What alternatives are available to Wilkinson and Walker to deal with this situation, and what are the advantages and disadvantages of each?
Q: decision maker. What amount should Taylor report as segment profit?
A: Answer - P406,000 should be reported as segment profit for Taylor.
Q: ability fund is a form of 529 plan that is designed to help
A: Able Account: It is possible to make contributions to an Achieving a Better Life Experience (ABLE)…
Q: Explain the purpose of the statement of cash flows
A: Cash Flow Statement - Cash Flow Statement shows the movement of cash during the financial year. This…
Q: ABC and XYZ formed a partnership on January 1, 2022, and agreed to share net income and losses 90…
A: Partnership means the agreement between the two or more person to do the business together and share…
Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…
A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…
Q: 2. Computer for the Net Present Value using the present value of an annuity. Get the value using…
A: Net present value is the present value of future estimated cashflows discounted at interest rate.
Q: Smythe Co. makes furniture. The following data are taken from its production plans for the year.…
A: Answer:-1 Hazard waste disposal costs $615,000…
Q: Stockholders' Equity Prepare the Paid-In Capital portion of the stockholders' equity section of the…
A: Paid in capital section of stockholders equity does not include retained earnings
Q: 2021 APRIL 1 2 5 6 11 13 14 15 16 17 18 20 23 26 27 28 29 30 30 30 The business, JHARA DISTRIBUTORS,…
A: Trial Balance - After transferring all the transactions into Ledgers Company closes the accounts and…
Q: What is the accounting break even quantity?
A: Given in the question: Selling Price Per unit = $515 per unit Variable Cost Per Unit = $420 per unit…
Q: 3 hours in the same week. You are required to prepare all the labor variances and answer the…
A: Given Information: Standard Skilled Worker :20 Semi -Skilled :15 Unskilled :10 Standard…
Q: Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: why is there a need to re evaluate impairment of assets due to trigger events?
A: The impairment refers to the decrease in the value of assets of the company. This reduction is…
Q: Acme is considering the sale of a machine with a book value of $80,000 and 3 years remaining in its…
A: Given :- The market value of the machine = $100,000 Book Value = $80,000 Gain on sale = Market…
Q: As a specialist in the accounting of intangible assets, explain if the costs identified can be…
A: Company discovered that product manufacturing is illegal So, company shut down and proceeded with…
Q: PT X has nominal preference shares of Rp. 1 billion, 6%. PT X's profit during the year was Rp. 200…
A: Dividend to Preferred shareholders: Preferred shareholders are given preference when dividend is…
Q: determine the amount of itemized deduction for medical expenses Taxpayer may deduct after all…
A: The health insurance premium means the amount paid to the insurance companies for the insurance. The…
Q: Denison Corporation is authorized to issue 10,000, no par value $10 convertible preferred shares and…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Arrow Manufacturing Co. expects to make 50,000 chairs during the year 1 accounting period. The…
A: Introduction: Manufacturing costs include all resources utilized in the creation of the product.…
Q: Which of the following documents associated with the purchases and cash disbursements cycle is most…
A: Answer:- Journal entry meaning:- A journal entry is the act of recording or keeping track of any…
Q: 9. Kohler Kleaners borrowed $50,000 on June 1, 2022, to finance the purchase of a building. The…
A: Principle amount of loan is $ 50000. Emi = $525 Interest rate = 8℅ Month opening balance of loan…
Q: Please answer and show all steps: A construction company is engaged in a three-year renovation…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: The declaration, record, and payment dates in connection with a cash dividend of $108,000 on a…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Question 4 Jason works Monday to Friday, from 10:00 AM to 6:00 PM, at $18.54/hour, including 30 min…
A: Hi student Since there are multiple questions, we will answer only first question. Pay of the…
Q: Why are adjusting entries needed? What would the effect be of not preparing and posting adjusting…
A: Journal- A journal keeps track of all of an organization's business transactions. A company may…
Q: Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake…
A: Treasury Stock: Treasury stocks, which are often referred to as treasury shares, are the part of a…
Q: What is SBA Loans
A: Loans- Business loans, also known as commercial loans, are a type of finance used to fund business…
Q: both girls, and both girls live at the Princes residence. Which of the following statements is true…
A: Hemlet and Ophelia have one daughter and one taken friend of their daughter Jane, to check whether…
Q: Find out the company's cash ratio which has cash of P7500, cash equivalents of P26,250, accounts…
A: Cash ratio is an liquidity ratio, where it can be found out by adding cash available with…
Q: Question 2 If an associate has preference share, the proper way of computing the share in net…
A: Correct option is (A) : Deduct the preference dividend for the current year only, whether declared…
Q: Beginning inventory, purchases, and sales data for tennis rackets are as follows: April 3 Inventory…
A: LIFO means last in first out. As per this method, the inventory bought at last should be sold first.
Q: 12. Revenue from operations $960.000; Gross Profit Ratio 25%; Opening inventory $100.000, Closing…
A: Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory Average inventory= (Opening…
Q: Problem 8-6 (Reconstruction of Shown below and on the next page are account balances found in the…
A: One of the source used by the business organizations to raise the capital are issue of shares i.e.…
Q: The Bomb Pop Corporation sold ice cream equipment for $18,500. The equipment was originally…
A: Given, Purchase cost = $40,000, Accumulated depreciation = $25,000, Sale price = $18,500
Q: Why would a company hire internal auditors if they already have an external auditor?
A: Internal audit is basically the internal department of the organisation which performs checks to…
Q: Mr. and Mrs. Grnager are both full-time employees. Their three children are 16, 6, and 3 years old.…
A: Here the details of qualified expenses which can be used for claiming the child and depend care…
Q: Cadbury Limited has a public traded debt (debentures) with a face value of R3 million. The coupon…
A: Computation of present value of debenture after 7 years Years Particulars Cash flow PvAF/Pvf @11%…
Q: What are the risks associated with auditing accounts payable? Can you explain the process of…
A: Introduction: Accounts payable (AP) is a general ledger account that represents a company's…
Q: Prepare the correct worksheet (Excel) and the Balance Sheet of the Drilon's Delivery Services. ring…
A: Worksheet means the statement in which all account having debit or credit balance are shown up. In…
Q: Taxpayer and Spouse divorced in 2017. Under the terms of the decree, laxpayer pays Sp remarriage).…
A: Here discuss about the details of the amount which are included in the gross income of spouse after…
Q: Various negotiation tactics can be employed by negotiators in order to attempt to reach a…
A: Answer:- Negotiation meaning:- A negotiation is a strategic debate that aims to resolve an issue…
Q: on October 1. GHI made a withdrawal of P30,000 on November 1. Compute for the share of income of DEF…
A: Average capital balance of the partners during the year is taken and computed as the capital balance…
Q: Privett Company Accounts payable Accounts receivable Accrued liabilities Cash Intangible assets Inve…
A: Introduction: Total Assets value: Sum of all the assets value derives the Total Assets value. All…
Q: X, Y and Z were partners sharing profits in the proportion of 3:2:1. Y Retires from the business.…
A: Journal Entries: Particulars Dr. Cr. 1. Revaluation A/c Dr 18300…
Q: 2. Practical bases questions (Basic Accounting Equation) The following information was obtained from…
A: Owner introduced capital from taking a personal loan it's not business loan. And repayment of such…
Q: Situations The PA audits financial statements and the PA's name is in the corporate annual report…
A: Auditing: It is the check of the financial statements, related documents and operations on the basis…
Q: The executor of Rose Shield's estate listed the following properties (at fair value): Cash $ 300,000…
A: Introduction: A journal entry is a record of a business arrangement in the accounting system of a…
Q: q27 The classification and therefore subsequent measurement of financial assets depends on…?…
A: Financial assets are one of the form of liquid assets. It includes cash, stocks, shares, mutual…
Q: Briefly describe this income statement in one sentence.
A: Introduction:- Income statement shows company's income and expenses over a period of time. Formula…
Q: Matie's Playground Equipment has current assets of $125,400 and current liabilities of $74,950. Find…
A: Current ratio is one of the liquidity ratio being used for analysis. This shows how much current…
What alternatives are available to Wilkinson and Walker to deal with this situation, and what are the advantages and disadvantages of each?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2022, O’Donnell invests a building worth $54,000 and equipment valued at $20,000 as well as $16,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O’Donnell to join this partnership, Reese draws up the following profit and loss agreement: O’Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year. O’Donnell will also have added to his capital account 10 percent of partnership income each year (without regard for the preceding interest figure) or $5,000, whichever is larger. All remaining income is credited to Reese. Neither partner is allowed to withdraw funds from the partnership during 2022.…KATY, a sole proprietor wanted to expand her profitable business but she does not have enough resources. So, she thought of inviting PERRY to join her and formed a partnership on April 1, 2020. Just before admission, KATY had the following assets and liability accounts: Cash - ₱420,000; Accounts receivable -₱380,000; Inventories -₱250,000;Notes payable -₱100,000. PERRY agreed to contribute cash equal to 30% of KATY’s capital after considering the following adjustments: (a) 2% allowance for bad debts should be recognized, (b) the inventories have fair market value equal to 120% of the balance. How much should Perry contribute to the partnership?KATY, a sole proprietor wanted to expand her profitable business but she does not have enough resources. So, she thought of inviting PERRY to join her and formed a partnership on April 1, 2020. Just before admission, KATY had the following assets and liability accounts: Cash - ₱420,000; Accounts receivable -₱380,000; Inventories -₱250,000; Notes payable -₱100,000. PERRY agreed to contribute cash equal to 30% of KATY’s capital after considering the following adjustments: (a) 2% allowance for bad debts should be recognized, (b) the inventories have fair market value equal to 120% of the balance. How much is the total assets of the partnership after the formation? *
- Ahmed for Mujeeb Leasing for several years. Muscat Leasing is a company that leases high-tech medical equipment to hospitals. Ahmed for Mujeeb have decided that, with their financial expertise, they might start their own company to provide consulting services to individuals interested in leasing equipment. One form of organization they are considering is a partnership. If they start a partnership, each individual plan to contribute OMR50,000 in cash. In addition, Ahmed has a used computer that originally cost OMR370, which he intends to invest in the partnership. The computer has a present market value of OMR150.Although both Ahmed for Mujeeb are financial wizards, they do not know a great deal about how a partnership operates. As a result, they have come to you for advice. What type of document is needed for a partnership, and what should this document contain?Mr. Ahmed, the general partner of a big furniture store in Muscat is going to contribute a bigger share of money to settle the partnership's liabilities to its creditors. Why Ahmed is going to do so? None of the choices are correct General partners will contribute more because they have more money General partners have unlimited liability General partners have a distinct legal personalityIn the early part of 2018, the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had begun a new business in 2017 but had never used an accountant’s services. Hugh and Jacobs began the partnership by contributing $150,000 and $100,000 in cash, respectively. Hugh was to work occasionally at the business, and Jacobs was to be employed full-time. They decided that year-end profits and losses should be assigned as follows: Each partner was to be allocated 10 percent interest computed on the beginning capital balances for the period. A compensation allowance of $5,000 was to go to Hugh with a $25,000 amount assigned to Jacobs. Any remaining income would be split on a 4:6 basis to Hugh and Jacobs, respectively. In 2017, revenues totaled $175,000, and expenses were $146,000 (not including the partners’ compensation allowance). Hugh withdrew cash of $9,000 during the year, and Jacobs took out $14,000. In addition, the business paid $7,500 for repairs…
- Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2016, O’Donnell invests a building worth $52,000 and equipment valued at $16,000 as well as $12,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O’Donnell to join this partnership, Reese draws up the following profit and loss agreement: O’Donnell will be credited annually with interest equal to 20 percent of the beginning capital balance for the year. O’Donnell will also have added to his capital account 15 percent of partnership income each year (without regard for the preceding interest figure) or $4,000, whichever is larger. All remaining income is credited to Reese. The partnership reported a net loss of $10,000 during the first year of its…On January 1, 2020, the dental partnership of Angela, Diaz, and Krause was formed when the partners contributed $44,000, $75,000, and $74,000, respectively. Over the next three years, the business reported net income and (loss) as follows: 2020 $ 84,000 2021 56,000 2022 (39,000 ) During this period, each partner withdrew cash of $16,000 per year. Krause invested an additional $6,000 in cash on February 9, 2021. At the time that the partnership was created, the three partners agreed to allocate all profits and losses according to a specified plan written as follows: Each partner is entitled to interest computed at the rate of 10 percent per year based on the individual capital balances at the beginning of that year. Because of prior work experience, Angela is entitled to an annual salary allowance of $12,500 per year, and Diaz is entitled to an annual salary allowance of $10,400 per year. Any remaining profit will be split as follows: Angela, 20…Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2019, O’Donnell invests a building worth $74,000 and equipment valued at $44,000 as well as $32,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O’Donnell to join this partnership, Reese draws up the following profit and loss agreement: O’Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year.O’Donnell will also have added to his capital account 10 percent of partnership income each year (without regard for the preceding interest figure) or $6,000, whichever is larger. All remaining income is credited to Reese.Neither partner is allowed to withdraw funds from the partnership during 2019.…
- Jim Bond, a plumber, has been working for Fleming’s Plumbing Supplies for several years. Based on his hard work and the fact that he recently married Ivan Fleming’s daughter, Jim has been invited to enter into a partnership with Fleming. The new partnership will be called Fleming and Bond’s Plumbing Supplies. The terms of the partnership are as follows: (a) Fleming will invest the assets of Fleming’s Plumbing Supplies, and thepartnership will assume all liabilities. The market values of the office and store equipment are estimated to be $18,000 and $8,000, respectively. All other values reported on the balance sheet (shown below) are reasonable approximations of market values. Fleming has no knowledge of any uncollectible accounts receivable.(b) Bond will invest $50,000 cash.(c) Fleming will draw a salary allowance of $50,000 per year, and Bond willreceive $30,000.(d) Each partner will receive 10% interest on the January 1 balance of his capital account.(e) Profits or losses remaining…In the early part of 2020, the partners of Manuel, Benjamin, and Solomn went to local accountant seeking assistance. They had begun a new business in 209 but had never previously used the services of accountant. Manuel and Benjamin began the partnership by contributing P 80,000 and P30,000 in cash, respectively. Manuel was to work occasionally at the business whereas Benjamin would be employed full time. They decided that year-end profits and losses should be assigned as follows: - Each partner was to be allocated 10 percent interest computed on the beginning capital balance for the period. - A compensation allowance of P5,000 was to go to Manuel with P20,000 amount assigned to Benjamin. - Any remaining income would be split on a 4:6 basis to Manuel and Bejamin respectively. In 2019, revenues totalled P90,000 with expenses reported as P64,000 (not including the compensation allowance assigned to the partners). Manuel withdrew cash of P8,000 during the year while Benjamin took out…On January 1, 2020, the dental partnership of Angela, Diaz, and Krause was formed when the partners contributed $48,000, $75,000, and $78,000, respectively. Over the next three years, the business reported net income and (loss) as follows: 2020 $ 88,000 2021 60,000 2022 (43,000 ) During this period, each partner withdrew cash of $20,000 per year. Krause invested an additional $5,000 in cash on February 9, 2021. At the time that the partnership was created, the three partners agreed to allocate all profits and losses according to a specified plan written as follows: Each partner is entitled to interest computed at the rate of 10 percent per year based on the individual capital balances at the beginning of that year. Because of prior work experience, Angela is entitled to an annual salary allowance of $14,500 per year, and Diaz is entitled to an annual salary allowance of $10,800 per year. Any remaining profit will be split as follows: Angela, 20…