Byxie and Katey formed a partnership on March 1, 2022 with Byxie investing the following: Inventory - cost of P100,000; current fair value of P150,000 Marketable securities - cost of P50,000; current fair value of P120,000 Equipment - cost of P500,000; book value of P300,000; and market value of P250,000 Land - cost of P400,000; current fair value of P550,000 Notes Payable (secured by equipment) - P100,000 assumed by partnership Katey was required to invest cash half of Byxie's investment. REQUIRED: Give two entries to record the investments of the partners.
Byxie and Katey formed a partnership on March 1, 2022 with Byxie investing the following: Inventory - cost of P100,000; current fair value of P150,000 Marketable securities - cost of P50,000; current fair value of P120,000 Equipment - cost of P500,000; book value of P300,000; and market value of P250,000 Land - cost of P400,000; current fair value of P550,000 Notes Payable (secured by equipment) - P100,000 assumed by partnership Katey was required to invest cash half of Byxie's investment. REQUIRED: Give two entries to record the investments of the partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Byxie and Katey formed a
Inventory - cost of P100,000; current fair value of P150,000
Marketable securities - cost of P50,000; current fair value of P120,000
Equipment - cost of P500,000; book value of P300,000; and market value of P250,000
Land - cost of P400,000; current fair value of P550,000
Notes Payable (secured by equipment) - P100,000 assumed by partnership
Katey was required to invest cash half of Byxie's investment.
REQUIRED: Give two entries to record the investments of the partners.
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