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Question - Kara Ries, Tammy Bax and Joe Thomas invested $80,000, $112,000 and $128,000 respectively in a partnership. During its first calendar year, the firm earned $249,000. Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $249,000 net income to the partners under each of the following separate assumptions: The partners:
1. Have no agreement on the method of sharing income and loss.
2. Agreed to share income and loss in the ratio of their beginning capital Investments.
3. Agreed to share income and loss by providing annual salary allowances of 566,000 to Ries, $56,000 to Bax, and $80,000 to Thomas: granting 10% interest on the partners' beginning capital investments and sharing the remainder equally.
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: - Explain the goals and uses of special journals.
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CAPM and Venture Capital
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