Partner’s Original Investment Problem #1Partner's Original InvestmentFroilan Labausa contributed land, inventory, and P280,000 cash to a partnership. Theland has a book value of P650,000 and a market value of P1,350,000. The inventory hasa book value of P600,000 and a market value of P510,000. The partnership alsoassumed a P350,000 note payable owed by Labausa that was used to purchase the land.Rosalie Balhag agreed to put up cash equivalent to Labausa's net investment.Required:Prepare the journal entry to record Labausa's and Balhag's investment in thepartnership.

Figinal Investment usa contributed land, inventory, and P280,000 c pok value of P650,000 and a market value of P1,3 e of P600,000 and a market value of P510,0 350,000 note payable owed by Labausa that was ag agreed to put up çash eguivalent to Labausa's

Figinal Investment usa contributed land, inventory, and P280,000 c pok value of P650,000 and a market value of P1,3 e of P600,000 and a market value of P510,0 350,000 note payable owed by Labausa that was ag agreed to put up çash eguivalent to Labausa's

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 3PEA

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Problem #1 Partner's Original Investment Froilan Labausa contributed land, inventory, and P280,000 cash to a partnership. The land has a book value of P650,000 and a market value of P1,350,000. The inventory has a book value of P600,000 and a market value of P510,000. The partnership also assumed a P350,000 note payable owed by Labausa that was used to purchase the land. Rosalie Balhag agreed to put up cash equivalent to Labausa's net investment. Required: Prepare the journal entry to record Labausa's and Balhag's investment in the partnership.
Problem #1. Partner'Original Investment Froilan Labausa contributed land, inventory, and P280,000 cash to partnership.The land has a book value of P650,000 and a market value P1,350,000.The inventory has a book value of P600,000 and a market value of P510,000.The partnership also assumed a P350,000 a note payable owed by Labausa that was used to purchase the land.Rosalie Balhag to put up cash equivalent to Labausa's net investment. Required: Prepare a journal entry to report Labausa's and Balhag's investment in the partnership.
A and B enter into a partnership agreement contributing their respective business' assets at fair market values: Cash Accounts Receivable Machinery and Equipment Land A 60,000 200,000 120,000 B 200,000 430,000 Additional information: An Allowance for Doubtful Accounts of 2% of accounts receivable is to be set up; . The land is subject to a mortgage loan of P24,000 which the partnership will assume. The partnership agreement states that A and B share profits and losses, 40% and 60%, respectively, and partners agreed to bring their capital balances in proportion to the profit and loss ratio. Compute the amount of bonus that should be given to one partner.
PARTNERSHIP FORMATION
Numbers 1-4 (Investment Method Vs. Bonus Method) Thor and Loki formed a partnership and contributed the following assets with their respective fair values: Loki Cash Land Building Equipment B. 420,000 C. 300,000 D. 432,000 Thor P 180,000 Per partnership agreement, the equipment is to be valued at P120,000. Loki's land and building is subject to a P100,000 real estate mortgage which is assumed by the partnership. The mortgage has P10,000 interest accrued which is to be assumed by Loki. The fair value of the land and building is agreed to be equal to their respective book values. 100,000 1. How much is the final capital credit to Thor? A. 288,000 B. 420,000 C. 300,000 D. 432,000 2. How much is the final capital credit to Loki? A. 288,000 P220,000 300,000 Assuming instead that Thor and Lokd decided to divide capital in the ratio of 40:60, respectively and uses the bonus method, answer the following: B. 420,000 C. 300,000 D. 432,000 3. How much is the final capital credit to Thor? A.…
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A AND B FORMED A PARTNERSHIP A B CASH 200K ACCOUNTS RECEIVABLE 100K INVENTORY 160K LAND 100K BUILDING 240K TOTAL 460K 340K Additional information:  Included in accounts receivable is an account amounting to ₱40,000 which is deemed uncollectible.  The inventory has an estimated selling price of ₱200,000 and estimated costs to sell of ₱20,000.  An unpaid mortgage of ₱20,000 on the land is assumed by the partnership.  The building is under-depreciated by ₱50,000.  The building also has an unpaid mortgage amounting to ₱30,000, but the mortgage is not assumed by the partnership. B agreed to settle the mortgage using his personal funds.  The note payable is stated at face amount. A proper valuation requires the recognition of a ₱30,000 discount on note payable.  A and B shall share in profits and losses 60% and 40%, respectively. Requirements: a. Compute for the adjusted balances in the partners' capital accounts. b. Assume that a partner's capital shall be increased…
Problem #12 Admission by Investment of Assets Magdaraog and Mercado are partners in Magdaraog and Mercado Partnership with capital balances of P550,000 and P350,000, respectively; they share income and loss in the ratio 1:3, respectively. The partners are considering the admission of San Pedro. Required: Prepare the entries to record the admission of San Pedro under each of the following independent situations: 1. San Pedro invested P100,000 cash in the partnership for a one-tenth interest. The net assets of the partnership are fairly valued. 2. San Pedro invested P140,000 cash in the partnership for a one-eight interest. Assets of the partnership are fairly valued except for equipment, which is undervalued by P80,000. Net assets of the partnership are to be revalued and San Pedro is to be admitted. 3. San Pedro is to receive a one-tenth interest in the partnership upon investing P180,000 cash. Net assets of the partnership are fairly valued. San Pedro is to be admitted using the bonus…
On March 1, 20x4, CC and FF formed a partnership with each contributing the following assets: CC FF Cash... P 30,000 P70,000 Machinery. 25,000 75,000 Building.. 225,000 ******* Furniture and fixtures... 10,000 The building is subject to a mortgage loan of P90,000, which is to be assumed by the partnership agreement provides that CC and FF share profits and losses 30 percent and 70 percent, respectively. On March 1, 20x4, the capital account of FF would showa balance of:
Problem #2 Admission by Purchase of Interest and Investment of Assets The capital accounts of Loida Cardenas and Christian San Jose have balances of P150,000 and P110,000, respectively. Daria Labalan and Helen Magada are to be admitted to the partnership. Labalan buys one- fifth of Cardenas'interest for P35,000 and one-fourth of San Jose's interest for P25,000. Magada contributes P70,000 cash to the partnership, for which she is to receive ownership equity of P70,000. Required: 1. Journalize the entries to record the admission of Labalan and Magada. 2. What are the capital balances of each partner after the admission of the new partners?
ACTIVITY • On March 1, 2021, A and B formed partnership with each contributing the following assets: The building is subject to mortgage loan of P800,000 which is to be assumed by the partnership agreement provides that A and B share profits and losses 30% and 70%, respectively. On March 1, 2021 the balance of A and B capital account should be: A в Cash 300.000 700.000 Machinery and equipment 250,000 Building Furniture and fixture 750,000 2.250.000 100,000
PROBLEM 1 Melvin Tan Jr. and Edgar Esparaguera are partners who have capital balances and profit and loss ratio to be shared as follows: Capital Balances P350,000 P400,000 P/L Ratio 3/5 M. Tan Jr. 2/15 E. Esparaguera Mr. Wilfredo Carreon was admitted in the partnership by buying 2 of the interest of Esparaguera for P300,000. Required: Prepare a journal entry to record the admission of Mr. Carreon in the partnership.