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Carlo invested the following in the partnership being formed with Jamie: Cash of P60,000; Land of P200,000 with an appraised value of P410,000; Store furniture costing P40,000 less accumulated depreciation of P10,000; Mortgage note payable P15,000 plus accrued interest for a year at 18%. The mortgage note is to be assumed by the partnership together with any unpaid interest incurred on the note. How much will be Carlo’s initial capital on the partnership being formed?

Carlo invested the following in the partnership being formed with Jamie: Cash of P60,000; Land of P200,000 with an appraised value of P410,000; Store furniture costing P40,000 less accumulated depreciation of P10,000; Mortgage note payable P15,000 plus accrued interest for a year at 18%. The mortgage note is to be assumed by the partnership together with any unpaid interest incurred on the note. How much will be Carlo’s initial capital on the partnership being formed?

FINANCIAL ACCOUNTING
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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Carlo invested the following in the partnership being formed with Jamie:

  • Cash of P60,000;
  • Land of P200,000 with an appraised value of P410,000;
  • Store furniture costing P40,000 less accumulated depreciation of P10,000;
  • Mortgage note payable P15,000 plus accrued interest for a year at 18%.

The mortgage note is to be assumed by the partnership together with any unpaid interest incurred on the note.

How much will be Carlo’s initial capital on the partnership being formed?

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