Answered: an, already past due, in the amount of…

an, already past due, in the amount of P10,000. Octillery paid this out of his personal funds aside from his cash contribution abov

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter13: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 50P

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Jane and Kathy are joining their separate business to form a partnership. Cash and non-cash assets are to be contributed for a total capital of P300,000. The non-cash assets are to be contributed and liabilities to be assumed are as follows: Jane Kathy Book Value Fair Value Book Value Fair Value Receivable Inventories Equipment Payable P 22,500 22,500 37,500 11,250 P 22,500 33,750 30,000 11,250 P 60,000 67,500 7,500 P67,500 71,250 7,500 The partner's capital accounts are to be equal after all contributions of assets and assumptions of liabilities. Determine the total assets of the partnership.
4. Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnership's formation: Contributed by Roberts Smith $20,000 $30,000 15,000 40,000 Cash Inventory Building Furniture & Equipment 15,000 The building is subject to a mortgage of $10,000, which the partnership has assumed. The partnership agreement also specifies that profits and losses are to be distributed evenly. What amounts should be recorded as capital for Roberts and Smith at the formation of the partnership? Roberts Smith $35,000 $85,000 $35,000 $75,000 $55,000 $55,000 $60,000 $60,000 а. b. с. d.
James joined a partnership by contributing the following: cash, P20,000;accounts receivable, P4,000; land, P240,000 fair value; and accounts payable, P16,000. What will be the initial amount recorded in James’ capital account? Give the entry to record the investment of James
Partner A and Partner B decided to form a partnership. Partner A invested the following: Cash of P500,000, Land costing P200,000 with an fair value of P600,000; building, costing P1,500,000 with accumulated depreciation of P500,000 but with fair market value of P850,000, and mortgage note payable of P200,000. The mortgage payable is to be assumed by the partnership. Partner B invested cash to give her 30% interest in the partnership. How much cash did Partner B invests?
Mr. A , Mr. B and Mr. C agreed to form a partnership. Mr. A will contribute cash in the amount of P100,000; Mr. B will contribute land which originally cost P 500,000 with a fair Market value of P 1,000 and mortgage payable in the amount of P 200,000; and Mr. C contributed a brand new equipment amounting to P 300,000. Based on the following contributions. The total Assets of the partnership is O P1.600,000 OP1.400.000 O P1.200,000 O P 700.000
Assume the G&L partnership forms with cash contributions of $100,000 each from G and L. The partnership then borrows $800,000 on a nonrecourse loan and purchases a building on leased land for $ 1,000,000. Assume that the building is rented and that annual cash revenues equal cash expenses but depreciation of $50,000 per year results in a $50,000 annual loss. All items of income, loss, and deduction are shared equally. When is the first year that the partnership will record Partnership Minimum Gain ( PMG)? Please don't use any AI. It's strictly prohibited. Help me out asap Thanks
Assume the G&L partnership forms with cash contributions of $100,000 each from G and L. The partnership then borrows $800,000 on a nonrecourse loan and purchases a building on leased land for $1,000,000. Assume that the building is rented and that annual cash revenues equal cash expenses but depreciation of $50,000 per year results in a $50,000 annual loss. All items of income, loss, and deduction are shared equally. When is the first year that the partnership will record Partnership
On May 1, 2022, AA and BB formed a partnership with each contributing the following assets: Partner AA: Cash, P300,000 Machinery and equipment, P250,000 Furniture and fixtures, P100,000 Partner BB: Cash, P700,000 Machinery and equipment, P750,000 Building, P2,250,000 The building is subject to a mortgage loan of P800,000, which will not be assumed by the partnership. What is the capital balance of partner BB upon formation?
2. Hammer and Nail formed a partnership. Hammer contributed equipment with original cost of P370,000 and fair value of P300,000 while Nail contributed cash of P180,000. Hammer and Nail agreed to have a 60:40 interest in the partnership and that their initial capital credits should reflect this fact. A partner's capital account should be increased accordingly by way of additional cash investment. Which of the partners should make an additional investment and by how much? a. Hammer, P20,000 b. Nail, P20,000 c. Hammer, P70,000 d. Nail, P70,000
AL and DRIX decided to form a partnership. AL contributed P200,000 cash, equipment with a historical cost of P250,000 and fair value of P225,000, furniture with a historical cost of P150,000 and a fair value of P75,000 and P400,000 worth of parcel of land with a mortgage of P100,000. The partnership decided to assume the liability. Required: Answer the following 1. What is the capital balance of AL 2. Assuming DRIX will invest cash equivalent to AL’s net investment, how much is the capital balance of DRIX? 3. Assuming DRIX will invest cash equivalent to 20% of total partnership capital, how much is the capital balance of DRIX? 4. Using the assumption in number 3, how much is the total asset of the partnership after the contribution of AL and DRIX?
A & B formed a partnership. A contributed cash and land with a fair value of P60,000 and a book value of P50,000. B contributed P130,000 cash for 65% claim in the partnership's assets. Compute the amount of cash A should contribute.
On January 1, 2022, A and B decided to form a partnership by contributing their respective assets and equities subject to adjustments. Cash Accounts Receivable Building A 50,000 20,000 520,000 B 40,000 10,000 30,000 Computer Equipment An Allowance for Doubtful Accounts of 3% of accounts receivable is set up for each partner, and a mortgage of P30,000 is assumed from building contribution. Compute the adjusted capital account of A after the formation.