10. Fiona and Gary are partners with capital balances of P350,000 and P250,000, respectively. They agree to accept Romy who will contribute land which costs him P250,000 but its market value is P300,000. (see attached image for the actual questions/informations. please answer it based on your knowledge. thank you so much!) Direction: Make entries to record Romy’s admission based on the following independent cases: a) Romy will be given a 1/3 interest in the firm. No bonus or asset revaluation should be recognized. b) Romy will be given a 40% interest. Use the bonus capital method. c) Romy will be given a 40% interest. Assets should first be revalued. d) Romy will be given a 30% interest. Use the bonus capital method. e) Romy will be given a 30% interest. Assets should first be revalued.
10. Fiona and Gary are partners with capital balances of P350,000 and P250,000, respectively. They agree to accept Romy who will contribute land which costs him P250,000 but its market value is P300,000. (see attached image for the actual questions/informations. please answer it based on your knowledge. thank you so much!) Direction: Make entries to record Romy’s admission based on the following independent cases: a) Romy will be given a 1/3 interest in the firm. No bonus or asset revaluation should be recognized. b) Romy will be given a 40% interest. Use the bonus capital method. c) Romy will be given a 40% interest. Assets should first be revalued. d) Romy will be given a 30% interest. Use the bonus capital method. e) Romy will be given a 30% interest. Assets should first be revalued.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
10. Fiona and Gary are partners with capital balances of P350,000 and P250,000, respectively. They agree to accept Romy who will contribute land which costs him P250,000 but its market value is P300,000.
(see attached image for the actual questions/informations. please answer it based on your knowledge. thank you so much!)
Direction:
Make entries to record Romy’s admission based on the following independent cases:
a) Romy will be given a 1/3 interest in the firm. No bonus or asset revaluation should be recognized.
b) Romy will be given a 40% interest. Use the bonus capital method.
c) Romy will be given a 40% interest. Assets should first be revalued.
d) Romy will be given a 30% interest. Use the bonus capital method.
e) Romy will be given a 30% interest. Assets should first be revalued.
Transcribed Image Text:10. Fiona and Gary are partners with capital balances of P350,000 and P250,000, respectively.
They agree to accept Romy who will contribute land which costs him P250,000 but its
market value is P300,000.
Direction:
Make entries to record Romy's admission based on the following independent cases:
a) Romy will be given a 1/3 interest in the firm. No bonus or asset revaluation should be
recognized.
b) Romy will be given a 40% interest. Use the bonus capital method.
c) Romy will be given a 40% interest. Assets should first be revalued.
d) Romy will be given a 30% interest. Use the bonus capital method.
e) Romy will be given a 30% interest. Assets should first be revalued.
Jonces are
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