Gerald and Julia are joining their separate businesses to form a partnership and they agreed to share profits in the manner of 55% for Gerald and 45% for Julia. Property is to be contributed for a total capital of P800,000. The partners agreed to make their capital accounts equal after formation. Gerald Book Value Fair Value Accounts Receivable 60,000 60,000 Inventories 60,000 90,000 Equipment Accounts Payable 100,000 30,000 80,000 30,000 Julia Book Value Fair Value Accounts Receivable Inventories 160,000 180,000 Equipment Accounts Payable 180,000 190,000 20,000 20,000

Gerald and Julia are joining their separate businesses to form a partnership and they agreed to share profits in the manner of 55% for Gerald and 45% for Julia. Property is to be contributed for a total capital of P800,000. The partners agreed to make their capital accounts equal after formation. Gerald Book Value Fair Value Accounts Receivable 60,000 60,000 Inventories 60,000 90,000 Equipment Accounts Payable 100,000 30,000 80,000 30,000 Julia Book Value Fair Value Accounts Receivable Inventories 160,000 180,000 Equipment Accounts Payable 180,000 190,000 20,000 20,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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