Question 2AQUIL and BADIR formed a partnership onJanuary 2, 2022 by contributing theirrespective assets and equities subject toadjustments. On that date, the followingwere provided:CashAccounts ReceivableInventoriesLandBuildingEquipmentIntangible assetsAccounts PayableOther LiabilitiesAQUIL BADIR28,000 62,000200,000 600,000120,000 200,000600,00050,000 35,0002,000500,000200,003,000180,000 250,000350,000 Intangible assetsAccounts PayableOther LiabilitiesCapitalAdditional information:2,0003,000180,000 250,000200,000 350,000620,000 800,0001. Accounts Receivable of P20,000 andP40,000 are uncollectible in AQUIL's andBADIR's respective books.2. Inventories of P6,000 and P7,000 areworthless in AQUIL's and BADIR'Srespective books.3. Intangible assets are to be worthless ineach books.Question 2 What will be the capital=balance of partner AQUIL after theadjustments?

The determination of Capital balance of partner AQUIL after the adjustments is shown hereunder :…

Answered: AQUIL and BADIR formed a partnership on…

AQUIL and BADIR formed a partnership on January 2, 2022 by contributing their respective assets and equities subject to adjustments. On that date, the following were provided:

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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Concept explainers

Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.

Question

Intangible assets
Accounts Payable
Other Liabilities
Capital
Additional information:
2,000
3,000
180,000 250,000
200,000 350,000
620,000 800,000
1. Accounts Receivable of P20,000 and
P40,000 are uncollectible in AQUIL's and
BADIR's respective books.
2. Inventories of P6,000 and P7,000 are
worthless in AQUIL's and BADIR'S
respective books.
3. Intangible assets are to be worthless in
each books.
Question 2 What will be the capital
=
balance of partner AQUIL after the
adjustments?

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Kimble, Sykes, and Gerard open an accounting practice on January 1, 2019, in Chicago, Illinois, to be operated as a partnership. Kimble and Sykes will serve as the senior partners because of their years of experience. To establish the business, Kimble, Sykes, and Gerard contribute cash and other properties valued at $328.000. $240.000, and $152.000, respectively. An articles of partnership agreement is drawn up stipulating the following: ⚫ Personal drawings are allowed annually up to an amount equal to 10 percent of the partner's beginning capital balance for the year. Profits and losses are allocated according to the following plan: 1. Each partner receives an annual salary allowance of $55 per billable hours worked. 2. Interest is credited to the partners' capital accounts at the rate of 12 percent of the beginning capital balance for the year. 3. Kimble and Sykes are eligible for an annual bonus of 10 percent of net income after subtracting the bonus, salary allowance, and interest.…
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