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On January 1, 20x1, the partners of ABC Partnership decided to admit other investors. As a result, the partnership was converted to a corporation. Relevant information follows: Carrying amounts Fair values Cash 20,000 20,000 Receivables 60,000 40,000 Inventory 80,000 70,000 Equipment 540,000 670,000 Payables A, Capital (20%) B, Capital (30%) C, Capital (50%) 50,000 150,000 200,000 300,000 50,000 N/A N/A N/A The corporation has an authorized capitalization of P2,000,000 divided into 200,000 ordinary shares with par value of P10 per share. Shares were issued to the former partners based on their respective adjusted capital balances. How many shares did each of the partners receive? Show computation.

On January 1, 20x1, the partners of ABC Partnership decided to admit other investors. As a result, the partnership was converted to a corporation. Relevant information follows: Carrying amounts Fair values Cash 20,000 20,000 Receivables 60,000 40,000 Inventory 80,000 70,000 Equipment 540,000 670,000 Payables A, Capital (20%) B, Capital (30%) C, Capital (50%) 50,000 150,000 200,000 300,000 50,000 N/A N/A N/A The corporation has an authorized capitalization of P2,000,000 divided into 200,000 ordinary shares with par value of P10 per share. Shares were issued to the former partners based on their respective adjusted capital balances. How many shares did each of the partners receive? Show computation.

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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On January 1, 20x1, the partners of ABC Partnership decided to admit other investors. As a result, the
partnership was converted to a corporation. Relevant information follows:
Carrying amounts Fair values
Cash
20,000 20,000
Receivables
60,000 40,000
Inventory
80,000 70,000
Equipment 540,000 670,000
Payables
A, Capital (20%)
B, Capital (30%)
C, Capital (50%)
50,000
150,000
200,000
300,000
50,000
N/A
N/A
N/A
The corporation has an authorized capitalization of P2,000,000 divided into 200,000 ordinary shares
with par value of P10 per share. Shares were issued to the former partners based on their respective
adjusted capital balances. How many shares did each of the partners receive? Show computation.

On January 1, 20x1, the partners of ABC Partnership decided to admit other investors. As a result, the partnership was converted to a corporation. Relevant information follows: Carrying amounts Fair values 20,000 Cash 20,000 Receivables 60,000 40,000 Inventory 80,000 70,000 Equipment 540,000 670,000 Payables 50,000 50,000 A, Capital (20%) N/A N/A N/A 150,000 B, Capital (30%) 200,000 C, Capital (50%) 300,000 The corporation has an authorized capitalization of P2,000,000 divided into 200,000 ordinary shares with par value of P10 per share. Shares were issued to the former partners based on their respecti adjusted capital balances. How many shares did each of the partners receive? Show computatio
Transcribed Image Text:On January 1, 20x1, the partners of ABC Partnership decided to admit other investors. As a result, the partnership was converted to a corporation. Relevant information follows: Carrying amounts Fair values 20,000 Cash 20,000 Receivables 60,000 40,000 Inventory 80,000 70,000 Equipment 540,000 670,000 Payables 50,000 50,000 A, Capital (20%) N/A N/A N/A 150,000 B, Capital (30%) 200,000 C, Capital (50%) 300,000 The corporation has an authorized capitalization of P2,000,000 divided into 200,000 ordinary shares with par value of P10 per share. Shares were issued to the former partners based on their respecti adjusted capital balances. How many shares did each of the partners receive? Show computatio
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