On January 1, 20x1, Mr. A and Ms. B agreed to form a partnership contributing their respective assets and equities subject to adjustments. On that date, the following were provided: Mr. A 28,000 200,000 120,000 600,000 Ms. B 62,000 600,000 200,000 Cash Accounts receivable Inventories Land Building Furniture & fixtures Intangible assets Accounts payable Other liabilities 50,000 2,000 180,000 200,000 620,000 500,000 35,000 3,000 250,000 350,000 800,000 Capital The following adjustments were agreed upon: a. Accounts receivable of P20,000 and P40,000 are uncollectible in A's and B's respective books. b. Inventories of P6,000 and P7,000 are worthless in A's and B's respective books. Intanoiblo ac cots aro to bo writte n off in both k eoks
On January 1, 20x1, Mr. A and Ms. B agreed to form a partnership contributing their respective assets and equities subject to adjustments. On that date, the following were provided: Mr. A 28,000 200,000 120,000 600,000 Ms. B 62,000 600,000 200,000 Cash Accounts receivable Inventories Land Building Furniture & fixtures Intangible assets Accounts payable Other liabilities 50,000 2,000 180,000 200,000 620,000 500,000 35,000 3,000 250,000 350,000 800,000 Capital The following adjustments were agreed upon: a. Accounts receivable of P20,000 and P40,000 are uncollectible in A's and B's respective books. b. Inventories of P6,000 and P7,000 are worthless in A's and B's respective books. Intanoiblo ac cots aro to bo writte n off in both k eoks
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Using the information attached, how much is the initial total capital of the
592,000
750,000
1,342,000
2,322,000
Transcribed Image Text:On January 1, 20x1, Mr. A and Ms. B agreed to form a partnership contributing their respective assets and
equities subject to adjustments. On that date, the following were provided:
Mr. A
28,000
200,000
120,000
600,000
Ms. B
62,000
600,000
200,000
Cash
Accounts receivable
Inventories
Land
Building
Furniture & fixtures
Intangible assets
Accounts payable
50,000
2,000
180,000
200,000
620,000
500,000
35,000
3,000
250,000
350,000
800,000
Other liabilities
Capital
The following adjustments were agreed upon:
a. Accounts receivable of P20,000 and P40,000 are uncollectible in A's and B's respective books.
b. Inventories of P6,000 and P7,000 are worthless in A's and B's respective books.
c. Intangible assets are to be written off in both books.
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