On September 30, 2021, Lopez admits Mendez for an interest in his business. On this date, Lopez's capital account showed a balance of P158,400. The following were agreed upon before the formation of the partnership: Prepaid expenses of P17,500 and accrued expenses of P5,000 are to be recognized 5% of the outstanding accounts receivable of Lopez amounting to P100,000 is to be recognized as uncollectibles. Mendez is to be credited with a one-third interest in the partnership and is to investment cash for that interest. How much cash should be invested by Mendez?
On September 30, 2021, Lopez admits Mendez for an interest in his business. On this date, Lopez's capital account showed a balance of P158,400. The following were agreed upon before the formation of the partnership: Prepaid expenses of P17,500 and accrued expenses of P5,000 are to be recognized 5% of the outstanding accounts receivable of Lopez amounting to P100,000 is to be recognized as uncollectibles. Mendez is to be credited with a one-third interest in the partnership and is to investment cash for that interest. How much cash should be invested by Mendez?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On September 30, 2021, Lopez admits Mendez for an interest in his business. On
this date, Lopez's capital account showed a balance of P158,400. The following were agreed upon before the formation of the
Prepaid expenses of P17,500 and accrued expenses of P5,000 are to be recognized
- 5% of the outstanding
accounts receivable of Lopez amounting to P100,000 is to be recognized as uncollectibles. - Mendez is to be credited with a one-third interest in the partnership and is to investment cash for that interest.
How much cash should be invested by Mendez?
Transcribed Image Text:Matt and Jeff organized their partnership on January 1, 2021 The following were the partnership capital
accounts
Mat, Capital
35,000
7/1
10,000
10/1
5,000
Jeft, Capital
10/1
10,000 1/1
25,000
11/1
6,000 V1
10,000
12/1
,000
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