Problem 2At April 30, partnership capital of EASCY ANG BM 99.s Company are Mr. Easy P 52,000, Mr. Ang,P 48,000 and Mr. BM 99.2 P 18,000. The income sharing ratios are 5:4:1, respectively. On May1, the EASY ANG BM 99.2 Company is formed by admitting Mr. PAPASA AKO to the firm as apartner.Instructionsa. Journalize the admission of Mr. PAPASA AKO under each of the following independentassumptions.1, Mr. PAPASA AKO purchase 50% of Mr. BM 99.2's ownership interest by paying him P 16,000in cash.a. Mr. PAPASA AKO purchase 33 1/3% of Mr. Ang's ownership interest by paying him P15,000 in cashb. Mr. PAPASA AKO invest P 62,000 ofr a 30% ownership interest, and bonuses are givento the old partners.c. Mr.PAPASA AKO invest P 42,000 for a 30% ownership interest, which includes a bonusto the new partner.2. Mr. Ang's capital balance is P 32,000 after admitting Mr. PAPASA AKO to the partnership byinvestment. IF Mr. Ang's ownership interest is 20% of total partnership capital, what were (1)Mr. PAPASA AKO cash investment and (2) the bonus to the new partner?

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At April 30, partnership capital of EASCY ANG BM 99.s Company are Mr. Easy P 52,000, Mr. Ang, P 48,000 and Mr. BM 99.2 P 18,000. The income sharing ratios are 5:4:1, respectively. On May 1, the EASY ANG BM 99.2 Company is formed by admitting Mr. PAPASA AKO to the firm as a partner. Instructions a. Journalize the admission of Mr. PAPASA AKO under each of the following independent assumptions. 1, Mr. PAPASA AKO purchase 50% of Mr. BM 99.2's ownership interest by paying him P 16,000

At April 30, partnership capital of EASCY ANG BM 99.s Company are Mr. Easy P 52,000, Mr. Ang, P 48,000 and Mr. BM 99.2 P 18,000. The income sharing ratios are 5:4:1, respectively. On May 1, the EASY ANG BM 99.2 Company is formed by admitting Mr. PAPASA AKO to the firm as a partner. Instructions a. Journalize the admission of Mr. PAPASA AKO under each of the following independent assumptions. 1, Mr. PAPASA AKO purchase 50% of Mr. BM 99.2's ownership interest by paying him P 16,000

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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