9. On January 1, 2016, AB and QR agreed to form a partnership. The following are their assets and liabilities. Accounts QR P76,000 Cash Accounts Receivable Inventories Machinery Accounts Payable Notes Payable AB P136,000 88,000 48,000 304,000 364,000 480,000 440,000 216,000 144,000 140,000 60,000 AB decided to pay-off his notes payable from his personal assets. It was also agreed that QR inventories were overstated by P24,000 and AB machinery was over-depreciated P20,000. QR is to invest/withdraw cash in order to receive a capital credit that is 20% more than AB's total net investment in the partnership. Immediately after formation, how much cash will be presented in the partnership' Statement of Financial Position?

9. On January 1, 2016, AB and QR agreed to form a partnership. The following are their assets and liabilities. Accounts QR P76,000 Cash Accounts Receivable Inventories Machinery Accounts Payable Notes Payable AB P136,000 88,000 48,000 304,000 364,000 480,000 440,000 216,000 144,000 140,000 60,000 AB decided to pay-off his notes payable from his personal assets. It was also agreed that QR inventories were overstated by P24,000 and AB machinery was over-depreciated P20,000. QR is to invest/withdraw cash in order to receive a capital credit that is 20% more than AB's total net investment in the partnership. Immediately after formation, how much cash will be presented in the partnership' Statement of Financial Position?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please answer the following and provide solution/explanation.
The partnership of Dolla, Earl, and Festus was dissolved on January 1, 2014. The balance sheet at that date is shown below: Cash $ 12,000 Liabilities $ 36,000 Other assets 70,000 Loan from Dolla 1,000 Loan to Festus 8,000 Dolla, capital (20%) 6,000 Earl, capital (30%) 16,000 Festus, capital (50%) 31,000 Total assets $ 90,000 Total liab./equity $ 90,000 In January, $34,000 of the accounts receivable was collected, and an additional $6,000 was determined to be uncollectible. The remaining receivables…
Cc. 187.
On September 13, 2016, AA and BB decided to combine their assets and form a partnership. The partnership is to take over the business assets and assume the business liabilities; and capitals are to be based on net assets and transferred after the following adjustments. 1. BB's inventory is to be valued at P140,000. 2. A 5% allowance for uncollectible accounts is to be established on the accounts receivable of each party. 3. Accrued liabilities of P8,000 are to be recognized in AA's books. The statements of financial position on September 13 before adjustments are given below.
Annie, Emy and Mary are in the process of liquidating their partnership and their account balance as of August 1, 2015 are as follows: Debit Credit Cash P 15 000 Non – cash assets 35 000 P 7 000 5 000 Emy, Loan Annie, Capital Emy, Capital Mary, Capital 17 500 20 500 The profit and loss sharing ratio has been 4:3:3 between Annie, Emy and Mary respectively. 1. Assuming that the partners hip realized P 15 000 from the sale of non – cash assets and that any deficiency is uncollectible, Emy must receive: а. Р 17000 b. Р 18500 с. Р9 500 d. Not given 2. If Annie had personal assets of P 25 000 and personal liabilities of P 22 500 and that the partnership realized P 12 500 from the sale of its non – cash assets, Mary must receive. а. Р 20 500 b. Р 12 500 с. Р 13 000 d. Not given
• On September 13, 2016, AA and BB decided to combine their assets and form a partnership. The partnership is to take over the business assets and assume the business liabilities; and capitals are to be based on net assets transferred after the following adjustments: 1. BB's inventory is to be valued at P140,000. 2. A5% allowance for uncollectible accounts is to be established on the accounts receivable of each party. 3. Accrued liabilities of P8,000 are to be recognized in AA's books. The statements of financial position on September 13 before adjustments are given below. AA BB Cash P75.000 P45.000 Accounts Receivable 180,000 150,000 Inventory 160,000 120,000 Property and Equipment 100,000 120,000 Accumulated Depreciation (45000) (15.000) 420,000 Accounts Payable 138,000 200,000 Capital 332.000 320 000 420.000 • Required: 1. Prepare the entries to adjust and close books of AA and BB. 2. Prepare the opening entries in the books of the partnership. 3. Prepare the statement of financial…
How much cash should be distributed to Allan?
6. * Assuming that any deficiency is uncollectible, the cash paid to Dong.a) 36.000b) 3.500c) 2.667d) 33.333
Problem 2: Julia and Joshua entered into a partnership on April 1, 2013, investing P 625,000 and P 375,000, respectively. It was agreed that Julia, the managing partner, is to receive a salary of P 162,875 per annum and 10% of net income after adjustment for the salary, the partners failed to come into an agreement on how to allocate the remaining profit. On March 31, 2014, account balances are as follows:
For what purposes did the AICPA create the Accounting Principles Board?
Andy and lan formed a partnership on April 1, 2017. Andy contributes equipment to the business that originally cost $82,000 and on which accumulated depreciation of $16,000 has ndy contributes been recorded. The current market value of the equipment is $74,000. The value of the equipment recorded in the partnership journal is OA. $74,000 O B. $66,000 O C. $82,000 OD. $58,000
Hello! Please only choose the correct answer. Thank you.