4:31+ A2C3.pdf12. Candy and Dandy have just formed a partnership. Candy contributed cash of P126,00 and computerequipment that cost P54,000. The fair value of the computer is P36,000. Candy has a notes payableon the computer of P12,000 to be assumed by the partnership. Candy is to have 60% capital interestin the partnership. Dandy contributed only P90,000. The profit and loss ratio of the partners agreedis equally.Candy should make an additional investment(withdrawal)of;a. P96,000b. P84,000c. P(76,800)d. P(15,000)Question 13 and 14 are based on the following data:On June 1, 2013, May and Nora formed a partnership. May is to invest assets at fair values. She isto transfer her liabilities is to contribute sufficient cash to bring her total capital to P210,000 which is 70%of the total capital of the partnership. Details regarding the book values of May's business assets andliabilities and their corresponding fair values are:Book ValuesFair ValuesAccounts Receivable (Net)53,800P53.000Inventory98,400107,000Equipment25,80034,000Notes payable56,00056,000Nora agrees to invest cash of P42,000 and merchandise values at current market price.13. What is the value of the merchandise to be invested by Nora?14. What is the amount cash to be invested by May?1,2013. The following15. Loren and Jamby decide to combine their businesses form a partnership onare their assets and liabilities on July 1, 2013 before formation:LorenJambyAssetsP210,750P103,000Liabilities91,00036,000The following agreements are made to adjusts assets and liabilities:a. Both partners will provide P5,000 allowance for doubtful accountsb. Loren's fixed assets were over-depreciated by P1,000 and Jamby's fixed assets were under -depreciated by P5,000II

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12. Candy and Dandy have just formed a partnership. Candy contributed cash of P126,00 and computer equipment that cost P54,000. The fair value of the computer is P36,000. Candy has a notes payable on the computer of P12,000 to be assumed by the partnership. Candy is to have 60% capital interest in the partnership. Dandy contributed only P90,000. The profit and loss ratio of the partners agreed is equally. Candy should make an additional investment(withdrawal)of; a. P96,000 b. P84,000 c. P(76,800) d. P(15,000)

12. Candy and Dandy have just formed a partnership. Candy contributed cash of P126,00 and computer equipment that cost P54,000. The fair value of the computer is P36,000. Candy has a notes payable on the computer of P12,000 to be assumed by the partnership. Candy is to have 60% capital interest in the partnership. Dandy contributed only P90,000. The profit and loss ratio of the partners agreed is equally. Candy should make an additional investment(withdrawal)of; a. P96,000 b. P84,000 c. P(76,800) d. P(15,000)

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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