On Sept. 1, 2018, the business assets and liabilities of Garfield and Betty are as follows: Garfield Betty Book Value Fair Value Book Value Fair Value Cash P56,000 P56,000 P124,000 P124,000 Accounts Receivable 400,000 360,000 1,200,000 1,120,000 Inventories 240,000 228,000 400,000 386,000 Land 1,200,000 1,300,000 Building 1,000,000 1,040,000 Furniture and Fixtures 100,000 90,000 70,000 66,000 Other Assets 4,000 6,000 Accounts Payable 360,000 360,000 500,000 500,000 Notes Payable 400,000 400,000 700,000 700,000 Garfield and Betty agreed to form a partnership and to share profits based on their capital contribution. The capital amounts to be recorded for Garfield and Betty, respectively

On Sept. 1, 2018, the business assets and liabilities of Garfield and Betty are as follows: Garfield Betty Book Value Fair Value Book Value Fair Value Cash P56,000 P56,000 P124,000 P124,000 Accounts Receivable 400,000 360,000 1,200,000 1,120,000 Inventories 240,000 228,000 400,000 386,000 Land 1,200,000 1,300,000 Building 1,000,000 1,040,000 Furniture and Fixtures 100,000 90,000 70,000 66,000 Other Assets 4,000 6,000 Accounts Payable 360,000 360,000 500,000 500,000 Notes Payable 400,000 400,000 700,000 700,000 Garfield and Betty agreed to form a partnership and to share profits based on their capital contribution. The capital amounts to be recorded for Garfield and Betty, respectively

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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PayNet Inc. (PayNet) and Shale Ltd. (Shale) had the following balance sheets on July 31, 2022:
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