30,000.00 Accounts Receivable 400,000.00 Allowance for Doubtful Accounts 36,000.00 Merchandise Inventory 110,000.00 Equipment-net 134,000.00 Accounts Payable 38,000.00 Hershey, Capital 300,000.00 Sonny Capital 300,000.00 On July 1, 2021 prior to the admission of Sheryl, the partnership of Hershey and Sonny have the following account balances: Hershey and Sonny share profits and loss on 1:1 ratio. Before admission of Sheryl, the partners agree on the following adjustments to bring the assets and liabilities to their fair values: a. The allowance for doubtful accounts should be brought to 10% of the outstanding accounts receivable. b. The current market value of the merchandise inventory is P140,000. C. Accrued expenses of P4,000 should be recognized in the accounting records If Sheryl is admitted into the partnership upon cash investment of P400,000 for 2/5 interest in capital the total popital of the partnershin just AFTER the admission of Sheryl? *

30,000.00 Accounts Receivable 400,000.00 Allowance for Doubtful Accounts 36,000.00 Merchandise Inventory 110,000.00 Equipment-net 134,000.00 Accounts Payable 38,000.00 Hershey, Capital 300,000.00 Sonny Capital 300,000.00 On July 1, 2021 prior to the admission of Sheryl, the partnership of Hershey and Sonny have the following account balances: Hershey and Sonny share profits and loss on 1:1 ratio. Before admission of Sheryl, the partners agree on the following adjustments to bring the assets and liabilities to their fair values: a. The allowance for doubtful accounts should be brought to 10% of the outstanding accounts receivable. b. The current market value of the merchandise inventory is P140,000. C. Accrued expenses of P4,000 should be recognized in the accounting records If Sheryl is admitted into the partnership upon cash investment of P400,000 for 2/5 interest in capital the total popital of the partnershin just AFTER the admission of Sheryl? *

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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