See the problem in the photo.On May 31, 2018, with the consent of Rivadelo, Del Mundo, and Samson:a. Galvan retired from the partnership and was paid P50,000 cash in full settlement of his interest in thepartnership.b. Mamitag was admitted to the partnership with a P20,000 cash investment for a 10% interest in the net assets ofthe partnership. No goodwill will be recognized.Prepare the journal entries to record the foregoing events. B. The partner's capital (income-sharing ratio in parentheses) of Rivadelo, Del Mundo, Galvan and Samson on May31, 2018, was as follows:Rivadelo (20%)P 60,000Del Mundo (20%)80,000Galvan (20%)70,000Samson (40%)40,000Total Partners' Capital250,000On May 31, 2018, with the consent of Rivadelo, Del Mundo, and Samson:a. Galvan retired from the partnership and was paid P50,000 cash in full settlement of his interest in thepartnership.b. Mamitag was admitted to the partnership with a P20,000 cash investment for a 10% interest in the net assets ofthe partnership. No goodwill will be recognized.Prepare the journal entries to record the foregoing events.

Partnership: A business entity created by legal agreement between two or more persons for the…

Answered: Prepare the journal entries to record…

Business

Accounting

Prepare the journal entries to record the foregoing events.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 9E

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See the problem in the photo.

On May 31, 2018, with the consent of Rivadelo, Del Mundo, and Samson:
a. Galvan retired from the partnership and was paid P50,000 cash in full settlement of his interest in the
partnership.
b. Mamitag was admitted to the partnership with a P20,000 cash investment for a 10% interest in the net assets of
the partnership. No goodwill will be recognized.

Prepare the journal entries to record the foregoing events.

B. The partner's capital (income-sharing ratio in parentheses) of Rivadelo, Del Mundo, Galvan and Samson on May
31, 2018, was as follows:
Rivadelo (20%)
P 60,000
Del Mundo (20%)
80,000
Galvan (20%)
70,000
Samson (40%)
40,000
Total Partners' Capital
250,000
On May 31, 2018, with the consent of Rivadelo, Del Mundo, and Samson:
a. Galvan retired from the partnership and was paid P50,000 cash in full settlement of his interest in the
partnership.
b. Mamitag was admitted to the partnership with a P20,000 cash investment for a 10% interest in the net assets of
the partnership. No goodwill will be recognized.
Prepare the journal entries to record the foregoing events.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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