FINANCIAL ACCOUNTING AND REPORTING LEARNING MODULES 12. Qand R formed a partnership. Q contributed cash of P500,000 while R contributed land with a carrying amount of P400,000 and a fair value of P800,000. The land has an unpaid mortgage of P200,000 which is assumed by the partnership. How much is the correct valuation of R's capital immediately after the partnership formation? a. P400,000 b. P500,000 . P600,000 d. P800,000 11. Under the bonus method, the asset contribution of the partner receiving a bonus is debited at a. fair value b. an increased amount with a corresponding decrease to the other partner's asset contributions c. a decreased amount with a corresponding increase to the other partner's asset contributions d. borc, depending on which partner is receiving the bonus 13. On July 1, a partnership was formed by Wand 14. Tingga contributes equipment to a B. W contributed the cash. B previously a sole proprietor, contributed property other than cash including realty subject to a mortgage which was assumed by the partnership. B's partnership that she purchased 2 years ago for P10,000. The current book value is P7,500 and the market value is P9,000. At what value should the partnership record the
FINANCIAL ACCOUNTING AND REPORTING LEARNING MODULES 12. Qand R formed a partnership. Q contributed cash of P500,000 while R contributed land with a carrying amount of P400,000 and a fair value of P800,000. The land has an unpaid mortgage of P200,000 which is assumed by the partnership. How much is the correct valuation of R's capital immediately after the partnership formation? a. P400,000 b. P500,000 . P600,000 d. P800,000 11. Under the bonus method, the asset contribution of the partner receiving a bonus is debited at a. fair value b. an increased amount with a corresponding decrease to the other partner's asset contributions c. a decreased amount with a corresponding increase to the other partner's asset contributions d. borc, depending on which partner is receiving the bonus 13. On July 1, a partnership was formed by Wand 14. Tingga contributes equipment to a B. W contributed the cash. B previously a sole proprietor, contributed property other than cash including realty subject to a mortgage which was assumed by the partnership. B's partnership that she purchased 2 years ago for P10,000. The current book value is P7,500 and the market value is P9,000. At what value should the partnership record the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![FINANCIAL ACCOUNTING AND REPORTING
LEARNING MODULES
11. Under the bonus method, the asset
contribution of the partner receiving a bonus
is debited at
a. fair value
b. an increased amount with a corresponding
decrease to the other partner's asset
12. Qand R formed a partnership. Q contributed
cash of P500,000 while R contributed land
with a carrying amount of P400,000 and a
fair value of P800,000. The land has an
unpaid mortgage of P200,000 which is
assumed by the partnership. How much is the
correct valuation of R's capital immediately
after the partnership formation?
a. P400,000
b. P500,000
C. P600,000
d. P800,000
contributions
c. a decreased amount with a corresponding
increase to the other partner's asset
contributions
d. bor c, depending on which partner is
receiving the bonus
13. On July 1, a partnership was formed by Wand 14. Tingga contributes equipment to a
B. W contributed the cash. B previously a sole
proprietor, contributed property other than
cash including realty subject to a mortgage
which was assumed by the partnership. B's
capital account on July 1, should be recorded
partnership that she purchased 2 years ago
for P10,000. The current book value is P7,500
and the market value is Pg,000. At what
value should the partnership record the
equipment?
a. Pi0,000
ь. Р9,000
. P7,500
d. P3,500
at
a. B's book value of the property less the
mortgage payable on July 1
b. the fair value of the property less the
mortgage payable on July 1
c. the fair value of the property on July 1
d. B's book value of the property on July 1
15. Any assets invested by a particular partner in
a partnership
a. do not become a partnership asset but
instead, remain with the partner
b. can be used only by the investing partner
c. become the property of all partners](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4975575b-1e6f-40fb-bc60-a8a3ac5a7998%2Fc71717a0-42b2-4154-83de-0fa1abe065c2%2Fygv22b6i_processed.gif&w=3840&q=75)
Transcribed Image Text:FINANCIAL ACCOUNTING AND REPORTING
LEARNING MODULES
11. Under the bonus method, the asset
contribution of the partner receiving a bonus
is debited at
a. fair value
b. an increased amount with a corresponding
decrease to the other partner's asset
12. Qand R formed a partnership. Q contributed
cash of P500,000 while R contributed land
with a carrying amount of P400,000 and a
fair value of P800,000. The land has an
unpaid mortgage of P200,000 which is
assumed by the partnership. How much is the
correct valuation of R's capital immediately
after the partnership formation?
a. P400,000
b. P500,000
C. P600,000
d. P800,000
contributions
c. a decreased amount with a corresponding
increase to the other partner's asset
contributions
d. bor c, depending on which partner is
receiving the bonus
13. On July 1, a partnership was formed by Wand 14. Tingga contributes equipment to a
B. W contributed the cash. B previously a sole
proprietor, contributed property other than
cash including realty subject to a mortgage
which was assumed by the partnership. B's
capital account on July 1, should be recorded
partnership that she purchased 2 years ago
for P10,000. The current book value is P7,500
and the market value is Pg,000. At what
value should the partnership record the
equipment?
a. Pi0,000
ь. Р9,000
. P7,500
d. P3,500
at
a. B's book value of the property less the
mortgage payable on July 1
b. the fair value of the property less the
mortgage payable on July 1
c. the fair value of the property on July 1
d. B's book value of the property on July 1
15. Any assets invested by a particular partner in
a partnership
a. do not become a partnership asset but
instead, remain with the partner
b. can be used only by the investing partner
c. become the property of all partners
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education