12. FAME partnership is owned by four partners with partners' equity as follows: Freda Capital P500,000, Alida Capital P400,000, Minda Capital P300,000, and Edna Capital P300,000, with profit-and-loss ratios of 4:3:2:1, respectively. Dissatisfied with the partnership's operation for the past five years, she informs the partners that she is leaving them. She hires an independent appraiser to value the assets. Appraisal shows that the land was undervalued by P150,000. The remaining partners give in to the wish of Edna and agree to pay her P360,000 to leave the partnership. The remaining partners agree to share profits and losses equally.
12. FAME partnership is owned by four partners with partners' equity as follows: Freda Capital P500,000, Alida Capital P400,000, Minda Capital P300,000, and Edna Capital P300,000, with profit-and-loss ratios of 4:3:2:1, respectively. Dissatisfied with the partnership's operation for the past five years, she informs the partners that she is leaving them. She hires an independent appraiser to value the assets. Appraisal shows that the land was undervalued by P150,000. The remaining partners give in to the wish of Edna and agree to pay her P360,000 to leave the partnership. The remaining partners agree to share profits and losses equally.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Help to answer this one. Letters A-D
Transcribed Image Text:14. Liza, Fe and
d) Prepare the revised partners' equity of the remaining partners.
c) Give the journal entry to record Edna's retirement.
12. FAME partnership is owned by four partners with partners' equity as follows: Freda
Capital P500,000, Alida Capital P400,000, Minda Capital P300,000, and Edna Capital
P300,000, with profit-and-loss ratios of 4:3:2:1, respectively. Dissatisfied with the
partnership's operation for the past five years, she informs the partners that she is leaving
them. She hires an independent appraiser to value the assets. Appraisal shows that the land
was undervalued by P150,000. The remaining partners give in to the wish of Edna and
agree to pay her P360,000 to leave the partnership. The remaining partners agree to share
profits and losses equally.
ere
and
cs of
ssets
Direction:
a) Entry to record the asset revaluation.
* What amount will each remaining partner sacrifice to remove Edna from the
partnership?
Give the journal entry to record Edna's retirement.
pital.
rer
14. Liza, Fe u
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education