3. Scooby admits Scrappy as a partner in the business. Balance sheet accounts of Scooby on September 30, just before the admission of Scrappy show: P 2,600 12,000 18,000 Cash Accounts receivable Merchandise inventory Accounts payable Scooby, capital Р 6,200 26,400 It is agreed that for purposes of establishing Scooby's interest, the following adjustments shall be made: a. An allowance for doubtful accounts of 2% is to be established. b. Merchandise inventory is to be valued at P20,200. c. Prepaid expenses of P350 and accrued expenses of P400 are to be recognized. Scrappy is to invest sufficient cash to obtain a 1/3 interest in the partnership. How much is Scrappy's investment to the partnership?
3. Scooby admits Scrappy as a partner in the business. Balance sheet accounts of Scooby on September 30, just before the admission of Scrappy show: P 2,600 12,000 18,000 Cash Accounts receivable Merchandise inventory Accounts payable Scooby, capital Р 6,200 26,400 It is agreed that for purposes of establishing Scooby's interest, the following adjustments shall be made: a. An allowance for doubtful accounts of 2% is to be established. b. Merchandise inventory is to be valued at P20,200. c. Prepaid expenses of P350 and accrued expenses of P400 are to be recognized. Scrappy is to invest sufficient cash to obtain a 1/3 interest in the partnership. How much is Scrappy's investment to the partnership?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3. Scooby admits Scrappy as a partner in the business. Balance sheet accounts of Scooby on
September 30, just before the admission of Scrappy show:
P 2,600
12,000
18,000
Cash
Accounts receivable
Merchandise inventory
Accounts payable
Scooby, capital
Р 6,200
26,400
It is agreed that for purposes of establishing Scooby's interest, the following adjustments
shall be made:
a. An allowance for doubtful accounts of 2% is to be established.
b. Merchandise inventory is to be valued at P20,200.
c. Prepaid expenses of P350 and accrued expenses of P400 are to be recognized.
Scrappy is to invest sufficient cash to obtain a 1/3 interest in the partnership. How much is
Scrappy's investment to the partnership?
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