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How much is the capital of CABLES Trading upon formation?

How much is the capital of CABLES Trading upon formation?

FINANCIAL ACCOUNTING
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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Q5. Please answer the question correctly with solution ASAP. Thank you.
On May 1, 2022, Carlo has been in a trading business for five years as a sole proprietor. He needed additional capital to fund business expansion so he decided to invite Jamie by investing cash for a one-third interest in the new partnership, CABLES Trading. CABLES Trading would assume the liabilities of Carlo's business. Jamie accepted the invitation and both agreed to revalue assets of Carlo's business as itemized: Accounts Receivable P50,000; Merchandise Inventory P28,000; Office Equipment P22,000; and Land P279,000. Account balances in the books of Carlo were as follows: Account Titles Debit Credit Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Office Equipment Accumulated 15,900 Depreciation Land Accounts Payable 194,000 Carlo, Capital 300,000 How much is the capital of CABLES Trading upon formation? P135,000 60,000 25,000 33,000 260,000 P 4,000
Transcribed Image Text:On May 1, 2022, Carlo has been in a trading business for five years as a sole proprietor. He needed additional capital to fund business expansion so he decided to invite Jamie by investing cash for a one-third interest in the new partnership, CABLES Trading. CABLES Trading would assume the liabilities of Carlo's business. Jamie accepted the invitation and both agreed to revalue assets of Carlo's business as itemized: Accounts Receivable P50,000; Merchandise Inventory P28,000; Office Equipment P22,000; and Land P279,000. Account balances in the books of Carlo were as follows: Account Titles Debit Credit Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Office Equipment Accumulated 15,900 Depreciation Land Accounts Payable 194,000 Carlo, Capital 300,000 How much is the capital of CABLES Trading upon formation? P135,000 60,000 25,000 33,000 260,000 P 4,000
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