By mutual agreement, the non-cash assets of P160,000 were to be adjusted to their market value of P216,000 at December 31, 2014. It was agreed that the partnership wo pay Sianosa P16,200 cash for her partnership's interest, including, her loan which is to repaid in full. Required: Prepare adjusting entry to reflect in the book the revaluation of assets. 2. Journal Entry to retire Sianosa from the partnership. 1.
By mutual agreement, the non-cash assets of P160,000 were to be adjusted to their market value of P216,000 at December 31, 2014. It was agreed that the partnership wo pay Sianosa P16,200 cash for her partnership's interest, including, her loan which is to repaid in full. Required: Prepare adjusting entry to reflect in the book the revaluation of assets. 2. Journal Entry to retire Sianosa from the partnership. 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:By mutual agreement, the non-cash assets of P160,000 were to be adjusted to their fair
market value of P216,000 at December 31, 2014. It was agreed that the partnership would
pay Sianosa P16,200 cash for her partnership's interest, including, her loan which is to be
repaid in full.
Required:
1. Prepare adjusting entry to reflect in the book the revaluation of assets.
2. Journal Entry to retire Sianosa from the partnership.
Transcribed Image Text:4-6
Christy Sianosa, Josephine Rosete and Lynn Facturan are partners who shared profit and loss
of 2:2:4, The post-closing'trial balance was presented below before Sianosa has decided to
retire from the partnership:
Debit
Credit
Cash
P 20,000
Accounts Receivable
35,000
Furniture & Fixtures
50,000
P 9,000
C. Sianosa, Loan
C. Sianosa, Capital
J. Rosete, Capital
L. Facturan, Capital
Tota!
42,000
39,000
90,000
P180,000
P180.000
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