2. Cyril, Joseph, and Reggie formed a partnership named CJR Partnership Ltd. Cyril contributed cash of P150,000 and his store equipment that originally cost P160,000 with the second value of P125,000. Joseph will contribute P180,000 cash while Reggie, whose family sells computers, will contribute P250,000 cash and a brand-new computer that cost his family's computer dealership P150,000 but with a regular selling price of P160,000. They agreed to share profits and losses equally. Questions: a. Assuming that you are hired as the new accountant of the new partnership, how will you record the contributions made by Cyril and Reggie? Justify your answer in no more than three (3) sentences. b. Give the adjusting entry to be made at the date of formation.
2. Cyril, Joseph, and Reggie formed a partnership named CJR Partnership Ltd. Cyril contributed cash of P150,000 and his store equipment that originally cost P160,000 with the second value of P125,000. Joseph will contribute P180,000 cash while Reggie, whose family sells computers, will contribute P250,000 cash and a brand-new computer that cost his family's computer dealership P150,000 but with a regular selling price of P160,000. They agreed to share profits and losses equally. Questions: a. Assuming that you are hired as the new accountant of the new partnership, how will you record the contributions made by Cyril and Reggie? Justify your answer in no more than three (3) sentences. b. Give the adjusting entry to be made at the date of formation.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:2. Cyril, Joseph, and Reggie formed a partnership named CJR Partnership Ltd. Cyril contributed cash of
P150,000 and his store equipment that originally cost P160,000 with the second value of P125,000.
Joseph will contribute P180,000 cash while Reggie, whose family sells computers, will contribute
P250,000 cash and a brand-new computer that cost his family's computer dealership P150,000 but with
a regular selling price of P160,000. They agreed to share profits and losses equally.
Questions:
a. Assuming that you are hired as the new accountant of the new partnership, how will you record the
contributions made by Cyril and Reggie? Justify your answer in no more than three (3) sentences.
b. Give the adjusting entry to be made at the date of formation.
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