Claire, Dolly and Ellery formed the CDE Partnership on September 1, 2016, with the following assets, measured at book values in their respective records, contributed by each partner: CLAIRE DOLLY ELLERY Cash Accounts Receivable Property, Plant and Equipment |486,000 460,107 231,903 109,620 141,000 2,094,390 450,000 PPE of Claire and Dolly are mortgaged with the bank for P1,458,000 and P108,000, respectively. The partnership is to assume responsibility for these PPE mortgages. The fair value of the accounts receivable contributed by Ellery is P137,000 while the PPE contributed by Dolly at this date is P510,300. The partners have agreed to share interests on a 4:3:3 ratio, to Claire, Dolly and Ellery, respectively. REQUIRED: a. Use the Bonus Method and give the: 1. Table of Agreed Capital and Contributed Capital 2. Journal Entry to record the contribution of the partners. b. Use the Goodwill Method and give the: 1. Table of Agreed Capital and Contributed Capital 2. Journal Entry to record the contribution of the partners.
Claire, Dolly and Ellery formed the CDE Partnership on September 1, 2016, with the following assets, measured at book values in their respective records, contributed by each partner: CLAIRE DOLLY ELLERY Cash Accounts Receivable Property, Plant and Equipment |486,000 460,107 231,903 109,620 141,000 2,094,390 450,000 PPE of Claire and Dolly are mortgaged with the bank for P1,458,000 and P108,000, respectively. The partnership is to assume responsibility for these PPE mortgages. The fair value of the accounts receivable contributed by Ellery is P137,000 while the PPE contributed by Dolly at this date is P510,300. The partners have agreed to share interests on a 4:3:3 ratio, to Claire, Dolly and Ellery, respectively. REQUIRED: a. Use the Bonus Method and give the: 1. Table of Agreed Capital and Contributed Capital 2. Journal Entry to record the contribution of the partners. b. Use the Goodwill Method and give the: 1. Table of Agreed Capital and Contributed Capital 2. Journal Entry to record the contribution of the partners.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 7P: Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset,...
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![Description
Claire, Dolly and Ellery formed the CDE
Partnership on September 1, 2016, with the
following assets, measured at book values in
their respective records, contributed by each
partner:
CLAIRE
DOLLY
ELLERY
Cash
486,000 460,107 231,903
Accounts
Receivable
|109,620
141,000
Property, Plant
and Equipment
2,094,390 450,000
PPE of Claire and Dolly are mortgaged with
the bank for P1,458,000 and P108,000,
respectively. The partnership is to assume
responsibility for these PPE mortgages. The
fair value of the accounts receivable
contributed by Ellery is P137,000 while the
PPE contributed by Dolly at this date is
P510,300. The partners have agreed to share
interests on a 4:3:3 ratio, to Claire, Dolly and
Ellery, respectively.
REQUIRED:
a. Use the Bonus Method and give the:
1. Table of Agreed Capital and Contributed
Capital
2. Journal Entry to record the contribution of
the partners.
b. Use the Goodwill Method and give the:
1. Table of Agreed Capital and Contributed
Capital
2. Journal Entry to record the contribution of
the partners.
NOTES:
1. In making the table, the contributed capital
is the total of the value of the assets less the
liabilities assumed.
2. In using the goodwill method, use the
contribution of Claire to get the implied total
agreed capital.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa08f5446-a613-4baf-9c25-69b271a453f9%2Fc48c06b9-898a-4b91-9a1e-35e961a4e5f1%2Fle2wiaua_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Description
Claire, Dolly and Ellery formed the CDE
Partnership on September 1, 2016, with the
following assets, measured at book values in
their respective records, contributed by each
partner:
CLAIRE
DOLLY
ELLERY
Cash
486,000 460,107 231,903
Accounts
Receivable
|109,620
141,000
Property, Plant
and Equipment
2,094,390 450,000
PPE of Claire and Dolly are mortgaged with
the bank for P1,458,000 and P108,000,
respectively. The partnership is to assume
responsibility for these PPE mortgages. The
fair value of the accounts receivable
contributed by Ellery is P137,000 while the
PPE contributed by Dolly at this date is
P510,300. The partners have agreed to share
interests on a 4:3:3 ratio, to Claire, Dolly and
Ellery, respectively.
REQUIRED:
a. Use the Bonus Method and give the:
1. Table of Agreed Capital and Contributed
Capital
2. Journal Entry to record the contribution of
the partners.
b. Use the Goodwill Method and give the:
1. Table of Agreed Capital and Contributed
Capital
2. Journal Entry to record the contribution of
the partners.
NOTES:
1. In making the table, the contributed capital
is the total of the value of the assets less the
liabilities assumed.
2. In using the goodwill method, use the
contribution of Claire to get the implied total
agreed capital.
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