Reference no: EM13905313
In 2006, Sally opened a restaurant called Traders' Place in rented premises in Ottawa's booming financial district. She operated the restaurant as a sole proprietorship. By 2012, the business had grown and she determined that she needed experienced help to run the business. In November 2012, Sally approached Marty to see if he would become the manager of the Traders' Place business. He agreed and the following were the terms of his agreement with Sally.
Each month, Marty was paid $1000 plus 1 percent of the total restaurant revenues for that month. Total monthly revenues, on average, were about $100 000. At the end of each complete calendar year that Marty worked, if the restaurant had made a profit for the year equal to or exceeding $200 000, Marty was entitled to receive 10 percent of the profits.
Marty was responsible for managing the restaurant, including opening and closing the restaurant, hiring, firing and scheduling staff, and ordering food and paying suppliers.
Sally was responsible for the financial side of the business, including budgeting, accounting and payroll, as well as marketing. In 2013, Traders' Place profits exceeded $200 000 and Marty was paid 10 percent of the profits in accordance with the agreement.
Are Marty and Sally carrying on business as a partnership?
|
The company makes all purchases on credit
: Use the data for Valley Company in Problem 5-4 to complete the following requirements.
|
|
Costs incurred in drilling for oil are classified as
: Financial accounting and reporting for oil and gas producing companies has been debated for many years in the United States by the accounting profession, regulatory agencies, industry groups, and the companies themselves. The principal focus in recen..
|
|
Effect on the dashboard of the van
: Joseph, a businessman employed John as a driver of his van. Joseph had expressly forbidden John from giving a lift to any unauthorized person and affixed a notice to this effect on the dashboard of the van.
|
|
Amount wrongly debited against
: The bank refused to credit his account for the amount wrongly debited against him on the ground that the forged signature appeared quite genuine. Is the bank liable? Advise Njoroge.
|
|
Responsible for managing the restaurant
: Marty was responsible for managing the restaurant, including opening and closing the restaurant, hiring, firing and scheduling staff, and ordering food and paying suppliers.
|
|
Perform a functional dependency analysis
: Perform a functional dependency analysis, and include it as part of your deliverables, for every step of the normalization process - Redesign the spreadsheet into a database with tables, add any fields that you think could be useful, even though it..
|
|
Community of property with inclusion of accrual system
: Xander and Wanda were married out of community of property with inclusion of the accrual system. They had three sons, Ben, Charl and David.
|
|
Which applies the perpetual inventory system
: Prepare journal entries to record the following merchandising transactions of Yarvelle Company, which applies the perpetual inventory system.
|
|
Selecting a specific discipline as a career
: Recall an important decision (for example, selecting a specific discipline as a career) that you took and describe the same in terms of the steps you followed and the factors that affected it.
|