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1. Prepare the entries to record the investments of Aquino and Asuncion in the partnership's new set of books.

1. Prepare the entries to record the investments of Aquino and Asuncion in the partnership's new set of books.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Aquino and Asuncion have decided to form a partnership. Aquino invests the assets presented below at their agreed valuation, and also transfers his liabilities to the new firm. Ledger Balances P450,000 Agreed Valuation P 450,000 180,000 10,000 270,000 125,000 Cash Accounts Receivable Allowance for Uncollectible Accounts Merchandise Inventory Equipment Accumulated Depreciation Accounts Payable Notes Payable 180,000 15,000 300,000 180,000 30,000 105,000 90,000 105,000 90,000 Asuncion agrees to invest cash for a one-third interest in the firm. Instructions: 1. Prepare the entries to record the investments of Aquino and Asuncion in the partnership's new set of books. 2. Prepare the entries to adjust and close the balances of accounts in the books of Aquino.
Transcribed Image Text:Aquino and Asuncion have decided to form a partnership. Aquino invests the assets presented below at their agreed valuation, and also transfers his liabilities to the new firm. Ledger Balances P450,000 Agreed Valuation P 450,000 180,000 10,000 270,000 125,000 Cash Accounts Receivable Allowance for Uncollectible Accounts Merchandise Inventory Equipment Accumulated Depreciation Accounts Payable Notes Payable 180,000 15,000 300,000 180,000 30,000 105,000 90,000 105,000 90,000 Asuncion agrees to invest cash for a one-third interest in the firm. Instructions: 1. Prepare the entries to record the investments of Aquino and Asuncion in the partnership's new set of books. 2. Prepare the entries to adjust and close the balances of accounts in the books of Aquino.
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