Andy, Belinda, and Chris formed a partnership on 1/1/2021. Andy contributed $35659 and is entitled to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Andy, Belinda, and Chris formed a partnership on 1/1/2021. Andy contributed $35659 and is entitled to 25% of capital and 40% and losses. Belinda contributed $28664 and is entitled to 30% of capital and 35% of profits and losses. Chris contributed $617 entitled to 45% of capital and 25% of profits and losses. Based on the bonus method, how much capital should Belinda receive at partnership formation? Based on the goodwill method, what will Andy's initial capital position be? Andy, Belinda, and Chris formed a partnership on 1/1/2021. Andy contributed $35659 and is entitled to 25% of capital and 40% and losses. Belinda contributed $28664 and is entitled to 30% of capital and 35% of profits and losses. Chris contributed $617 entitled to 45% of capital and 25% of profits and losses. Based on the bonus method, how much capital should Belinda receive at partnership formation? Based on the goodwill method, what will Andy's initial capital position be?
Expert Answer:
Answer rating: 100% (QA)
Calculation of Belinda capital at the time of partnership formation The following information was gi... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
Andy and Ian formed a partnership on April 1, 2015. Andy contributes equipment, purchased at a price of $85,000 on April 1, 2014, to the business. The accumulated depreciation of the equipment is...
-
Godfrey and Taylor formed a partnership on 1 July 2015 with initial capital balances of $90 000 and $60 000 respectively. For the year ended 30 June 2016, the Profit or Loss Summary account disclosed...
-
Penny and Lane formed a partnership on 1 July 2015 with initial capital balances of $200 000 and $220 000 respectively. For the year ended 30 June 2016, the Profit or Loss Summary account disclosed a...
-
We consider and simulate the supply chain under a wholesale price contract. As mentioned, we use a retail price of $10, a unit production cost of $2.50, and a (monthly) demand that is normally...
-
Benny the Barber owns a one- chair shop. At barber college, they told Benny that his customers would exhibit a Poisson arrival distribution and that he would provide an exponential service...
-
For each case in Problem 4, set 3.4a, write the corresponding Phase I objective function.
-
Identify at least three ways you can obtain information about the location of the debtors assets.
-
The following information concerns production in the Forging Department for June.The Forging Department uses the average cost method. a. Determine the cost per equivalent unit.b. Determine the cost...
-
Research Paper Sections_ Discussing financial risk concepts and assess the impact of the different financial risks on an organization. Structure your paper using four research paper sections...
-
Answer the following question. How many U.S. dollars can you buy for C$750 if one Canadian dollar is worth US$0.8168?
-
In order to rehab her injured back, Sally's doctor ordered her to travel to a special gym in a nearby state with "state-of-the-art" equipment to work out for one week. She spent $600 on a roundtrip...
-
What characterizes un-normalized data? Why is un-normalized data a problem? How do you know when the database is fully normalized? Define a foreign key and describe the use of foreign keys. What data...
-
An annual coupon bond has a coupon rate of 6 percent, 7 years to maturity, a par value of $1000, and a yield to maturity of 9 percent. What is the bond price?
-
What role do application programming interfaces (APIs) play in fostering an open banking ecosystem, and how do they enable seamless data sharing and interoperability between financial institutions...
-
An astronaut who is repairing the outside of her spaceship accidentally pushes away a 98.9 cm long steel rod, which flies off at 10.9 m/s, never to be seen again. As it happens, the rod is oriented...
-
Sew 'N More just paid an annual dividend of $2.84 a share. The firm plans to pay annual dividends of $2.90, $3.00, and $3.06 over the next 3 years, respectively. After that time, the dividends will...
-
The Condon (CBS News) article quotes Senator Robert Menendez as saying, "There are domestic manufacturers, including New Jersey companies, who want to compete to make these uniforms. I am confident...
-
suppose a nickel-contaminated soil 15 cm deep contained 800 mg/kg Ni, Vegetation was planted to remove the nickel by phytoremediation. The above-ground plant parts average 1% Ni on a dry-weight bas...
-
How do land improvements differ from land?
-
Bailey Company expects to sell 1,500 units of finished product in January and 1,750 units in February. The company has 180 units on hand on January 1 and desires to have an ending inventory equal to...
-
The tobacco companies have paid billions because of smoking- related illnesses. In particular, Philip Morris, a leading cigarette manufacturer, paid more than $ 3,000,000,000 in settlement payments...
-
Describe the financial accounting journal entry to record the sale/disposal of a fixed asset.
-
Ski resorts are interested in the mean age that children take their first ski and snowboard lessons. They need this information to plan their ski classes optimally. identify: a. the population, b....
-
Insurance companies are interested in the mean health costs each year of their clients, so that they can determine the costs of health insurance. identify: a. the population, b. the sample, c. the...
Study smarter with the SolutionInn App