Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Problem - Sixty-year-old Wanda Davis retired from her computer consulting business in Boston and moved to Florida. There she met 27-year-old Ava Jain, who had just graduated from Eldon Community College with an associate degree in computer science. Wanda and Ava formed a partnership called D&J Computer Consultants. Wanda contributed $50,000 for startup costs and devoted one-half time to the business. Ava devoted full time to the business. The monthly drawings were $2,500 for Wanda and $5,000 for Ava.
At the end of the first year of operations, the two partners disagreed on the division of net income. Wanda reasoned that the division should be equal. Although she devoted only one-half time to the business, she contributed all of the startup funds. Ava reasoned that the income-sharing ratio should be 2:1 in her favor because she devoted full time to the business and her monthly drawings were twice those of Wanda.
Required -
a. What flaws can you identify in the partners' reasoning regarding the income-sharing ratio?
b. How could an income-sharing agreement resolve this dispute?
Give the entry for the issuance assuming the par value of the common was $5 and the market value $30, and the par value of the preferred was $40 and the market value $50.
Patti Company owns 80% of the common stock of Shannon, Inc. Compute consolidated cost of goods sold
Evaluate tax-planning strategies related to liquidating distributions, acquisitions, and reorganizations.
during the year martin rented his vacation home for three months and spent one month there. gross rental income from
Bramble's internal reports indicated that the FIFO inventory balance was $2,887,700, What is the journal entry needed to record the LIFO effect
The fraud triangle is a three-leg model for explaining the factors that cause someone to commit occupational fraud.
What is the difference between business process outsourcing (BPO) and knowledge process outsourcing (KPO)? Why do many organizations outsource at least some of their accounting functions?
Determine how at the end of the year, BizCon reported a favorable net income, yet the company's management is concerned because the company
Make a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan
Create journal entries for the purchase of the treasury stock and the three sales of treasury stock.
She has prepared a rough draft of the response citing the objective of financial reporting. Identify the objective of financial reporting
Question - A $10,000, 90-day, 12% note payable was issued on November 1, 2019. What is the amount of interest expense recorded in 2020
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd