Journal Entries: Partnership Formation Art, Bart and Cath formed a partnership by contributing 40%, 30% and 30% of the total agreed capital. Problem 3-7 The total cash contribution amounted to P50,000, contributed by Art and Bart. Noncash assets were contributed by Bart and Cath, and the corresponding liability of P5,000 and P10,000 of Bart and Cath were assumed by the partnership. Right after the formation, the partnership's basic accounting equation is P115,000 assets, P15,000 liabilities, and P100,000 capital. Required: Prepare the journal entries to record the contribution of 1. Art 2. Bart 3. Cath
Journal Entries: Partnership Formation Art, Bart and Cath formed a partnership by contributing 40%, 30% and 30% of the total agreed capital. Problem 3-7 The total cash contribution amounted to P50,000, contributed by Art and Bart. Noncash assets were contributed by Bart and Cath, and the corresponding liability of P5,000 and P10,000 of Bart and Cath were assumed by the partnership. Right after the formation, the partnership's basic accounting equation is P115,000 assets, P15,000 liabilities, and P100,000 capital. Required: Prepare the journal entries to record the contribution of 1. Art 2. Bart 3. Cath
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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