Business, 15.10.2020 08:01 edjiejwi

Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows: Floyd $50,000
Merriam 23,000

They agreed to admit Ramelow into the business for a one-fifth interest in the new partnership. Ramelow contributes $27,000 cash in exchange for the partnership interest. Assume that Floyd and Merriam shared profits and losses in a 3:1 ratio before the admission of Ramelow. Which of the following is the correct journal entry to record the above admission?

a. Cash 27,000
Ramelow, Capital 27,000

b. Cash 27,000
Merriam, Capital 7,000
Floyd, Capital 20,000

c. Merriam, Capital 20,000
Floyd, Capital 7,000
Ramelow, Capital 27,000

d. Cash 27,000
Floyd, Capital 5,250
Merriam, Capital 1,750
Ramelow, Capital 20,000

Answers: 2

Show answers

Other questions on the subject: Business

Business, 23.06.2019 05:50, laderickaluckey

Ineed the answer today! explain how inflation can be built into the system

Answers: 1

continue

Business, 23.06.2019 10:10, hannahbear16841

Which of the following is not correct about renter's insurance? multiple choice renter's insurance is relatively inexpensive. renter's insurance covers the building and other structures on the site. typical coverage pays only the actual cash value of one's losses. the comprehensive form protects personal property against perils not specifically excluded in the policy. the broad form covers personal property against perils specified in the policy.

Answers: 3

continue

Business, 23.06.2019 13:10, makaylahunt

Liberty capital had seen its net income increase dramatically from the previous year, yet over the same period of time, its net cash provided from operations had decreased. which of the following would explain how this situation came about? liberty's expenditures on fixed assets had declined. liberty's depreciation and amortization expenses had declined. liberty's interest expense had increased. liberty's cost of goods sold had increased.

Answers: 2

continue

Business, 23.06.2019 23:10, 25linm

You want to buy a new ski boat 2 years from now, and you plan to save $6,400 per year, beginning one year from today. you will deposit your savings in an account that pays 6.2% interest. how much will you have just after you make the 2nd deposit, 2 years from now?

Answers: 2

continue

You know the right answer?

Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as o...