Calaguas and Dela Cruz formed a partnership and invested the following assets ane Two Sole Proprietors Form a Partnership liabilities: Fair Market Value Carrying Value Calaguas: Cash P300,000 450,000 P300,000 280,000 Land Dela Cruz: Cash 100,000 600,000 (400,000) 100,000 Building Mortgage Payable 520,000 (400,000) The partners will share profits and losses equally. Required: Prepare the opening journal entry in the books of the partnership.
Calaguas and Dela Cruz formed a partnership and invested the following assets ane Two Sole Proprietors Form a Partnership liabilities: Fair Market Value Carrying Value Calaguas: Cash P300,000 450,000 P300,000 280,000 Land Dela Cruz: Cash 100,000 600,000 (400,000) 100,000 Building Mortgage Payable 520,000 (400,000) The partners will share profits and losses equally. Required: Prepare the opening journal entry in the books of the partnership.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 2BD
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Question
![Calaguas and Dela Cruz formed a partnership and invested the following assets and
Two Sole Proprietors Form a Partnership
liabilities:
Fair Market Value
Carrying Value
Calaguas:
Cash
P300,000
P300,000
Land
- 450,000
280,000
Dela Cruz:
Cash
100,000
Building
Mortgage Payable
100,000
520,000
(400,000)
600,000
(400,000)
The partners will share profits and losses equally.
Required:
Prepare the opening journal entry in the books of the partnership.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fde256c89-3002-4384-be9e-ef26959fa186%2F97d311c8-0b42-40c1-9bca-3a01bbf3095a%2Fw5s2zk5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Calaguas and Dela Cruz formed a partnership and invested the following assets and
Two Sole Proprietors Form a Partnership
liabilities:
Fair Market Value
Carrying Value
Calaguas:
Cash
P300,000
P300,000
Land
- 450,000
280,000
Dela Cruz:
Cash
100,000
Building
Mortgage Payable
100,000
520,000
(400,000)
600,000
(400,000)
The partners will share profits and losses equally.
Required:
Prepare the opening journal entry in the books of the partnership.
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