Jeff Davis and Trish Smith decided to enter into a business partnership. Jeff Davis contributed a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jeff Davis and Trish Smith decided to enter into a business partnership. Jeff Davis contributed a car worth $20,000 (with a loan outstanding of $5,000 on it) and $10,000 cash. Trish Smith contributed $7,500 of retail inventory and $5,000 of cash. The partners will withdraw salaries of $40.000 (Davis) and $25,000 (Smith), and recognize interest on their invested ("opening") capital of 5%. Any residual profit/loss will be split 80% (Davis)/20% (Smith). Net Income for the year is $100,000. Record the journal entry to recognize each partner's contributions to the business Jeff Davis and Trish Smith decided to enter into a business partnership. Jeff Davis contributed a car worth $20,000 (with a loan outstanding of $5,000 on it) and $10,000 cash. Trish Smith contributed $7,500 of retail inventory and $5,000 of cash. The partners will withdraw salaries of $40.000 (Davis) and $25,000 (Smith), and recognize interest on their invested ("opening") capital of 5%. Any residual profit/loss will be split 80% (Davis)/20% (Smith). Net Income for the year is $100,000. Record the journal entry to recognize each partner's contributions to the business
Expert Answer:
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
Posted Date:
Students also viewed these accounting questions
-
A pension fund wants to enter into a six-month equity swap with a notional amount of $60 million. Payments will occur in 90 and 180 days. The swap will allow the fund to receive the return on a stock...
-
A companys net income for the year was $17,000. During the year, the company paid dividends on its non-cumulative preferred shares amounting to $12,000. Calculate the amount of the years net income...
-
The Doyle Trust reports distributable net income for the year of $100,000 and no income from tax-exempt sources. Under the terms of the trust instrument, the trustee must distribute $20,000 to Roger...
-
A table of properties for methyl chloride lists the saturation pressure as 116.7 psia at 100oF. At 100oF, this table also lists hfg = 154.85 Btu/lbm, and vfg = 0.86332 ft3/lbm. Estimate the...
-
Industry conditions can be a source of business risks for an entity. Describe how each of the following industry conditions can result in business risks. a. The entitys market characteristics (e. g.,...
-
How would data mining algorithms deal with qualitative data like unstructured texts from interviews?
-
Write a subroutine wILSON for implementing the Wilson method. Use this program to find the solution of Example 11.7. Data From Example 11.7:- Data From Example 11.3:- Find the response of the system...
-
Preparing a Classified Balance Sheet Campbell Soup Company is the world's leading maker and marketer of soup and sells other well-known brands of food in 120 countries. Presented here are the items...
-
Describe how you believe trauma-informed leadership will develop in three to five paragraphs. Do you think companies in all sectors are obligated to treat workplace trauma? Should employers be held...
-
At December 31, 2011, the records of Duo Corporation provided the following selected and incomplete data: Common stock (par $1; no changes during the year). Shares authorized, 5,000,000. Shares...
-
A Georgia Pacific paper mill daily inspects and tracks the number of defects found in each sample of paper. What is the appropriate type of control chart to monitor this quality characteristic? O...
-
1 ) Night Shades, Inc. manufactures biotech sunglasses. The variable materials cost is $ 1 1 . 1 3 per unit, and the variable labor cost is $ 7 . 2 9 per unit. A ) What is the variable cost per unit?...
-
1 . Prepare a PowerPoint sales presentation that addresses the following: a . Give five main reasons for implementing business analytics in a client's business operations. b . Select three...
-
watched youtube videos and work on authentic leadership and servant leadership. https://youtu.be/ywX3V69EbA8 https://youtu.be/zrxHxGwVEMo Authentic Leadership Servant Leadership
-
The community of Ambler received a Power Cost Equalization subsidy of $0.50 per kilowatt hour for residential electricity consumption in 2018. If the community consumed 469 megawatts of electricity...
-
Create a test() function that takes an array as input and returns the minimum value, maximum value, mean, median, mode, standard deviation, variance, Quartile1, Quartile3, and Quartile deviation of...
-
( ( i ) ) State and explain the various HTML elements in detail.? ( ( ii ) ) Explain the way in which data can be presented in tabular form using HTML?
-
Write out the formula for the total costs of carrying and ordering inventory, and then use the formula to derive the EOQ model. Andria Mullins, financial manager of Webster Electronics, has been...
-
Explain the treatment of sales returns and allowances and purchases returns and allowances in special journals, under both the periodic and perpetual inventory systems. How would these items be...
-
Kellys Cleaning Services T accounts for 30 April 2017 were as follows: Cash at Bank Cleaning Equipment 2/4 80000 5/4 17 000 5/4 17000 9/4 8 000 10/4 12 000 Loan Payable 10/4 48 000 Vehicle 10/4 60000...
-
The expected costs and operating data for two manufacturers are presented below: Aloe Ltd Basil Ltd Units produced Factory overhead costs Direct labour hours Direct labour cost 104 000 $499 200 151...
-
Research and explain a humanitarian initiative and cite the organizations involved, the logistics of the situation, and whether they were successful or not.
-
Review the methods used in the supplements, and then find a disruption or disaster situation that used one of these methods to model, understand, and evaluate alternative mitigation actions.
-
Research how a first responder or team of first responders handled a disruption or disaster. What skills did they need? What was the service window? Were they successful or not?
Study smarter with the SolutionInn App