50,000, Merchandise Inventory, P170,000, Accounts Payable, P52,000. It was agreed that for purposes of establishing Moira’s interest, the following adjustments should be made: 1.) an allowance for doubtful accounts of 3% of accounts receivable is to be established; 2.) merchandise inventory is to be increased by P25,000; 3.) prepaid expenses of P7,600 and accrued liabilities
50,000, Merchandise Inventory, P170,000, Accounts Payable, P52,000. It was agreed that for purposes of establishing Moira’s interest, the following adjustments should be made: 1.) an allowance for doubtful accounts of 3% of accounts receivable is to be established; 2.) merchandise inventory is to be increased by P25,000; 3.) prepaid expenses of P7,600 and accrued liabilities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Moira admits Joni as a partner in the business.
admission of July shows:
Cash, P43,000,
Merchandise Inventory, P170,000,
Accounts Payable, P52,000.
It was agreed that for purposes of establishing Moira’s interest, the following adjustments should be made:
1.) an allowance for doubtful accounts of 3% of accounts receivable is to be established;
2.) merchandise inventory is to be increased by P25,000;
3.) prepaid expenses of P7,600 and accrued liabilities of P4,800 are to be recognized. If Joni is
to invest sufficient cash to obtain 2/5 interest in the partnership,
What amount should she contribute to the new business? *
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