Exercises/Problems- On July 1, 20A, Jufel Tamala and Louie Estrebilla have agreed to form a partnership business engaged in buying and selling of "tuna" fish within the vicinity of General Santos City. Their contributions among others included the following: 12-1 Cash Frozen Tuna Delivery Van Required: Tamala P250,000 180,000 Estrebilla P380,000 950,000 As agreed, Tamala's "frozen tuna" was revalued at P160,000 while Estrebilla's mortgage loan balance of P250,000 for his delivery van was treated as his "personal" obligation from Mitsubishi Gensan branch. 1. Prepare two single journal entries recording their respective contributions. 2. Prepare a Statement of Financial Position as of the date their partnership was formed.
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- On July 1, 20A, Cedric Naranjo and Edman Flores have agreed to form a partnership business engaged in buying and selling of "danggit dried fish" sourced in Daan Bantayan to be sold within the vicinity if Cebu City. Their contributions among others included the following: Naranjo Flores Cash 250,000 380,000 Danggit Dried Fish 180,000 Delivery Van 950,000 As agreed, Naranjo's "danggit dried fish" was revalued at 160,000 while Flores' mortgage loan balance of 250,000 for his delivery van was treated as his personal obligation from Mitsubishi Mabolo branch Required: 1. Prepare two simple journal entries recording their perspective contributions. 2. Prepare a Statement of Financial Position as of the date their partnership was formed.1 1 . NAME: SECTION: Partnerships: Basic Considerations and Formation 465 Problem #3 A Sole Proprietor and an Individual with No Business Form a Partnership SCORE: PROFESSOR: Espanol operated a specialty shop that sold fishing equipment and accessories. Her post-closing trial balance on Dec. 31, 2022 is as follows: Accounts Payable Espanol, Capital Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Equipment Accumulated Depreciation Fish Post-Closing Trial Balance Dec. 31, 2022 Debit P 36,000 150,000 440,000 135,000 P761,000 Credit P 16,000 75,000 30,000 640,000 P761,000 Espanol plans to enter into a partnership with trusted associate, Selisana, effective Jan. 1, 2023. Profits or losses will be shared equally., Espanol is to transfer all assets and liabilities of her shop to the partnership after revaluation. Selisana will invest cash equal to Espanol's investment after revaluation. The agreed values are as follows: accounts receivable (net), P140,000; inventory,…On July 1, 2022, Mr. A and Mr. B agreed to form a partnership business engaged in buying and selling organic rice sourced from South Cotabato to be sold in Davao City. Their contributions included the following: Mr. A Mr. B Cash 250,000.00 380,000.00 Organic rice 180,000.00 Delivery van 1,000,000.00 As agreed, Mr. A's organic rice was revalued at P160,000. The fair value of Mr. B's delivery van is P950,000 on July 1, 2022, and has a mortgage loan balance of P250,000 from the Toyota GenSan branch. Required: 1. Assume the mortgage on the delivery van is treated as Mr. Bs personal obligation: a. Prepare two simple journal entries recording their respective contributions. b. Prepare a Statement of Financial Position as of the date their partnership was formed.
- On July 1, 2022, Mr. A and Mr. B agreed to form a partnership business engaged in buying and selling organic rice sourced from South Cotabato to be sold in Davao City. Their contributions included the following: Mr. A Mr. B Cash 250,000.00 380,000.00 Organic rice 180,000.00 Delivery van 1,000,000.00 As agreed, Mr. A's organic rice was revalued at P160,000. The fair value of Mr. B's delivery van is P950,000 on July 1, 2022, and has a mortgage loan balance of P250,000 from the Toyota GenSan branch. 2. Assume the mortgage on the delivery van is assumed by the partnership: a. Prepare two simple journal entries recording their respective contributions. b. Prepare a Statement of Financial Position as of the date their partnership was formed.2. Psalm and Selah decided to form a partnership on June 30, 2030, Assets contributed by the partners are: Psalm Selah Book Value Fair Value Book Value Fair value Cash P375,000 P375,000 P875,000 P875,000 Merchandise inventory 95,000 125,000 Furniture and fixtures 350,000 312,500 872,500 937,500 Transportation equipment 3,262,500 2,812,500 The transportation equipment is subject to a mortgage loan of P1,125,000, which is to be assumed by the partnership. The partnership agreement provides that Psalm and Selah share profits and losses of 30% and 70% respectively. Assuming that the partners agreed to bring their respective capital in proportion to their profit and loss ratio, using Selah capital as base. How much additional cash is to be invested (withdrawn) by Psalm? A. P(687,500)B. P(987,500)C. P 875,000 D. P 687,500In January 2018, Nick Marasigan and Dems Asacta agreed to produce and sell chocolate candies. Marasigan contributed P2400000 in cash to the business. Asacta contributed the building and equipment, valued at P2200000 and P1400000, respectively. The partnership had profits of P840000 during 2018 but was less successful during 2019, when profit was only P400000.Required:1.Prepare the journal entry to record the investment of both partners in the partnership.2.Determine the share of profit for each partner in 2018 and 2019 under each of the following conditions:a.The partners agreed to share profit equally.b.The partners failed to agree on a profit-sharing arrangement.c.The partners agreed to share profit according to the ratio of their original investment.d.The partners agreed to share profits by allowing interest of 10% on their original investments and dividing the remainder equally.e.The partners agreed to share profits by allowing salaries of P400000 for Marasigan and P280000 for…
- Problem IAriel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel and Beauty have existing business. The balance sheet of the two are shown below together with their agreement prior to formation. Ariel BeautyCash 113 126Accounts Receivables 200 100Inventories 50 50Equipment 80 0Furniture 0 30Prepayments 5 15TOTAL 448 321 Accounts Payable 75 95Capital 373…Tasneem and Nazreen were friends with similar hobbies. they formed a partneship with a written partnership agreement to trade in pastry and related products as Tasnaz’s Pastry. The following were extracted from their accounting records; Balances in the ledger at 30 June 2021 R Capital: Tas 407000 Capital: Naz 363000 Current account: Tas credit balance at 1 July 2020 8052 Current account: Naz: debit balance at 1 July 2020 2640 Drawings : Tas 88000 Drawings : Naz 140000 Profit for the year 438636 Additional Information:The partnership agreement provides for the following that needs to be taken into account:1. Partners are entitled to salaries as follows:• Tas – R8 000 per month,• Naz – R10 000 per month. 2. Interest on capital accounts are allowed at 12% per year on each partners capital on a pro-rata basis. Note the following that on 1 January 2021:• Tas decreased her capital account by R27 000; and• Naz increase her capital account by R17 000. 3. Interest at 10%…The following information is presented for Setlagole Catering, a business in providing luxury catering services to the areas around the Dr Ruth Segomotsi Mompati District Mun Time left 1:59:1 North West province. These are the balances when they commenced a simultaneous liquidation of the partnership: EXTRACT OF BALANCES R Trade payables 53,900 Trade receivables 87,300 Catering equipment (cost) 189,000 Vehicles (at cost) 180,000 Catering equipment (accumulated depreciation) 123,979 Vehicles (accumulated depreciation) 67,500 Building (at cost) 250,000 The following transactions took place as part of the liquidation: 1. Debtors were offered a 5% settlement discount. Only 94% of the debtors settled their balances and the remainder of the debtors book was sold to a debt agency at 65% discount. 2. The creditors were all settled at a settlement discount of 11%. 3. The vehicle and the building were auctioned off for R112 000 and R283 300 respectively 4. The catering equipment was sold to…
- Ariel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel and Beauty have existing business.The balance sheet of the two are shown below together with their agreement prior to formation.ArielBeautyCash113126Accounts Receivables200100Inventories5050Equipment800Furniture030Prepayments515TOTAL448321Accounts Payable7595Capital373226TOTAL448321Partners' agreements:Receivables are 97% collectibleAriel's inventories fair values is at P49 while P20 of Beauty's Inventories were damaged and are only 30% recoverable.The equipment is overdepreciated by P5 and the furniture's value will decrease by P4.P3 of Ariel’s prepayments were already exhausted while Beauty has unrecorded liability of P3.Cindy will contribute sufficient cash to give her 20% interest1. How much capital will be credited to Ariel?2. How much capital will be credited to Beauty?3. How much capital will be credited to Cindy?4. How much is the total assets of the newly-formed partnership?Ariel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel and Beauty have existing business.The balance sheet of the two are shown below together with their agreement prior to formation.ArielBeautyCash113126Accounts Receivables200100Inventories5050Equipment800Furniture030Prepayments515TOTAL448321Accounts Payable7595Capital373226TOTAL448321Partners' agreements:Receivables are 97% collectibleAriel's inventories fair values is at P49 while P20 of Beauty's Inventories were damaged and are only 30% recoverable.The equipment is overdepreciated by P5 and the furniture's value will decrease by P4.P3 of Ariel’s prepayments were already exhausted while Beauty has unrecorded liability of P3.Cindy will contribute sufficient cash to give her 20% interest1. How much capital will be credited to Ariel?ibution Name: Program-Year-Section Multiple Choices 1 Date Professor: Score Vim Tak and Gu are partners in the KIMTAKGU partnership Tak, the general purely industrial partner. The partnership operations commenced on July 1, 20x1. From the period July 1 to end of the calendar year accounting period December 31, 20sl: the partnership incurred a loss of P30,000. During the calendar year 20x2, the business earned a profit of P240,000. So the total profit for the last two calendar tter of ame as year was only P210,000. er who profi Case 1. In the Articles of Partnership, it was agreed that the partners would share in profits equally. artners should 1. How much is the share of Kim from the loss during 20x1? a. P 30,000 b. P 15,000 c. P 10,000 d. Not given ensive 2. How much is the share of Tak from the loss during 20x1? a. P 30,000 b. P 15,000 c. P 10,000 d. Not given ling to fits or e and 3. How much is the share of Gu from the loss during 20x1? a. P 30,000 b. P 15,000 c. P 10,000 d. Not…