
Reference no: EM132825282

JJ and RR are partners engaged in a manufacturing business. They have a beginning capital on January 1 of 50,000 and 70,000, respectively. JJ invests 60,000 on April 1 and withdrew 30,000 on September 1. RR invests 60,000 on September 1 and withdrew 20,000 on April 1. The income summary has a debit balance of 50,000 for the first year 2020.

Agreement between JJ and RR are as follows:

I. Interest on average capital balance at 8%
II. Bonus to JJ at 25% of net income
III. Salaries of 25,000 and 35,000 are given to JJ and RR, respectively
IV. Balance is to be divided equally

Problem 1. How much is the net increase/(decrease) in JJ's capital account during 2020?

Problem 2. How much is the net increase/(decrease) in RR's capital account during 2020?

Reference no: EM132825282

Questions Cloud

Calculate appropriate amount to include in npv calculation : Calculate the appropriate amount to include in an NPV calculation for 2025. (Not the present value, but the amount that would be present valued.)
Why is the Brexit vote significant both within the UK : Why is the Brexit vote significant both within the UK and globally? What are the key challenges facing leadership in the UK in light of the Brexit vote
Traditional methods of data collection in transit system : What were the traditional methods of data collection in the transit system?
What is the breakeven point in number of car seats : The variable cost of each car seat is $46 and monthly fixed selling costs total $7,000. What is the breakeven point in number of car seats
How much is the net increase in rr capital account : JJ and RR are partners engaged in a manufacturing business. How much is the net increase/(decrease) in RR's capital account during 2020?
Satellite communication : Some businesses have no alternative but to use satellite communication solutions.
What is the amount of equity : The FastForward Company balance sheet shows cash $5,000, accounts receivable $7,000, office equipment $3,000, What is the amount of equity
Find exploration and evaluation expenditures are incurred : Find Exploration and evaluation expenditures are incurred. When is an entity required to recognize exploration and evaluation expenditure as an asset?
Explain the purpose of change management : Explain the purpose of change management and how it applies to infrastructure protection.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd