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Question
Jane and Castle are partners and share equally in income or loss. Janes current capital balance is $140,000 and Castles is $130,000. Jane and Castle agree to accept Sean with a 30% interest in the partnership. Sean invests $108,000 in the partnership. The balances in Janes and Castles capital accounts after admission of the new partner equal:
A. Jane $140,000; Castle $130,000.
B. Jane $142,700; Castle $132,700.
C. Jane $145,000; Castle $135,000.
D. Jane $137,300; Castle $127,300.
E. Jane $135,000; Castle $124,000.
Answer
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Related questions
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Although a fixed budget is only useful over the relevant range of operations, a flexible budget is useful over all possible production levels.
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A fixed budget performance report never provides useful information for evaluating variances.
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Use the following information to prepare a budgeted income statement for Arbor Company for the month of June.
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d. Budgeted cash disbursements for salaries in June: $260,000. Salaries payable on May 31 are $60,000 and are expected to be $50,000 on June 30.
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g. Accrued income taxes due in June: $48,000.
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Q:
Use the following information to prepare the June cash budget for Arbor Company. It should show expected cash receipts and cash disbursement for the month and the cash balance expected on June 30.
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Q:
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D. Planning and control purposes.
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