A business owned by Mel Madrigal was short of cash and she decided to form a partnership with Gel Panganiban, who was able to contribute cash twice (2x) the interest of Mel in the new partnership. The assets contributed by Mel appeared as follows in the balance sheet of her business: Cash, P4,500; Accounts Receivable P94,500; Allowance for doubtful accounts of P3,000; Inventory P210,000; Store equipment P75,000 with an accumulated depreciation of P7,500. Mel and Gel agreed that the allowance for doubtful accounts was inadequate and should be P5,000. They also agreed that the fair value for the inventory is P230,000 and P60,000 for the store equipment. The cash contributed by Gel into the partnership was

A business owned by Mel Madrigal was short of cash and she decided to form a partnership with Gel Panganiban, who was able to contribute cash twice (2x) the interest of Mel in the new partnership. The assets contributed by Mel appeared as follows in the balance sheet of her business: Cash, P4,500; Accounts Receivable P94,500; Allowance for doubtful accounts of P3,000; Inventory P210,000; Store equipment P75,000 with an accumulated depreciation of P7,500. Mel and Gel agreed that the allowance for doubtful accounts was inadequate and should be P5,000. They also agreed that the fair value for the inventory is P230,000 and P60,000 for the store equipment. The cash contributed by Gel into the partnership was

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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Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as on March 31, 2021 is as follows. Liabilities Amount (RO) Assets Amount (RO) Creditors 210000 Cash 17500 Bills Payable 70000 Debtors 245000 General Reserve 140000 Stock 105000 0 Plant 280000 Buildings Capital: 87500 Ahmed 350000 Wahid 140000 Profit & Loss Ac 35000 Bank Overdraft 210000 Equipment 210000 Total 1050000 Total 1050000 On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits on the following terms: a) Building is revalued at 420000 b) Stock is revalued at 75250 c) Goodwill is raised at 140000 d) Provision for bad debts is to be made at 5% e) Khalid has to bring in a Capital 175000 f) Khalid was unable to bring the amount of goodwill Pass Journal Entries and Prepare Revaluation Account, Capital Accounts and the Balance Sheet of the reconstituted firm.
A business owned by Mel Madrigal was short of cash and she decided to form a partnership with Gel Panganiban, who was able to contribute cash twice (2x) the interest of Mel in the new partnership. The assets contributed by Mel appeared as follows in the balance sheet of her business: Cash, P4,500; Accounts Receivable P94,500; Allowance for doubtful accounts of P3,000; Inventory P210,000; Store equipment P75,000 with an accumulated depreciation of P7,500. Mel and Gel agreed that the allowance for doubtful accounts was inadequate and should be P5,000. They also agreed that the fair value for the inventory is P230,000 and P60,000 for the store equipment. What is the cash contributed by Gel into the partnership was ? what is the amount?
On April 1, 2022, Guy Comeau and Amelie Lavoi formed a partnership in Ontario. Comeau Lavoi Contribution $304,000 cash $202,000 land $144,900 building Profit sharing $184,800 salary allowance 5% of original capital investments 5% of original capital investments 40% of remaining 60% of remaining Cash withdrawal March 20, 2023 $129,800 Net Income during the year was $509,600 and was in the Income Summary account.On April 1, 2023 Travis Roberts invested $139,400 and was admitted to the partnership for a 20% interest in equity.Required:1. Prepare journal entries for the following dates.a. April 1, 2022
1. How much cash is to be distributed to the partners? 2. How much is to be distributed to the partners if they share profits at a ratio of 3:6:1 respectively?
Hi, please choose the correct letter of answer. (check the picture)
On June 1, 2022 Bedu, Budi, and Bobi were three friends who wanted to form a new firm which would be named as 3B. Bedu would deposit Cash $2,250, Budi would give Equipment $1,150, and Bobi would give Vehicle $3,350. The correct record for this transaction is Select one: O a. Equipment $1,150 on Credit b. Cash $2,250 on Credit O c. Capital of Bedu $1,150 on Credit O d. Capital of Bobi $3,350 on Credit
Park & Company was recently formed with a $6,400 investment in the company by stockholders in exchange for common stock. The company then borrowed $3,400 from a local bank, purchased $1,140 of supplies on account, and also purchased $6,400 of equipment by paying $2,140 in cash and signing a promissory note for the balance. Based on these transactions, the company's total assets are: Multiple Choice $9,800. $15,200. $12,800. $11,940.
RAMI has owned and operated a proprietorship for several years. On January 1, 2018, he decides to terminate this business and become a partner in the firm of ASMA and RAMI. ✓ RAMI's investment in the partnership consists of HK$ 140,000 in CASH, and the following assets of the proprietorship: ✔ ACCOUNTS RECEIVABLE HK$130,000 less allowance for doubtful accounts of HK$20,000, ✓ and EQUIPMENT HK$200,000 less accumulated depreciation of HK$45,000. It is agreed that the allowance for doubtful accounts should be HK$28, 000 for the partnership. The fair value of the equipment is HK$175, 500. ASMA brings with her $200,000 Book value in CASH, $ 280,000 Fair value. on Dec. 31, 2018, the net income was $100,000 and the income ratios are RAMI 70%, ASMA 30%. Prepare the journal entry to record the division of the net income. Instructions Journalize RAMI's admission to the firm of ASMA and RAMI.
Accounting A, B and C had capital balance of : A,$150,000; B, 120,000 and C, 200,000, profit sharing ratio: 1:2:3. A decides to retire. A is paid 180,000 and goodwill of all partners is recorded (Problem 5 related) what will be the balance in the Capital Account of B after A’s retirement? (Problem 5 related) what will be the balance in the Capital Account of C after A’s retirement? (Problem 5 related) true or false in the journal entry of A’s retirement, the goodwill account will be debited with $ 30,000.
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1. Using the problem above, how much is the cash investment of PA RIN? 2. Using the same problem, how much is the total assets?