On September 1, 2008, Rody and Lorie formed a partnership with cash contributions of PhP 300,000 respectively. In addition to Rody's cash contribution, he also contributed an office equipment costing PhP 10,000, but with an agreed valuation of P7, 000. Lorie on the other hand contributed a piece of land costing PhP 100,000, but with an agreed valuation of PhP 180,000. The land was mortgaged in a bank for PhP 50,000, and it was agreed that the partnership would absorb the mortgage liability in the bank. Tasks: 1. Prepare the journal entries of the investments for both partners.
On September 1, 2008, Rody and Lorie formed a partnership with cash contributions of PhP 300,000 respectively. In addition to Rody's cash contribution, he also contributed an office equipment costing PhP 10,000, but with an agreed valuation of P7, 000. Lorie on the other hand contributed a piece of land costing PhP 100,000, but with an agreed valuation of PhP 180,000. The land was mortgaged in a bank for PhP 50,000, and it was agreed that the partnership would absorb the mortgage liability in the bank. Tasks: 1. Prepare the journal entries of the investments for both partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![3:25 ở A
Partnership For..
PARTNERSHIP FORMATION
Two Individual Partners
A. Both are Capitalist Partners
On September 1, 2008, Rody and Lorie formed a partnership with cash contributions of PhP 300,000
respectively. In addition to Rody's cash contribution, he also contributed an office equipment costing
PhP 10,000, but with an agreed valuation of P7, 000. Lorie on the other hand contributed a piece of land
costing PhP 100,000, but with an agreed valuation of PhP 180,000. The land was mortgaged in a bank for
PhP 50,000, and it was agreed that the partnership would absorb the mortgage liability in the bank.
Tasks:
1. Prepare the journal entries of the investments for both partners.
B. Both are Capitalist Partners who Contributed Cash and Non-cash Assets
Aga and Hap agreed to form a partnership with a profit and loss ratio of 50:50. On May 1, Aga
contributed cash - PhP 200,000, office equipment with a fair market value of PhP 20,000 and a
secondhand delivery vehicle bought last year for PhP 50,000 but with present fair value of PhP 30,000.
On May 2, Hap contributed cash of PhP 30,000, merchandise bought 3 months ago for PhP 200,000 but
with present fair market value of PhP 210,000 and an antique furniture which cost PhP 5,000, but with
fair market value of PhP 4,000,
Tasks:
1. Prepare the journal entries of the investments for both partners.
PARTNERSHIP FORMATION
A SOLE PROPRIETORSHIP AND AN INDIVIDUAL WITH NO BUSINESS FORMA PARTNERSHIP
On April 8, 2010, Pascua who has her own retail business and Dela Cruz, decided to form a partnership
wherein they will divide profits in the ration of 40:60, respectively. The statement of financial position of
Pascua is as follows:
PASCUA MARKETING
Balance Sheet
April 8, 2010
ASSETS
Cash
PhP
4,000.00
Accounts Receivable
Less: Allowance for Uncollectible
Accounts
PhP 160,000.00
16,000.00
144,000.00
Merchandise Inventory
Equipement
Less: Accumulated Depreciation
TOTAL ASSETS
200,000,00
50,000.00
10,000.00
PhP
40,000.00
PhP 388,000.00
LIABILITIES AND CAPITAL
II](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F31fba8a6-d435-4bda-8afb-abffe039f98d%2F58c52d3b-5ac7-4ba2-a906-380efd02dd96%2Fsghgp24_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3:25 ở A
Partnership For..
PARTNERSHIP FORMATION
Two Individual Partners
A. Both are Capitalist Partners
On September 1, 2008, Rody and Lorie formed a partnership with cash contributions of PhP 300,000
respectively. In addition to Rody's cash contribution, he also contributed an office equipment costing
PhP 10,000, but with an agreed valuation of P7, 000. Lorie on the other hand contributed a piece of land
costing PhP 100,000, but with an agreed valuation of PhP 180,000. The land was mortgaged in a bank for
PhP 50,000, and it was agreed that the partnership would absorb the mortgage liability in the bank.
Tasks:
1. Prepare the journal entries of the investments for both partners.
B. Both are Capitalist Partners who Contributed Cash and Non-cash Assets
Aga and Hap agreed to form a partnership with a profit and loss ratio of 50:50. On May 1, Aga
contributed cash - PhP 200,000, office equipment with a fair market value of PhP 20,000 and a
secondhand delivery vehicle bought last year for PhP 50,000 but with present fair value of PhP 30,000.
On May 2, Hap contributed cash of PhP 30,000, merchandise bought 3 months ago for PhP 200,000 but
with present fair market value of PhP 210,000 and an antique furniture which cost PhP 5,000, but with
fair market value of PhP 4,000,
Tasks:
1. Prepare the journal entries of the investments for both partners.
PARTNERSHIP FORMATION
A SOLE PROPRIETORSHIP AND AN INDIVIDUAL WITH NO BUSINESS FORMA PARTNERSHIP
On April 8, 2010, Pascua who has her own retail business and Dela Cruz, decided to form a partnership
wherein they will divide profits in the ration of 40:60, respectively. The statement of financial position of
Pascua is as follows:
PASCUA MARKETING
Balance Sheet
April 8, 2010
ASSETS
Cash
PhP
4,000.00
Accounts Receivable
Less: Allowance for Uncollectible
Accounts
PhP 160,000.00
16,000.00
144,000.00
Merchandise Inventory
Equipement
Less: Accumulated Depreciation
TOTAL ASSETS
200,000,00
50,000.00
10,000.00
PhP
40,000.00
PhP 388,000.00
LIABILITIES AND CAPITAL
II
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