A and B are combining their separate businesses to form a partnership. Presented hereare the Statements of Financial Position before any adjustments:Current AssetsNon-current AssetsTotal Liabilities●A617,500848,000150,000B672,500970,000178,000They agreed to set up P5,000 each as uncollectible accounts on their accountsreceivable.They also found out that their Non-current assets (all depreciable assets) wereunder-depreciated by P80,000 each.The partners agreed to equalize their capital balance upon formation. Compute thetotal capital of the partnership.

When two different business merge together and put their capital in a business, it is considered as…

Answered: A and B are combining their separate…

A and B are combining their separate businesses to form a partnership. Presented here are the Statements of Financial Position before any adjustments:

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 27P

See similar textbooks

Similar questions

Mikasa Ackerman and Eren Yeager agreed to form a partnership contributing their respective assets and liabilities subject to the following adjustments:a. Accounts receivable of P50,000 and P750,000 in their respective books are uncollectible.b. Inventories of P27,500 and P33,500 are worthless in their respective books.c. Other assets of P10,000 and P18,000 in Mikasa Ackerman’ and Eren Yeager’s books are to be written off.After considering the partner’s agreement, Mikasa Ackerman’ total liability to be recorded in the new partnership book is, P2,943,250 P1,894,700 P894,700 P1,218,250 How much is the total liabilities of the partnership at formation? P 1,894,700 P 4,837,950 P10,800,590 P 5,962,640 What is the net realizable value of the accounts receivable of Mikasa Ackerman after adjustment? P2,739,450 P2,789,450 P1,122,680 P2,789,450
The business assets of Cee and Dee appear below: Cee and Dee agreed to form a partnership by contributing their respective assets and equities with the following adjustments:a. Accounts receivable of $20,000 in Cee’s books and $35,000 in Dee’s books are uncollectible.b. Inventories of $5,500 and $6,700 are worthless in Cee’s and Dee’s respective books.c. Other assets of $2,000 and $3,600 in Cee’s and Dee’s respective books are to be written off. 1. What are the capital accounts of the partners after the adjustments? Cee Dee Cee DeeA. 614,476 683,052 C. 640,876 683,052B. 615,942 717,894 D. 640,876 712,345 2. What amount is the total assets that the partnership have after the formation?A. 2,237,918 B. 2,337,918 C. 2,265,118 D. 2,365,218
CC admits DD as a partner in business. Accounts in the ledger for CC on November 30, 20x4, just before the admission of DD, show the following balances: Cash.... P 6,800 Accounts Receivable... 14,200 Merchandise Inventory... 20,000 Accounts Payable.. . 8,000 CC, Capital... 33,000 It is agreed that for the purposes of establishing CC's interest the following adjustments shall be made: 1. An allowance for doubtful accounts of 3% of account receivable is to be established. 2. The merchandise inventory is to be valued at P23,000. 3. Prepaid salary expenses of P600 and accrued rent expense of P800 are to be recognized. 1 DD ic to invest sufficient cash to obtain a 1/3 interest in the
And the following accounts and balances were taken from the records of Caloy: Cash P 32,354 Accounts Receivable 577,890 Other Assets 13,600 Inventories 270,102 Accounts Payable 253,650 Building 438,267 Notes Payable 355,000 Furniture and Fixtures 44,789 Caloy, capital 738,352 Bonbon and Caloy agreed to form a partnership by contributing their respective assets and equities subject to the following adjustments: a) Inventories of P6,500 and P6,700 are worthless in Bonbon's and Caloy's respective books. b) Accounts Receivable of P25,000 Bonbon's book and P30,000 in Caloy's book are uncollectible. c) Other assets of P4,000 and P6,000 in Bonbon and Caloy's respective books are to be written off. d. The partnership assumes the unrecorded mortgage on the building, P45, 500 How much is the total liabilities to be assumed by the partnership?
Assume the partnership income-sharing agreement calls for income to be divided with a salary of $30,000 to Coburn and $25,000 to Webb, with the remainder divided 35% to Coburn and 65% to Webb. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation > Debit Credit
A and B formed a partnership and agreed to divide initial capital equally even if A contributed P100,000 and B contributed P84,000 in identifiable assets. Under the bonus approach to adjust the capital accounts, what amount should be debited to B's unidentifiable assets?
Immediately prior to the admission of Abbott, the Smith-Jones Partnership assets had been adjusted to current market prices and the capital balances of Smith and Jones were $54,800 and $59,300, respectively. If the parties agree that the business is worth $152,100, what is the amount of bonus that should be recognized in the accounts at the admission of Abbott? a.$38,000 b.$97,300 c.$92,800 d.$19,000
On August 1, AA and BB pooled their assets to form a partnership, with the firm to take over their business assets and assume the liabilities. Partner's capitals are to be based on net assets transferred after the following adjustments. Profit & loss are allocated equally. BB's inventory is to be increased by P4,000, an allowance for doubtful account of P1,000 and P1,500 are to be set up in books of AA and BB, respectively; and accounts payable of P4,000 is to be recognized in AA's books. The individual trial balances on August, before adjustments, follow: AA BB Assets Liabilities 75,000 113,000 5,000 34,500 What is the capital of AA and BB after the above adjustments? O A. AA (68,750); BB (77,250) O B. AA (75,000); BB (81,000) O C. AA (65,000); BB (76,000) O D. AA (65,000); BB (81,000)
Coburn (beginning capital, $60,000) and Webb (beginning capital $86,000) are partners. During 2022, the partnership earned net income of $74,000, and Coburn made drawings of $20,000 while Webb made drawings of $22,000.
What is Koothrapali’s capital balance after adjustments but before making any cash investment or withdrawal? How much cash shall Koothrapali invest (withdraw) to comply with the partnership agreement?
What is the capital of Jungkook after the adjustments?
The CDG Carlos, Dan, and Gall Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows: Assets Cash Accounts Receivable (net) Inventories Property, Plant and Equipment (net) Total Assets Liabilities and Capital Liabilities: Accounts Payable Capital: CDG PARTNERSHIP Balance Sheet At December 1, 20x6 Carlos, Capital Dan, Capital Gail, Capital Total Capital Total Liabilities and Capital $138,000 68,000 78,000 Personal assets Personal liabilities Personal net worth $ 34,000 93,000 118,000 336,000 $581,000 $297,000 284,000 $581,000 Additional Information 1. Each partner's personal assets (excluding partnership capital interests) and personal liabilities as of December 1, 20X6, follow: Carlos Dan Gail $ 268,000 $310,000 $368,000 (239,000) (231,000) (340,000) $ 87,000 $ 28,000 $ 29,000 2. Carlos, Dan, and Gall share profits and losses in the ratio 15:45:40, 3. CDG sold all noncash assets on December 10, 20X6, for $276,000.