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 A part of Claire's cash contribution, P324,000, comes from personal borrowings. Also, 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 5:3:2 ratio, to Claire, Dolly and Ellery, respectively.
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 A part of Claire's cash contribution, P324,000, comes from personal borrowings. Also, 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 5:3:2 ratio, to Claire, Dolly and Ellery, respectively.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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
486,000
109,620
Cash
460,107
231,903
Accounts Receivable
141,000
Property, Plant and Equipment
2,094,390
450,000
A part of Claire's cash contribution, P324,000, comes from personal borrowings. Also, 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 5:3:2 ratio, to Claire, Dolly and Ellery, respectively.
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