Reference no: EM131220264
Hanna Hark and Jamie Rice are watch repairmen who want to form a partnership and open a jewelry store. An attorney prepares their partnership agreement, which indicates that assets invested in the partnership will be recorded at their fair market value and that liabilities will be assumed at book value. The assets contributed by each partner and the liabilities assumed by the partnership follow: Assets Hanna Hark Jamie Rice Total Cash $ 80,000 $ 60,000 $ 140,000 Accounts receivable 104,000 40,000 144,000 Allowance for uncollectible accounts 8,000 6,000 14,000 Supplies 2,000 1,000 3,000 Equipment 40,000 20,000 60,000 Liabilities Accounts payable 64,000 18,000 82,000.
Prepare the journal entry necessary to record the original investment of Hark in the partnership. For a compound transaction, if an amount box does not require an entry, leave it blank.
Prepare the journal entry necessary to record the original investment of Rice in the partnership. For a compound transaction, if an amount box does not require an entry, leave it blank.
|
What could tawana do to reduce her family tax burden
: Tawana owns and operates a sole proprietorship and has a 40 percent marginal tax rate. She provides her son, Jonathon, $8,000 a year for college expenses. Jonathon works as a pizza delivery person every fall, and has a marginal tax rate of 15 percent..
|
|
Prepare a report of business organization and policy
: Prepare a report of Business Organization and Policy on a detailed analysis of the acquisitions of British Home Stores (BHS)
|
|
Realize by accepting the special order
: At Bargain Electronics, it costs $31 per unit ($18 variable and $13 fixed) to make an MP3 player at full capacity that normally sells for $46. A foreign wholesaler offers to buy 4,010 units at $29 each. Bargain Electronics will incur special shipping..
|
|
Cost volume profit analysis can plan many different roles
: Cost Volume Profit Analysis can plan many different roles in the overall management decision making process. Describe cost volume profit analysis and how management can use it in more than just financial analysis. Explain the main differences between..
|
|
Journal entry necessary to record the original investment
: Hanna Hark and Jamie Rice are watch repairmen who want to form a partnership and open a jewelry store. An attorney prepares their partnership agreement, which indicates that assets invested in the partnership will be recorded at their fair market val..
|
|
Prepare the service revenue budget
: Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2017). The practice is divided into three departments: auditing, tax, and consulting. Prepare the service revenue (sales) budget for 2017 by listing the de..
|
|
When considering accounting information systems
: When considering accounting information systems, which of the following is false?
|
|
Compute the total net liability to be reported
: The following are selected 2014 transactions of Sean Astin Corporation: Purchased inventory from Encino Company on account for $59,150. Astin records purchases gross and uses a periodic inventory system. Compute the total net liability to be reported..
|
|
Interest and penalities on the delinquent taxes
: On July 1, 2017, the beginning of its fiscal year, Ridgedale County recorded gross property tax levies of $3,200,000. The county estimated that 5% of the taxes levied would be uncollectible. At the end of the fiscal year the county had collected $48,..
|