PARTL PARTNERSHIP FORMATION AND OPERATIONSOn April 1, 2020, three existing sole proprietors in Cotabato City agreed to form a partnership to engage ina Hanufacturing business. Their contributions are as follow:JobertManuelLeopoldoZanderSantosLimba100,000250,000600,000120,000Cash in Bank200,000200,000 PLandOffice BuildingAccumulated Depreciation-Office BuildingOffice EquipmentAccumulated Depreciation-Office EquipmentFurniture and FixturesAccumulated Depreciation-Furniture & FixturesAccounts PayableMortgage Payable200,00040,000150,00015,00010,00070,0003,50010,000100,000The 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 of3:3:4, respectively.Prepare journal entries in the books of the new partnership to record the initial investments of the partners.

PARTL PARTNERSHIP FORMATION AND OPERATIONS On April 1, 2020, three existing sole proprietors in Cotabato City agreed to form a partnership to engage in a anufacturing business. Their contributions are as follow: Jobert Leopoldo Santos Zander Manuel Limba 100,000 250,000 600,000 120,000 Cash in Bank Land 200,000 200,000 P Office Building Accumulated Depreciation-Office Building Office Equipment Accumulated Depreciation-Office Equipment Furniture and Fixtures 200,000 40,000 150,000 Accumulated Depreciation-Furniture & Fixtures Accounts Payable Mortgage Payable 70,000 3,500 10,000 15,000 10,000 100,000 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 3:3:4, respectively.. Prepare journal entries in the books of the new partnership to record the initial investments of the partners.

PARTL PARTNERSHIP FORMATION AND OPERATIONS On April 1, 2020, three existing sole proprietors in Cotabato City agreed to form a partnership to engage in a anufacturing business. Their contributions are as follow: Jobert Leopoldo Santos Zander Manuel Limba 100,000 250,000 600,000 120,000 Cash in Bank Land 200,000 200,000 P Office Building Accumulated Depreciation-Office Building Office Equipment Accumulated Depreciation-Office Equipment Furniture and Fixtures 200,000 40,000 150,000 Accumulated Depreciation-Furniture & Fixtures Accounts Payable Mortgage Payable 70,000 3,500 10,000 15,000 10,000 100,000 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 3:3:4, respectively.. Prepare journal entries in the books of the new partnership to record the initial investments of the partners.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Exercise 3-8. Distribution of Net Income to partners On March 1, 2023 Glenda and Harry formed GH Partnership with initial investment of P800,000 and P1,200,000, respectively. Glenda is appointed as the managing partner. The articles of co-partnership provides that profit or loss shall be distributed accordingly: 10% interest on original capital contribution ratio. Monthly salary of P10,000 and P5,000 respectively for Glenda and Harry. . Glenda shall be entitled to bonus equivalent to 10% of net income after interest, and salary. The remainder shall be distributed in ratio of 4:6 for Glenda and Harry, respectively. ● For the year ended December 31, 2023, the partnership reported net income of P1,000,000. Required: Compute for the share in net income of Glenda for the year ended December 31, 2023.
Plzz answer to All Part
Chapter 2: Partnerships Exercise - 1 Computing initial partner investments Careem and Labeeb establish an equal partnership in both cquity and profits to operate a used- furniture business under the name of C&L Furniture. Careem contributes furniture inventory that cost $120,000 and has fair value of $160,000. Labceb contributes $60,000 cash and delivery cquipment that cost $80,000 and has a fair valuc of $60,000. Required: Assume that the initial noncash contributions of the partners are recorded at fair market value. A) Compute the ending balance of cach capital account under the bonus and goodwill approaches. B) Prepare the journal entries of the initial investments under both approaches.
Activity 4: On January 2, 2020, Jenny and Kenny formed a partnership. The following assets were contributed by each of the partners: LOUKS UN Kenny P 60,000 10,000 180,000 Jenny 40.000 Cash Inventory Equipment 60,000 The equipment of Kenny is subject to a mortgage of P50,000 which the partnership has assumed. The partnership agreement specifies that each partner receives 10% interest on her beginning capital balance. Jenny receives an annual salary of P15,000; Kenny receives an annual salary of P20,000. The remaining profit or loss is divided using 2:3 ratio with 2 parts assigned to Jenny and 3 parts assigned to Kenny. During 2020, the partnership had an income of P185,000. Assume there were no drawings during 2020. On January 2, 2021, Jenny and Kenny decide to admit a new partner, Lenny, for a 1/6 interest in the firm for P175,000. The bonus method is used to record the admission of the new partner. After admitting the new partner the partnership agreement is amended as follows: Each…
Soultion for Part B Part B (2020) a. On December 31, 2020 new partner D invests other assets into the partnership for a one-quarter ownership interest. An equal amount of capital is contributed by A, B, and C to make up the difference. At December 31, 2020, the partners' capital balances are as follows: A $200,000 B 180,000 C 190,000 $ 570,000 Fair value of other assets from D $50,000 b. Immediately after this, partner C withdraws from the partnership. She is paid in cash the balance in her capital account plus a bonus, contributed equally from the capital balances of A, B, and D. Bonus paid to C $ 18,000 Required 5 Prepare necessary adjusting entries at December 31, 2020 to record the admission of…
A, B and C decided to form ABC Partnership on January 1, 2022.. . It was agreed that A will contribute an equipment with historical cost of P800,000 and accumulated depreciation of P500,000. On the date of formation, the fair value of equipment was P400,000. B will contribute an automobile with carrying amount of P1,200,000 and fair value of P1,500,000. The automobile is subject to a loan payable amounting to P300,000 to be assumed by the partnership. The partners agreed that C will have to contribute cash equal to half of B's capital. Compute the total capital of the partnership.
Admitting New Partner With Bonus L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $9,000. The capital balances of each partner are $74,500 and $103,000, respectively, prior to the revaluation. Question Content Area a. Provide the journal entry for the asset revaluation. For a compound transaction, if an amount box does not require an entry, leave it blank. blank EquipmentL. Bowers, CapitalL. Bowers, DrawingV. Lipscomb, DrawingM. Ortiz, Capital - Select - - Select - CashEquipmentL. Bowers, DrawingV. Lipscomb, CapitalM. Ortiz, Capital - Select - - Select - EquipmentL. Bowers, CapitalV. Lipscomb, CapitalM. Ortiz, CapitalM. Ortiz, Drawing - Select - - Select - Question Content Area b. Provide the journal entry for Ortiz’s admission under the following independent situations: 1. Ortiz purchased a 20%…
EXERCISE 4. Journal Entries - Cash, non-cash, and industry contributions. Prepare and upload the journal entries to record contributions of Kim and Krislam into the partnership under the following independent assumptions: 1. Cash contribution amounting to $45,000 each. 2. Kim contributed $35,000 cash and a store equipment with carrying value of $27,000. Krislam contributed $15,000 cash and a delivery vehicle with a fair market value of $195,000. Kim and Krislam agreed that each depreciable asset is overvalued by $4,000. 3. Kim contributed $10,000 cash and furniture and fixtures with carrying value of $32,000. Krislam contributed $5,000 cash and a building with a fair market value of $295,000 and an unpaid mortgage of $27,500. Kim and Krislam agreed that building is undervalued by $9,000. 4. Kim contributed $25,000 cash, a store equipment with fair market value of $47,000, and delivery vehicle with a fair market value of $175,000. Krislam, an industrial partner, was to contribute her…
Manji
kindly answer the problem below.