11. Mary admits Jane as a partner in the business. Balance sheet accounts of Mary just before the admission of Jane show: Cash, P26,000, Accounts receivable, P 120,000, Merchandise inventory, P180,000, and Accounts payable, P62,000. It was agreed that for purposes of establishing Mary's interest, the following adjustments be made: I.) an allowance for doubtful accounts of 3% of accounts receivable is to be established; 2.) merchandise inventory is to be adjusted upward by P25,000; and 3.) prepaid expenses of P3,600 and accrued liabilities of P4,000 are to be recognized.If Jane is to invest sufficient cash to obtain 2/5 interest in the partnership, how much would Jane contribute to the new partnership? * O 113,980 O 95,000 O 176,000 190,000
11. Mary admits Jane as a partner in the business. Balance sheet accounts of Mary just before the admission of Jane show: Cash, P26,000, Accounts receivable, P 120,000, Merchandise inventory, P180,000, and Accounts payable, P62,000. It was agreed that for purposes of establishing Mary's interest, the following adjustments be made: I.) an allowance for doubtful accounts of 3% of accounts receivable is to be established; 2.) merchandise inventory is to be adjusted upward by P25,000; and 3.) prepaid expenses of P3,600 and accrued liabilities of P4,000 are to be recognized.If Jane is to invest sufficient cash to obtain 2/5 interest in the partnership, how much would Jane contribute to the new partnership? * O 113,980 O 95,000 O 176,000 190,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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no.11
Transcribed Image Text:11. Mary admits Jane as a partner in the business. Balance sheet accounts
of Mary just before the admission of Jane show: Cash, P26,000, Accounts
receivable, P 120,000, Merchandise inventory, P180,000, and Accounts
payable, P62,000. It was agreed that for purposes of establishing Mary's
interest, the following adjustments be made: 1.) an allowance for doubtful
accounts of 3% of accounts receivable is to be established; 2.)
merchandise inventory is to be adjusted upward by P25,000; and 3.)
prepaid expenses of P3,600 and accrued liabilities of P4,000 are to be
recognized.If Jane is to invest sufficient cash to obtain 2/5 interest in the
partnership, how much would Jane contribute to the new partnership? *
O 113,980
O 95,000
O 176,000
O 190,000
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