Gogola and Paglinawan have just formed a partnership. Gogola contributed cash of P1,260,000 and computer equipment that cost P540,000. The fair value of the computer is P360,000. Gogola has notes payable on the computer of P120,000 to be assumed by the partnership. Gogola is to have 60% capital interest in the partnership. Paglinawan contributed only P900,000. The partners agreed to share profit and loss equally. Gogola should make an additional investment or (withdrawal) of

Gogola and Paglinawan have just formed a partnership. Gogola contributed cash of P1,260,000 and computer equipment that cost P540,000. The fair value of the computer is P360,000. Gogola has notes payable on the computer of P120,000 to be assumed by the partnership. Gogola is to have 60% capital interest in the partnership. Paglinawan contributed only P900,000. The partners agreed to share profit and loss equally. Gogola should make an additional investment or (withdrawal) of

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Hansel and Gretel are partners. Hansel's capital balance is P130,000 and Gretel's is P150,000. They agreed to share equally in profits and losses. Both partners agree to accept a third investor, Mocha, as a new partner with a 25% interest in the partnership. Mocha intends to invest P115,000 in cash. The bonus that is granted to Hansel and Gretel is closest to
Jeon, Kim, and Min are partners with present capital balances of P500,000, P600,000, and P200,000, respectively. The partners share profit and losses according to the following percentages: 60% for Jeon, 20% for Kim, and 20% for Min. Park is to join the partnership upon contributing P600,000 to the partnership in exchange for a 25% interest in capital and a 20% interest in profits and losses. The existing assets of the original partnership are undervalued by P220,000. The original partners will share the balance of profits and losses in proportion to their original percentages. Using the total/full goodwill method, answer the following (answers can be repeated): a. The revaluation of assets will increase/decrease the assets by: b. The total contributed capital is c. The total agreed capital is d. Asset (Goodwill) will be debited/credited by e. After the admission of Park, the total capital of Jeon is f. After the admission of Park, the total capital of Kim is g. After the…
Charlie and Delta formed a partnership. Charlie invested cash worth P85,000 and a machine. On the other hand, Delta contributed cash worth P55,000 and an equipment which has a mortgage of P35.000 which Delta will pay personally The total capital after formation was P350,000. They also further agreed to reflect 55:45 ratio as to their capital balances respectively. No other investment or withdrawal occurred other than mentioned to reflect their capital ratio agreement. How much is the fair value of the machine?
Abner and Bimbo have just formed a partnership, Abner contributed cash of P2,346,000 and office equipment that cost P1,170,000. The equipment had been used in the sole proprietorship and had been 80% depreciated. The current fair value of the equipment is P756,000. An unpaid mortgage loan on the equipment of P252,000 will be assumed by the partnership. Abner is to have a 40% interest in the partnership net assets. Bimbo is to contribute only merchandise with a fair value of P1,890,000. Required: Use Bonus and Goodwill Method in computing the capital balances of Abner and Bimbo.
BRAIN and FREEZE have capital balances of P750,00 and P500,000 and share in partnership profits and losses in the ratio of 3:2 each respectively. On November 30, 20x10, the partners admitted HURTS into the partnership by investing P200,000 cash and a machine to be used by the partnership for a 20% interest. After HURT's admission, BRAIN's capital increased by 10%. What is the fair value of the machine invested by HURT in the partnership?
On June 30, 2015, the balance sheet of Western Marketing, a partnership, is summarized as follows: Sundry assets West, capital 150,000 90,000 60,000 Tern, capital West and Tern share profits and losses at a 60:40 ratio, respectively. They agreed to take in Cuba as a new partner, who purchases 1/8 interest of West and tern for P25,000. What is the amount of Cuba's capital to be taken up in the partnership books if book value method is used? O 12500 O 18750 O 25000 O 31250
Please explain it properly
When EPSILON Ltd. is established, its capital amounts to 120.000€ and partner A has a 70% share and partner B a 30% share. Partner A's share includes ordinary partnership shares, while Partner B's share includes preference partnership shares. For each partnership interest, the partners will pay 30% above its value. The payment by the partners was made in cash. The relevant journal entries are required to be made
A and B entered into a partnership agreement in which A is to have 55% interest in the partnership and 35% in the profits and losses, while B will have 45% interest in the partnership and 65% in the profits and losses. A contributed the following: Cost Fair value Building P235,000 P255,000 Equipment 168,000 156,000 Land 500,000 525,000 The building and the equipment have a mortgage of P50,000 and P35,000 respectively. B is to contribute P150,000 cash and an equipment. The partners agreed that only the building mortgage will be assumed by the partnership. How much is the fair market value of the equipment which B contributed?
Dolfo and Poldo formed a partnership. Dolfo contributed cash of P600,000, desktop computer of P70,000 and printer that cost P30,000. The fair value of computer is 50,000 while the printer has a fair value of P20,000. Dolfo has notes payable on the computer and printer of P10,000 to be assumed by the partnership. Dolfo is to have 60% capital interest in the partnership. Poldo contributed P500,000 only. The partners agreed to share in the partnership profits and losses in the ratio of 2:3 for Dolfo and Poldo respectively. How much is the net investment of Dolfo?
A partnership has the following capital balances: Mahar is going to pay a total of $200,000 directly to these three partners to acquire a 25 percent ownership interest from each. Goodwill is to be recorded. What is Heflin’s capital balance after the transaction? $225,000 $234,000 $312,000 $234,000 $360,000
Karasuma and Irina are partners who have capitals of P6,000 and P4,800 and who share profits in the ratio of 3:2. Koro is admitted as a partner upon investing cash of P5,000, with profits to be shared equally. Assume that Koro is allowed a 40% interest in the firm. 1. What entries would be made in recording the investment if the asset revaluation method is used? 2. What entries would be made if the bonus method is used? 3. Which method will be preferred by Koro? How much will Koro gain by the use of this method?