Reference no: EM132715036
Question: Two people are starting a small IT firm. They come to you for advice on how to form a partnership. They have listed 2 scenarios and are asking you how to make journal entries for each one of the following transactions:
1. Two partners, A and B, start a partnership.
Partner A's investment is the following:
Cash: $20,000
Inventory: $30,000
Accounts payable: $50,000
Computer equipment: $40,000
Accumulated depreciation: $20,000
Partner B's investment is the following:
Cash: $10,000
Computer software: $20,000
2. Two partners, Small and Big, form a partnership in which Small invested $40,000 and Big invested $60,000 for a total capital of $100,000. But Small devotes more time to the business and earns more from the firm. They have agreed to share the profits as follows:
The first $20,000 is allocated on the partner's capital balances.
The next $30,000 is allocated based on service: Small gets $20,000, and Big gets $10,000.
Any remaining profits are allocated equally.
The partnership's net income is $100,000.
What is Small's portion of the net income? What is Big's portion of the net income? Make the entry for this allocation
What are the implications for nurturing innovation
: Do you agree? Why or why not? Explain with examples. What are the implications for nurturing innovation?
|
Complete reflection activity
: This discussion topic is to be reflective and will be using your own words and not a compilation of direct citations from other papers or sources.
|
What are the equivalent units of production or conversion
: Transferred 9, 000 units, What are the equivalent units of production (conversion) for the month of May, 2011 under average method?
|
What factors may be preventing them from being added
: It appears that countries like China, India, and Brazil are not in the program. What factors may be preventing them from being added?
|
What is small portion of the net income
: Two partners, Small and Big, form a partnership in which Small invested $40,000 and Big invested $60,000 for a total capital of $100,000. But Small devotes.
|
Big data and blockchain technology
: There are several emerging concepts that are using Big Data and Blockchain Technology.
|
Describe five steps of coaching
: Describe these five steps of coaching: Forging a Partnership, Inspiring Commitment: Conducting a GAP Analysis, Growing Skills: Creating Development and Coaching
|
Find what equivalent units of production for month of april
: Materials are added at 55% stage of completion in the Mixing Department. What are the equivalent units of production for the month of April under FIFO method?
|
Effective follower impact your career or life
: How do the lessons of an effective follower impact your career or life?
|