Brian McCarthy Owns and Operates a Business Called Brian's Music

question 32

Essay

Brian McCarthy owns and operates a business called Brian's Music Shop.His postclosing trial balance on December 31,2016,is provided below.Brian plans to enter into a partnership with Emma Jones,effective January 1,2017.Profits and losses will be shared equally.Brian will transfer all assets and liabilities of his shop to the partnership,after revaluation.Emma will invest cash equal to Brian's investment after revaluation.The agreed values are: Accounts Receivable (net),$10,000;Merchandise Inventory,$35,000;and Store Equipment,$15,000.
The partnership will operate under the name Beautiful Music.
Record each partner's investment on page 1 of a general journal.Omit descriptions.
Prepare a balance sheet for Beautiful Music just after the investments.

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Definitions:

Foot In The Door

A persuasion technique where a small request is made first to increase the likelihood of agreement to a larger request later.

Lowballing

A persuasive technique in which an initially favorable offer is made to gain agreement, but then terms are made less advantageous to the target.

Idiosyncrasy Credit

The leeway or toleration a group affords to a member with established credibility to deviate from group norms without severe sanction.

Expectation-States Theory

Expectation-States Theory is a sociological theory that explains how individuals form expectations of others in a group and how these expectations influence interactions and hierarchies.