1. How much is the adjusted capital balance of Santos after the wirting-off from the records the accounts receivable and accounts payable accounts? A. 255,000 B. 275,000 C. 260,000 D. None of these 2. How much cash should Santos withdraw to meet one of the proposed conditions? A. 45,000 B. 50,000 C. 70,000 D. none of these 3. How much is the new capitalization of the partnership? A. 490,000 B. 510,000 C. 520,000 D. none of these
The post-closing
Cash 80,000
Allowance for Doubtful Accounts 15,000
Merchandise 175,000
Accounts Payable 60,000
Santos, Capital 280,000
Total 355,000
Malvin Cruz offers to invest cash of 200,000 and an equipment costing 70,000 ( fair market value of 80,000) under the following conditions:
A. The accounts receivable shall be burden of Santos for collection and shall not form part of his investment in the partnership.
B. The accounts payable shall not be carried in the book of partnership and will treated as personal liability of Santos.
C. Santos may withdraw or contribute cash to make his capital balance equal to 3/4 of Cruz's offered investment.
1. How much is the adjusted capital balance of Santos after the wirting-off from the records the accounts receivable and accounts payable accounts?
A. 255,000
B. 275,000
C. 260,000
D. None of these
2. How much cash should Santos withdraw to meet one of the proposed conditions?
A. 45,000
B. 50,000
C. 70,000
D. none of these
3. How much is the new capitalization of the partnership?
A. 490,000
B. 510,000
C. 520,000
D. none of these
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