2. Amion admits Basa for a partnership interest in his business. The balancesheet accounts of Amion on November 30, 2020 prior to the admission ofBasa are as follows:DebitCreditCash312,000Merchandise inventory 468,000Accounts receivableAccounts payableP161,200Amion, capital PARTNERSHIP AND CORPORATION ACCOUNTING| CHIt is agreed that for the purposes of establishing Amion's interest, thefollowing adjustments should be made:An allowance for doubtful accounts of 2% of accounts receivable is tobe established.1.NaCo2. The merchandise inventory is to be valued at P520,000.3. Prepaid expenses of P16,900 and accrued expenses of P10,400 are tobe recognized.Basa invested cash of P369,330 to give him one-third interest in the totalcapital of the firm. What is the capital balance of Amion before theadmission of Basa?Chana. P738,660b. P747,890pafcC. P686,400d. P814,125

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PARTNERSHIP AND CORPORATION ACCOUNTING | CH It is agreed that for the purposes of establishing Amion's interest, th. following adjustments should be made: 1. An allowance for doubtful accounts of 2% of accounts receivable js to be established. Nat 2. The merchandise inventory is to be valued at P520,000. 3. Prepaid expenses of P16,900 and accrued expenses of P10,400 are to be recognized. Co Basa invested cash of P369,330 to give him one-third interest in the total capital of the firm. What is the capital balance of Amion before the admission of Basa? Ch an a. P738,660 b. P747,890 pa fc C. P686,400 d. P814,125

PARTNERSHIP AND CORPORATION ACCOUNTING | CH It is agreed that for the purposes of establishing Amion's interest, th. following adjustments should be made: 1. An allowance for doubtful accounts of 2% of accounts receivable js to be established. Nat 2. The merchandise inventory is to be valued at P520,000. 3. Prepaid expenses of P16,900 and accrued expenses of P10,400 are to be recognized. Co Basa invested cash of P369,330 to give him one-third interest in the total capital of the firm. What is the capital balance of Amion before the admission of Basa? Ch an a. P738,660 b. P747,890 pa fc C. P686,400 d. P814,125

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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Question

2. Amion admits Basa for a partnership interest in his business. The balance
sheet accounts of Amion on November 30, 2020 prior to the admission of
Basa are as follows:
Debit
Credit
Cash
312,000
Merchandise inventory 468,000
Accounts receivable
Accounts payable
P161,200
Amion, capital

PARTNERSHIP AND CORPORATION ACCOUNTING
| CH
It is agreed that for the purposes of establishing Amion's interest, the
following adjustments should be made:
An allowance for doubtful accounts of 2% of accounts receivable is to
be established.
1.
Na
Co
2. The merchandise inventory is to be valued at P520,000.
3. Prepaid expenses of P16,900 and accrued expenses of P10,400 are to
be recognized.
Basa invested cash of P369,330 to give him one-third interest in the total
capital of the firm. What is the capital balance of Amion before the
admission of Basa?
Ch
an
a. P738,660
b. P747,890
pa
fc
C. P686,400
d. P814,125

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