PART L PARTNERSHIP FORMATION AND OPERATIONSOn May 1, 2018, three existing sole proprietors in Cotabato City agreed to form a partnership to engage ina manufacturing business. Their contributions are as follow:JuanaLauraZennyCordillo200.000350,000500,00050,000MendezSevillaCash in BankLandOffice BuildingAccumulated Depreciation-Office BuildingOffice EquipmentAccumulated Depreciation-Office EquipimentFurniture and FixturesAccumulated Depreciation-Furniture & FixturesAccounts PayableMortgage Payable200.000200, 000270,00020,00095,0005,00020,000190,00010,00010,000200,000The partners also agreed that the new partnership will assume their respective sole proprietorship liabilities,and agreed further that the partnership's starting capitalization should be at P2,000,000, and that they areto contribute additional cash necessary to make their individual capital to equal their profit and loss ratio of3:4:3, respectively.Requirement #1:Prepare journal entries in the books of the new partnership to.record the initial investments of the partners.

Journal Entry: It is the entry which is used to record the business transaction of an enterprise in…

PART L PARTNERSHIP FORMATION AND OPERATIONS On May 1, 2018, three existing sole proprietors in Cotabato City agreed to form a partnership to engage in a manufacturing business. Their contributions are as follow. Juana Laura Mendez 200.000 Zemmy Cordillo Sevilla Cash in Bank Land Office Building Accumulated Depreciation-Office Building Office Equipment Accumulated Depreciation-Office Equipment Furniture and Fixtures Accumulated Depreciation-Furniture & Fixtures Accounts Payable Mortgage Payable 200.000 350,000 500,000 50,000 200, 000 270,000 20,000 95,000 5,000 20,000 190,000 10,000 10,000 200,000 The partners also agreed that the new partnership will assume their respective sole proprietorship liabilities, and agreed further that the partnership's starting capitalization should be at P2,000,000, and that they are to contribute additional cash necessary to make their individual capital to equal their profit and loss ratio of 3:4:3, respectively. Requirement #1: Prepare journal entries in the books of the new partnership to.record the initial investments of the pärtners. 11

PART L PARTNERSHIP FORMATION AND OPERATIONS On May 1, 2018, three existing sole proprietors in Cotabato City agreed to form a partnership to engage in a manufacturing business. Their contributions are as follow. Juana Laura Mendez 200.000 Zemmy Cordillo Sevilla Cash in Bank Land Office Building Accumulated Depreciation-Office Building Office Equipment Accumulated Depreciation-Office Equipment Furniture and Fixtures Accumulated Depreciation-Furniture & Fixtures Accounts Payable Mortgage Payable 200.000 350,000 500,000 50,000 200, 000 270,000 20,000 95,000 5,000 20,000 190,000 10,000 10,000 200,000 The partners also agreed that the new partnership will assume their respective sole proprietorship liabilities, and agreed further that the partnership's starting capitalization should be at P2,000,000, and that they are to contribute additional cash necessary to make their individual capital to equal their profit and loss ratio of 3:4:3, respectively. Requirement #1: Prepare journal entries in the books of the new partnership to.record the initial investments of the pärtners. 11

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-7
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