Chapter 1 S c r ENCINKT 900,000 90,000 Building Equipment Accounts payable Capital 90,000 450,000 336,000 2,100,000 1,460,000 The partners agreed to the following: The recoverable amounts of the partners' respective accounts receivable are P300,000 for Mr. Ann and P760,000 for Ms Buoy. а. b. The inventory contributed by Ms. Buoy includes obsolete items with a recorded cost of P20,000. The land has an attached mortgage of P180,000, which the partnership will assume. d. The equipment contributed by Ms. Buoy has a fair value of P130,000. с. Mr. Ann has an unrecorded accounts payable of P100,000. The partnership assumes the obligation of settling that account. е. How much is the initial capital of Ms. Bouy? а. 1,120,000 b. 1,800,000 c. 1,920,000 d. 2,920,000 20

Chapter 1 S c r ENCINKT 900,000 90,000 Building Equipment Accounts payable Capital 90,000 450,000 336,000 2,100,000 1,460,000 The partners agreed to the following: The recoverable amounts of the partners' respective accounts receivable are P300,000 for Mr. Ann and P760,000 for Ms Buoy. а. b. The inventory contributed by Ms. Buoy includes obsolete items with a recorded cost of P20,000. The land has an attached mortgage of P180,000, which the partnership will assume. d. The equipment contributed by Ms. Buoy has a fair value of P130,000. с. Mr. Ann has an unrecorded accounts payable of P100,000. The partnership assumes the obligation of settling that account. е. How much is the initial capital of Ms. Bouy? а. 1,120,000 b. 1,800,000 c. 1,920,000 d. 2,920,000 20

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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2. The sale of the non-cash assets resulted in a total loss ofA. P70,000b. P60,000c.P65,000 d. P80.000e. answer not given
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Numbers 11-12 (Based on Book Values with Adjustments) On July 1, AA and BB decided to form a partnership. Balance sheet items for AA and BB on July 1 before adjustment are given below: Cash Accounts receivable Inventory Office supplies Equipment Accumulated depreciation Total assets Accounts payable Capital Total liabilities and capital 6,667 withdraw 3,000 invest 8,333 invest AA P 31,000 26,000 32,000 20,000 (9,000) P 100,000 B. AA-81,250 BB-75,000 P 28,000 72,000 P 100.000 C. AA-100,000 BB-75,000 BB P 50,000 20,000 AA and BB agreed to the following adjustments: (a) AA and BB's inventory is to be valued at P31,000 and P22,000, respectively; (b) Accounts receivable of P2,000 in AA's book and P1,000 in BB's books are uncollectible; D. AA 62,000 BB-93,000 24,000 5,000 (c) Accrued salaries of P4,000 for AA and P5,000 for BB are still to be recognized in the books; (d) Unused office supplies of AA amounted to P5,000 while that of BB amounted to P1,500; (e) Prepaid rent of P7,000 and P4,500…
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Admitting New Partner With Bonus L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $9,000. The capital balances of each partner are $74,500 and $103,000, respectively, prior to the revaluation. Question Content Area a. Provide the journal entry for the asset revaluation. For a compound transaction, if an amount box does not require an entry, leave it blank. blank EquipmentL. Bowers, CapitalL. Bowers, DrawingV. Lipscomb, DrawingM. Ortiz, Capital - Select - - Select - CashEquipmentL. Bowers, DrawingV. Lipscomb, CapitalM. Ortiz, Capital - Select - - Select - EquipmentL. Bowers, CapitalV. Lipscomb, CapitalM. Ortiz, CapitalM. Ortiz, Drawing - Select - - Select - Question Content Area b. Provide the journal entry for Ortiz’s admission under the following independent situations: 1. Ortiz purchased a 20%…
3.14 Cue and Peed entered into a partnership on March 1, 200A. They T agreed that Cue, the managing partner was to receive a salary 10 neallowance of P 24,000 per year and a bonus of 10% of the net profit after the salary allowance but before the bonus. The balance is to b e distributed in the ratio of their initial capital. Selected ledger accounts on December 31, 200A prior to adjustments showed the following balances: Salesgns 22ol bns P 300,000 ge gnisda o3,000 ollo) visoo 180,000 1sini s10 48,000 Sales Returns 290sw zunod ts Purchases 1 Operating Expenses bs la01Stni o1o 48,000 200,000 00020,000 1o g 2290x Cue Capital Cue Drawing Peed Capital 0 Peed Drawing Inventories at year-end were bns I 100,000 10,000 as follows: Office supplies, P 810 and merchandise, P 50,000. Prepaid insurance of 0P 1,200 and accrued expenses of P 400 are to be recognized. Depreciation of P 4,000 is to be provided. REQUIRED: Prepare the Statement of Partners ' Equity for the 10- month period ended December…
EXERCISE 4. Journal Entries - Cash, non-cash, and industry contributions. Prepare and upload the journal entries to record contributions of Kim and Krislam into the partnership under the following independent assumptions: 1. Cash contribution amounting to $45,000 each. 2. Kim contributed $35,000 cash and a store equipment with carrying value of $27,000. Krislam contributed $15,000 cash and a delivery vehicle with a fair market value of $195,000. Kim and Krislam agreed that each depreciable asset is overvalued by $4,000. 3. Kim contributed $10,000 cash and furniture and fixtures with carrying value of $32,000. Krislam contributed $5,000 cash and a building with a fair market value of $295,000 and an unpaid mortgage of $27,500. Kim and Krislam agreed that building is undervalued by $9,000. 4. Kim contributed $25,000 cash, a store equipment with fair market value of $47,000, and delivery vehicle with a fair market value of $175,000. Krislam, an industrial partner, was to contribute her…
1. 2. EXERCISE 4. Journal Entries - Cash, non-cash, and industry contributions. Prepare and upload the journal entries to record contributions of Kim and Krislam into the partnership under the following independent assumptions: 3. Page 4. 9 Cash contribution amounting to P45,000 each. Kim contributed P35,000 cash and a store equipment with carrying value of $27,000. Krislam contributed P15,000 cash and a delivery vehicle with a fair market value of P195,000. Kim and Krislam agreed that each depreciable asset is overvalued by $4,000. Kim contributed P10,000 cash and furniture and fixtures with carrying value of P32,000. Krislam contributed P5,000 cash and a building with a fair market value of P295,000 and an unpaid mortgage of P27,500. Kim and Krislam agreed that building is undervalued by P9,000. Kim contributed P25,000 cash, a store equipment with fair market value of P47,000, and delivery vehicle with a fair market value of P175,000. Krislam, an industrial partner, was to contribute…