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PART III (Spts each)-Show your solution in a separate paper. On March 1, 2022, PP and QQ decide to combine their businesses and form a partnership. Their balance sheets on March1, before adjustments, showed the following: Cash Accounts Receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses Total Accounts Payable Capital Total C. d. 1. Compute the net (debit) credit adjustment for PP and QQ: PP a. P 2,870 b. (2,870) 870 (870) .P29,500 .P21,000 QQ P 2,820 (2,820) 180 180 PP P 9,000 18,500 30,000 30,000 11,500 6,375 P 105,375 They agreed to have the following items recorded in their books: a) Provide 2% allowance for doubtful accounts. b) PP's furniture and fixtures should be P31,000, while QQ's office equipment is under depreciated by P250. c) Rent expense incurred previously by PP was not yet recorded amounting to P1,000, while salary expense incurred by QQ was not also recorded amounting to P800. d) The fair market value of inventory amount to: a. For PP b. For QQ P45,750 59,625 P105,375 a. QQ b. P 3,750 13,500 19,500 9,000 2,750 3,000 P51,500 2. Compute the total liabilities after formation: P 65,550 61,950 63,750 63,950 C. d. P18,000 33,500 P51,500

PART III (Spts each)-Show your solution in a separate paper. On March 1, 2022, PP and QQ decide to combine their businesses and form a partnership. Their balance sheets on March1, before adjustments, showed the following: Cash Accounts Receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses Total Accounts Payable Capital Total C. d. 1. Compute the net (debit) credit adjustment for PP and QQ: PP a. P 2,870 b. (2,870) 870 (870) .P29,500 .P21,000 QQ P 2,820 (2,820) 180 180 PP P 9,000 18,500 30,000 30,000 11,500 6,375 P 105,375 They agreed to have the following items recorded in their books: a) Provide 2% allowance for doubtful accounts. b) PP's furniture and fixtures should be P31,000, while QQ's office equipment is under depreciated by P250. c) Rent expense incurred previously by PP was not yet recorded amounting to P1,000, while salary expense incurred by QQ was not also recorded amounting to P800. d) The fair market value of inventory amount to: a. For PP b. For QQ P45,750 59,625 P105,375 a. QQ b. P 3,750 13,500 19,500 9,000 2,750 3,000 P51,500 2. Compute the total liabilities after formation: P 65,550 61,950 63,750 63,950 C. d. P18,000 33,500 P51,500

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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a. P3,600,000 0,000 3. On October 1, 2022, Albano and Armando formed a partnership and agreed to share profits and losses in the ratio 3:7 respectively. Albano contributed a parcel of land that cost him P2,000,000. Armando contributed P3,000,000 in cash. The land has a quoted price of P3,600,000 on October 1, 2022. What amount should be recorded in Albano's capital account upon formation of the partnership? Cash Accounts Receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses Total Accounts Payable Capital Total C. d. b. P20,000 PART III (Spts each) - Show your solution in a separate paper. On March 1, 2022, PP and QQ decide to combine their businesses and form a partnership. Their balance sheets on March1, before adjustments, showed the following: PP a. P 2,870 b. (2,870) 870 (870) b. P3,000,000 1. Compute the net (debit) credit adjustment for PP and QQ: c. P25,000 QQ P 2,820 (2,820) 180 180 c. P3,480,000 PP P 9,000 18,500 30,000 30,000 11,500 6,375 P 105,375 P45,750 59,625 P105,375 d. P50,000 They agreed to have the following items recorded in their books: a) Provide 2% allowance for doubtful accounts. b) PP's furniture and fixtures should be P31,000, while QQ's office equipment is under depreciated by P250. c) Rent expense incurred previously by PP was not yet recorded amounting to P1,000, while salary expense incurred by QQ was not also recorded amounting to P800. d) The fair market value of inventory amount to: a. For PP .....P29,500 .........P21,000 b. For QQ........ d. P2,000,000 a. b. T QQ P 3,750 13,500 19,500 9,000 2,750 3,000 P51,500 P18,000 33,500 P51,500 2. Compute the total liabilities after formation: P 65,550 61,950 C. 63,750 d. 63,950
Transcribed Image Text:a. P3,600,000 0,000 3. On October 1, 2022, Albano and Armando formed a partnership and agreed to share profits and losses in the ratio 3:7 respectively. Albano contributed a parcel of land that cost him P2,000,000. Armando contributed P3,000,000 in cash. The land has a quoted price of P3,600,000 on October 1, 2022. What amount should be recorded in Albano's capital account upon formation of the partnership? Cash Accounts Receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses Total Accounts Payable Capital Total C. d. b. P20,000 PART III (Spts each) - Show your solution in a separate paper. On March 1, 2022, PP and QQ decide to combine their businesses and form a partnership. Their balance sheets on March1, before adjustments, showed the following: PP a. P 2,870 b. (2,870) 870 (870) b. P3,000,000 1. Compute the net (debit) credit adjustment for PP and QQ: c. P25,000 QQ P 2,820 (2,820) 180 180 c. P3,480,000 PP P 9,000 18,500 30,000 30,000 11,500 6,375 P 105,375 P45,750 59,625 P105,375 d. P50,000 They agreed to have the following items recorded in their books: a) Provide 2% allowance for doubtful accounts. b) PP's furniture and fixtures should be P31,000, while QQ's office equipment is under depreciated by P250. c) Rent expense incurred previously by PP was not yet recorded amounting to P1,000, while salary expense incurred by QQ was not also recorded amounting to P800. d) The fair market value of inventory amount to: a. For PP .....P29,500 .........P21,000 b. For QQ........ d. P2,000,000 a. b. T QQ P 3,750 13,500 19,500 9,000 2,750 3,000 P51,500 P18,000 33,500 P51,500 2. Compute the total liabilities after formation: P 65,550 61,950 C. 63,750 d. 63,950
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