Give the entry to record the investment of Alonzo into the partnership under each of thefollowing independent assumptions:a.Cash of P400,000.b.Accounts receivable of P500,000 with, an allowance for uncollectible accounts ofP50,000.Inventories that cost P300,000 using the moving average method accepted by thepartnership at its FIFO value of 80% of average cost.c.d.Equipment that cost P900,000 with a book value of P300,000 after four years of usewithout salvage value. The equipment should have been depreciated over a 10-yearuseful life.Cash and Net Asset Contributions)Aquino and Asuncion have decided to form a partnership. Aquino invests the assetspresented below at their agreed valuation, and also transfers his liabilities to the new firm.LedgerBalancesP450,000180,00015,000300,000180,00030,000105,00090,000AgreedValuationP 450,000180,00010,000270,000125,000CashAccounts ReceivableAllowance for Uncollectible AccountsMerchandise InventoryEquipmentAccumulated DepreciationAccounts PayableNotes Payable105,00090,000Asuncion agrees to invest cash for a one-third interest in the firm.Instructions:1. Prepare the entries to record the investments of Aquino and Asuncion in thepartnership's new set of books.2. Prepare the entries to adjust and close the balances of accounts in the books of Aquino 1(An Individual and a Previous Sole Proprictor)Amores admits Andrada to a partnership interest in his business. Accounts in the ledger ofAmores on January 1, 2014, before the admission Andrade, show the following:DebitCreditCashP 208,000Accounts ReceivableMerchandise InventoryAccounts PayableAmores, Capital460,0001,440,000496,0001,612,000It is agreed that for the purpose of establishing the interest of Amores. the followingadjustments shall be made:a.An allowance for uncollectible accounts of P25,000 is to be established.b.The merchandise is to be valued at PI,600,000.Prepaid expenses of P72,000 and unrecorded liability of Pl02,000 are to berecognized.c.Andrade is to invest sufficient cash for an equal interest in the partnership.Instructions:Assuming the new partnership will use the books of Amores, give the entries toadjust the account balances of Amores and to record the investment of Andrade.1.Assuming the new partnership will open new set of books, give the entries to recordthe investment of Amores and Andrade.2.3.Prepare a statement of financial position for the new partnership.(Cash and Non-cash Contributions; Bonus)Aguirre and Aranas have decided to form a, partnership. Aguirre contributes cashr ofPI,000,000 and Aranas contributes land with a fair market value of P800,000 and abuilding with a fair market value of P1,900,000. Aranas purchased the land and buildingfive years ago for P750,000. Aranas' book value of the land is P175,000 and the bookvalue of the building is P600,000. The P1,500,000 mortgage on the land and building is tobe assumed by the partnership. The partners agree to share profits and losses in the ratio of3:2, respectively.Instructions: Prepare the journat entries to record the formation of the partnership undercach of the following independent assumptions:1.Each partner is credited for the full amount of net assets invested.2.Each partner initially is to have equal interest in partnership capital.

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Give the entry to record the investment of Alonzo into the partnership under each of the following independent assumptions: a. Cash of P400,000. Accounts receivable of P500,000 with, an allowance for uncollectible accounts of P50,000. b. Inventories that cost P300,000 using the moving average method accepted by the partnership at its FIFO value of 80% of average cost. Equipment that cost P900,000 with a book value of P300,000 after four years of use without salvage value. The equipment should have been depreciated over a 10-year useful life. d. Cash and Net Asset Contributions) Aquino and Asuncion have decided to form a partnership. Aquino invests the assets presented below at their agreed valuation, and also transfers his liabilities to the new firm. Cash Accounts Receivable Allowance for Uncollectible Accounts Merchandise Inventory Equipment Accumulated Depreciation Accounts Payable Notes Payable Ledger Balances P450,000 180,000 15,000 300,000 180,000 30,000 105,000 90,000 Agreed Valuation P 450,000 180,000 10,000 270,000 125,000 105,000 90,000 Asuncion agrees to invest cash for a one-third interest in the firm. Instructions: 1. Prepare the entries to record the investments of Aquino and Asuncion in the partnership's new set of books. 2. Prepare the entries to adjust and close the balances of accounts in the books of Aquino.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q