Reference no: EM131005432
Question:
Ken Lott and Jim Rosen operate separate auto repair shops. On January 1, 2005, they decide to combine their separate businesses which were operated as proprietorships to form L & R Auto Repair, a partnership. Information from their separate balance sheets is presented below:
Lott Auto Repair Rosen
Cash $10,000 $12,000
Accounts receivable 9,000 7,000
Allowance for doubtful accounts (1,000) (500)
Accounts payable 5,000 6,000
Salaries payable 1,000 1,500
Equipment 12,000 24,000
Accumulated amortization-Equipment (2,000) (4,000)
It is agreed that the expected realizable value of Lott''s accounts receivable is $8,000 and Rosen''s receivables is $5,000. The fair market value of Lott''s equipment is $15,000 and the value of Rosen''s equipment is $20,000. It is further agreed that the new partnership will assume all liabilities of the proprietorships.
Instructions
Prepare the journal entries necessary to record the formation of the partnership.
|
How much of the 235u fuel is consumed
: Reactors for naval vessels are designed to have very long lifetimes without the need to refuel. Discuss possible techniques that can be used to maintain criticality over the core lifetime as 235U is consumed.
|
|
Compute the number of sticks of gum to include in each pack
: Coach Industries Inc. is a leading manufacturer of recreational vehicle products. Its products include travel trailers, fifth – wheel trailers (towed behind pick – up trucks), and van campers as well as parts and accessories. The inverse demand funct..
|
|
The residual value after four years
: The residual value after four years, guaranteed by the lessee, is $100,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year.
|
|
Why the boiling in the cooling tubes led to supercriticality
: The resulting energy excursion resulted in the destruction of the reactor containment and a large amount of the fission products in the fuel elements were released to the environment as the reactor containment ruptured. Explain why the boiling..
|
|
Prepare journal entries necessary to record the formation
: Prepare the journal entries necessary to record the formation of the partnership - It is further agreed that the new partnership will assume all liabilities of the proprietorships.
|
|
Confidence interval for the population mean
: Based on a random sample of 10 values from a normal population with mean μ and standard deviation σ, you calculated that xbar = 10 and the sample standard deviation = 4. Estimate a 95% confidence interval for the population mean. Which probability di..
|
|
Absolute advantage differs from comparative advantage
: What is the mechanism by which the "invisible hand" pushes markets to equilibrium? Explain the two main causes of market failure and give an example of each. What is the difference between a positive and a normative statement? Give an example of each..
|
|
How much thermal power is rejected through the condenser
: A 1000 MW(e) nuclear power plant has a thermal conversion efficiency of 33%. How much thermal power is rejected through the condenser to cooling water?
|
|
The first payment was made at the inception of the lease
: The first payment was made at the inception of the lease. How would OAC classify this lease if it prepares its financial statements using IFRS? Why?
|