Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract to purchase $12,200 of merchandise for the store. Amy says she did not authorize the order and that she could have purchased the same merchandise for $9,200. Amy refuses to pay for the order. The vendor sues the partners. a. Must the partnership pay for the merchandise? If yes, how much? b. Assuming the partnership is a general partnership, can Amy's personal assets be taken to pay for the merchandise? Complete this question by entering your answers in the tabs below. Required A Required B Must the partnership pay for the merchandise? If yes, how much? Partnership pay for the merchandise Required A Required B >
Q: Paul Gee Limited buys and resells machines. Paul Geel is known to buy and sell in the City. During…
A: Trading company purchases goods at a lower rate and sells them at a higher price to make a profit.…
Q: The following incomplete (columns have missing amounts) pension spreadsheet is for Old Tucson…
A: A company's current financial needs to pay for future pension liabilities are calculated actuarially…
Q: 6. Keli Trading maintain a petty cash book based on the imprest system since its commencement. At…
A: A petty cash book with the columns of each own head of expenses incurred during the period is…
Q: The following amounts were taken from the accounting records of Dust, Sweep, Repeat Services, Inc.,…
A: Income Statement - The income statement summarizes a company's revenues, expenses, gains, and losses…
Q: George recently received a great stock tip from his friend, Mason. George didn't have any cash on…
A: As per the IRS provisions, any interest due towards money borrowed for investment purposes (also…
Q: a. What is Berdine's basis in the distributed land? b. If an optional $ 754 adjustment-to-basis…
A: Proportionate liquidating distribution rules dictate that when a partnership is dissolved, assets…
Q: Required information [The following information applies to the questions displayed below] At the…
A: Depreciation is an essential accounting concept used to allocate the cost of tangible assets over…
Q: Write off and Recovery Entries Prepare the appropriate journal entries for the following…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Diego Company manufactures one product that is sold for $80 per unit. The following information…
A: Lets understand the basics.Income statement can be prepared using,(1) Absorption costing (2)…
Q: Seymore named his wife
A: Gross income includes your wages, interest, dividends, capital gains, business income, retirement…
Q: E3-10 (Algo) Preparing an Income Statement LO3-5 Stacey's Piano Rebuilding Company has been…
A: Income Statement : It is a part of financial statement of a company in which revenue and expenses…
Q: Use the 5 lease criteria to determine if the following lease qualifies as a Capital, Financing…
A: A lease is defined as a contractual agreement incorporated between two business entities where one…
Q: Which of the following represents two management functions? Regulating and directing O Controlling…
A: Management functions are a set of activities and processes that are essential for effective…
Q: Bran Corporation plans to discontinue a division that generates a total contribution margin of…
A: Differential analysis in cost accounting involves comparing the relevant costs and revenues of…
Q: The sales, income from operations, and invested assets for each division of Wren Company are as…
A: Residual income is the difference between net operating income and the minimum required return. The…
Q: Credit Card Sales Prepare journal entries for the following credit card sales transactions (the…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Required Information [The following information applies to the questions displayed below] The first…
A: Weighted Average Method :— Under this method, Equivalent units is calculated by adding equivalent…
Q: Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year)…
A: Section 179 provides the facility where assets purchased can be directly expensed instead of…
Q: On January 1, 2021, Sweet Inc. granted stock options to officers and key employees for the purchase…
A: Solution:Journal entry:Date Account titles & ExplanationDebit $Credit $Jan.1,2021No journal…
Q: In 2021, Holyoak Inc. offers a coupon for $20 off qualifying purchases of its new line of products.…
A: Coupons basically a facility provided to customer to return or repair the product if there any…
Q: if total liabilities decreased by $23,894 during a period of time and owner's equity increased by…
A: ACCOUNTING EQUATIONAccounting Equation is a Financial Accounting Technique which represents the…
Q: The following data from the just-completed year are taken from the accounting records of Eccles…
A: The cost of goods manufactured (COGM) is an important accounting term that calculates the overall…
Q: Solve for a simple discount note: (Round
A: Maturity Value is the complete face value of the note that the issuer is required to return at the…
Q: company has annual sales of $120,000, average accounts payable of $35,000, and average accounts…
A: Days of sales outstanding is calculated by dividing number of days in a year by accounts receivable…
Q: Required information Exercise 5-6A (Static) Income tax effect of shifting from FIFO to LIFO LO 5-1…
A: FIFO stands for First In First Out which is an inventory valuation system. As per FIFO method, the…
Q: Natalie and Curtis have been experiencing great demand for their cookies and muffins. As a result,…
A: For Cookie & Coffee Creations Inc.,Cost of a commercial oven - $22,100Accumulated savings -…
Q: Nash Company has the following adjusted accounts and balances at year-end (June 30): Accounts…
A: The trial balance is prepared by posting final balance from the T-accounts of the business. The…
Q: Sarah is a cash-method, calendar-year taxpayer, and she is considering making the following cash…
A: A cash-method, calendar-year taxpayer is that tax payer who will report income and deductions in…
Q: On January 1, Blossom Inc. issued $7300000, 9% bonds for $7774500. The market rate of interest for…
A: Cash payment of interest ($7,300,000 * 9%)$657,000Less: Interest Expense ($7,774,500 *…
Q: The following information concerns production in the Baking Department for August. All direct…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Stock Number 23-879 20-253 44-981 165-874 60-358 68-847 52-986 35-456 Cost $4.94 $7.98 $21.78 $20.79…
A: Sale Price = Cost price + mark up costMark upcost = Cost Price * markup%Cost Price = Markup cost/…
Q: Sage Hill Inc. traded a used vehicle (cost $25,000, accumulated depreciation $22,000) for another…
A: JOURNAL ENTRY A journal entry records a business transaction in the accounting system of an…
Q: ABC Company's balance sheets for 2027 appear below: Jan. 1 Dec. 31 ASSETS: Cash Accounts receivable…
A:
Q: Knowledge Check Tri Golf Course purchased a golf cart at a cash price of $14,000. Related cash…
A: Cost of an asset is the amount paid for an asset and for expenses incurred in putting the asset in…
Q: Prepare the December 31 adjusting entry to report these investments at fair value. Complete this…
A: A fair value adjustment on the available for sale securities or financial instruments is the…
Q: Name FINANCIAL ACCOUNTING Inventory Costing Case On January 1, 2022, Chris Columbus decided to start…
A: The question is based on the concept of Cost Accounting.The value of the ending inventory and the…
Q: order for 1,000 boxes of medical-testing agent has the following production requirements. Machine…
A: Overhead costs means all type of indirect costs and expenses being incurred in business. Under…
Q: On a worksheet, the income statement debit column totals $11,000 and the credit column totals $9,500…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…
Q: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory…
A: Product cost includes all the direct expenses and overheads related to manufacturing the product…
Q: SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los…
A: Under activity-based costing method, the cost is allocated to each activity based on its…
Q: A company receiving payment of a $20,000 accounts receivable within 10 days with terms of 2/10,…
A: Sales discount is the decrease in the amount of gross sales which is allowed by seller for early…
Q: At each calendar year-end, Mcmichael Supply Co. uses the percent of accounts receivable method to…
A: The allowance for uncollectible accounts is a contra-asset account that represents the estimated…
Q: On December 31, Harper Inc., reported, on its year-end financial statements, the following (in…
A: Return on Assets: It refers to a financial ratio that is often used by the business to analyze or…
Q: A company that operates a process costing system had work-in-progress at the start of last month of…
A: Process costing allocates costs to a product that undergoes a continuous manufacturing…
Q: The production budget for Juno & Jones, Inc. shows the company expects to produce 450 units in the…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: Current ratios Working capital A/R turnover Inventory Turnover Asset turnover Total debt to total…
A: Ratio analysis is a quantitative process that examines financial records and statements to provide…
Q: 1. Mcquain Boat Wash's cost formula for its cleaning equipment and supplies is $1,950 per month plus…
A: The budget is prepared to compare the actual amd budgeted production data. The flexible budget is…
Q: Pharoah Corporation began 2025 with a $41,400 balance in the Deferred Tax Liability account. At the…
A: Deferred TaxLiability: It refers to the tax charges that are due to a business in the current period…
Q: Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business…
A: ATI = Business Revenue - Business Expenses + Business Interest IncomeATI = $95.5 million - $88.6…
Q: The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units…
A: Variance analysis is one of the technique used in management accounting. Under this, all standard…
dvuben
Step by step
Solved in 3 steps
- Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract to purchase $10,000 of merchandise for the store. Amy says she did not authorize the order and that she could have purchased the same merchandise for $7,000. Amy refuses to pay for the order. The vendor sues the partners. a. Must the partnership pay for the merchandise? If yes, how much? b. Assuming the partnership is a general partnership, can Amy’s personal assets be taken to pay for the merchandise?Usama, Shahid and Hassan are partners in a partnership firm. With an agreement among them, they decided that no partner will have the authority to buy or sell goods above Rs. 20,000 without other partners’ consent. Unaware of this provision (restriction), Ali sold goods worth Rs. 45,000 to Shahid who did not inform (or consult with) other partners. According to Partnership Act, explain whether the partnership firm and its partners are liable to Ali under the circumstances mentioned above.B promised that he will deliver a house and lot for the partnership to use for its manufacturing process. On the agreed date, B was not able to show the partnership the location of the house and lot. Later on, B informed the partnership that the house and lot were burned down. What is the remedy of the partnership against B? The partnership may file a civil case to compel B to pay damages. The partnership may file a civil case for judicial settlement of B. The partnership may file a criminal complaint of estafa against B. The partnership may file a criminal complaint of trespassing against B.
- The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Zed is personally insolvent, and one of his creditors is considering suing the partnership for the $10,000 that is currently owed. The creditor realizes that this litigation could result in partnership liquidation and does not wish to force such an extreme action unless Zed is reasonably sure of obtaining at least $10,000 from the liquidation. Determine the amount for which the partnership must sell the other assets to ensure that Zed receives $10,000 from the liquidation. Liquidation expenses are expected to be $30,000.Farah and David decide to form a sports memorabilia retail partnership. They have known each other since business graduate school and have always worked well together on various projects. The business is doing well but cash flow is very tight. Farah takes several calls from vendors asking for payment. He believed David had been paying the bills. When he asks about this, David admits to embezzling from the partnership. What liability does Farah face as a result of the theft? Are you for or against a partnership? Please explain.Neil and Dylan are partners in a lawn mower repair business in Ohio. While Neil is on vacation visiting his sister in Georgia, his sister's neighbor has trouble with her mower and Neil fixes it for her. She insists on paying him . Neil : O a. may keep the money as this partnership is NOT a professional business pursuant to the non - professional exception rule. O b. may not accept the money because it would create a conflict of interest. O c. may keep the payment since he did the work while he was on vacation. O d. may not accept the money because it would mean he was taking a business opportunity away from the partnership. O e. must turn the money over to the partnership because he earned it doing the kind of work that the partnership does.
- Phillips and Harris are partners in a used car business. Under their oral partnership, each has an equal voice in the conduct and management of the business. Because of their irregular business hours, the two further agreed that they could use any partnership vehicle as desired. This use includes transportation to and from work, even though the vehicles are for sale at all times. Harris conducted partnership business both at the used car lot and from his home. He was on call by Phillips or customers at his home, and he went back to the lot two or three times after going home. While driving a partnership vehicle home from the used car lot, Harris negligently hit a car driven by Cook, who brought this action against Harris and Phillips individually and as copartners for his injuries. Who is liable?Marco decides to take $2,000 from the partnership for the repair and record it as an expense of the partnership. He believes that this is appropriate since he needs his car to get to work every day. Is Marco behaving ethically? Why or why not? Who is affected by Marco’s decision? What other alternatives might Marco consider?Partner Ross is insolvent, having no personal assets and owes $30,000 to his personal creditors. Ross is a partner with Williams and Zellin and the partnership balance sheet is as follows: Partnership Balance Sheet Cash $240,000 Liabilities $150,000 Ross Capital 20,000 Williams Capital 30,000 Zellin Capital 40,000 How much can Ross’s personal creditors claim against partnership cash
- The partnership of Matteson, Richton, and O’Toole has existed for a number of years. At the present time, the partners have the following capital balances and profit and loss sharing percentages: Partner Capital Balance Profit and Loss Percentage Matteson $ 126,000 30 % Richton 174,000 45 O’Toole 155,000 25 O’Toole elects to withdraw from the partnership, leaving Matteson and Richton to operate the business. Following the original partnership agreement, when a partner withdraws, the partnership and all of its individual assets are to be reassessed to current fair values by an independent appraiser. The withdrawing partner will receive cash or other assets equal to that partner’s current capital balance after including an appropriate share of any adjustment indicated by the appraisal. Gains and losses indicated by the appraisal are allocated using the regular profit and loss percentages. An independent appraiser is hired and estimates that the…Martin Manera is one of three partners who own and operate TaftWorld, a global import and export business. Martin is the partner in charge of recording partnership transactions in the accounts. One day while driving to work, Martin’s car broke down. Upon inspection, the mechanic discovered the engine had to be replaced at a cost of $5,000. Martin does not have enough money in his bank account and his credit cards are at their limits. He has to have this car to come to work, and he only uses his car for this purpose. He decides to take $5,000 from the partnership for the repair and record it as an expense of the partnership. What are three ethical issues in this scenario?The partnership of Matteson, Richton, and O’Toole has existed for a number of years. At the present time, the partners have the following capital balances and profit and loss sharing percentages: Partner Capital Balance Profit and Loss Percentage Matteson $ 149,600 40 % Richton 190,400 40 O’Toole 175,000 20 O’Toole elects to withdraw from the partnership, leaving Matteson and Richton to operate the business. Following the original partnership agreement, when a partner withdraws, the partnership and all of its individual assets are to be reassessed to current fair values by an independent appraiser. The withdrawing partner will receive cash or other assets equal to that partner’s current capital balance after including an appropriate share of any adjustment indicated by the appraisal. Gains and losses indicated by the appraisal are allocated using the regular profit and loss percentages. An independent appraiser is hired and estimates that the…