is a PNB note of P1, 200,000 which will be assumed by the partnership. Give two journal entries to record the investments of the partner.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Andy and Amy agree to form a partnership with Andy investing the following: Land (with mortgage note)
Cost - P1,500,000 Market Value - P3,500,000 Building Cost - P5,000,000 Market Value - P2,500,000
Accumulated Depreciation Cost - P1,500,000 Amy will invest cash equal to half of Andy's investment. There
is a PNB note of P1, 200, 000 which will be assumed by the partnership. Give two journal entries to record
the investments of the partner.
Transcribed Image Text:Andy and Amy agree to form a partnership with Andy investing the following: Land (with mortgage note) Cost - P1,500,000 Market Value - P3,500,000 Building Cost - P5,000,000 Market Value - P2,500,000 Accumulated Depreciation Cost - P1,500,000 Amy will invest cash equal to half of Andy's investment. There is a PNB note of P1, 200, 000 which will be assumed by the partnership. Give two journal entries to record the investments of the partner.
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