On June 1 of the current year, Jocson and Gomez form a partnership. Jocson is to invest certain business assets at values which are yet to be agreed upon. He is to transfer his business liabilities and is to contribute sufficient cash to bring his total capital to P 180,000, which is 60% of the total capital as had been agreed upon. Details regarding the book values of Jocson's business assets and liabilities and their corresponding valuation follow: Book Agreed Values Valuations Accounts Receivable P 54,000 P 54,000 3,600 Allowance for doubtful accounts 6,000 Merchandise Inventory 96,600 27,000 105,000 Store Equipment 27,000 Accumulated Depreciation - Store equipment 18,000 13,200 Office equipment Accumulated Depreciation - Office equipment 18,000 9,600 18,000 4,800 48,000 Accounts payable 48,000 Gomez agrees to invest cash of P 30,000 and merchandise valued at current market price. Determine the value of the merchandise to be invested by Gomez.

On June 1 of the current year, Jocson and Gomez form a partnership. Jocson is to invest certain business assets at values which are yet to be agreed upon. He is to transfer his business liabilities and is to contribute sufficient cash to bring his total capital to P 180,000, which is 60% of the total capital as had been agreed upon. Details regarding the book values of Jocson's business assets and liabilities and their corresponding valuation follow: Book Agreed Values Valuations Accounts Receivable P 54,000 P 54,000 3,600 Allowance for doubtful accounts 6,000 Merchandise Inventory 96,600 27,000 105,000 Store Equipment 27,000 Accumulated Depreciation - Store equipment 18,000 13,200 Office equipment Accumulated Depreciation - Office equipment 18,000 9,600 18,000 4,800 48,000 Accounts payable 48,000 Gomez agrees to invest cash of P 30,000 and merchandise valued at current market price. Determine the value of the merchandise to be invested by Gomez.

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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