Cates and elder agree to purchase nguyens equity

Assignment Help Accounting Basics
Reference no: EM131131916

B. Cates, V. Elder, and S. Nguyen have capital balances of $50,000, $40,000, and $32,000, respectively. Their income ratios are 5 : 3 : 2. Nguyen withdraws from the partnership under each of the following independent conditions.

1. Cates and Elder agree to purchase Nguyen's equity by paying $17,000 each from their personal assets. Each purchaser receives 50% of Nguyen's equity.

2. Elder agrees to purchase all of Nguyen's equity by paying $22,000 cash from her personal assets.

3. Cates agrees to purchase all of Nguyen's equity by paying $26,000 cash from her personal assets.

Instructions

Journalize the withdrawal of Nguyen under each of the assumptions above.

Reference no: EM131131916

Questions Cloud

What is the highest cost of capital that the firm could have : Develop the relevant cash flows needed to analyze the proposed replacement. Determine the net present value (N.PV) of the proposal. Determine the internal rate of return (ERR) of the proposal. Make a recommendation to accept or reject the replacement..
Assume instead that carson leaves the partnership : Assume instead that Carson leaves the partnership. Carson is paid $120,000 with a bonus to the retiring partner. Prepare the journal entry to record Carson's withdrawal.
Journalize the withdrawal of fisk under each : H. Barrajas, T. Dingler, and R. Fisk have capital balances of $95,000, $75,000, and $60,000, respectively. They share income or loss on a 5 : 3 : 2 basis. Fisk withdraws from the partnership under each of the following conditions.
Determine the initial investment required by the new press : a. Determine the initial investment required by the new press. b. Determine the operating cash inflows attributable to the new press. (Be sure to consider the depreciation in year 6.) c. Determine the payback period.
Cates and elder agree to purchase nguyens equity : Cates and Elder agree to purchase Nguyen's equity by paying $17,000 each from their personal assets. Each purchaser receives 50% of Nguyen's equity.
Should it be used before or after the nw evaluation : In your view, if the payback period method is used in conjunction with the NPV method, should it be used before or after the NW evaluation? And If it% close to 12, it’s probably a no-brainer.”
Evaluate the threaded implementation of the sort algorithm : You have had the opportunity to evaluate the performance of a threaded version of a sort algorithm and a non-threaded version of a sort algorithm.
Calculate pam uncompensated wage elasticity : Calculate Pam's uncompensated wage elasticity. Is it positive or negative? What does this say about the relative sizes of the income and substitution effects
Write an essay : write an essay base on that and follow all requirement.- My idea is to talk about faith and religion.- Compare the great hymn to the Aten to the psalm in the bible.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd