Problem 11 Partners Kitty and Puppy, who share equally in profits and losses, have the following balance sheet as of December 31 of the current year. Cash 172,000 120,000 100,000 Payables Accum Dept'n. Kitty, Capital Puppy, Capital Receivables 8,000 Inventory PPE Total 140,000 140,000 80,000 440,000 120,000 440,000 Total They agreed to incorporate their partnership, with the new corporation absorbing the net assets after the following adjustments: provision of allowance for bad debts of P10,000; restatement of the inventory at its current fair value of P160,000; and, recognition of further depreciation on equipment of P3,000. The corporation's capital stock is to have a par value of P100, and the partners are to be issued corresponding total shares equivalent to their adjusted capital balances. 21 How many total number of shares that were issued to the partners? A. 260,000 B. 267,000 C. 2,670 D. 2,600

Problem 11 Partners Kitty and Puppy, who share equally in profits and losses, have the following balance sheet as of December 31 of the current year. Cash 172,000 120,000 100,000 Payables Accum Dept'n. Kitty, Capital Puppy, Capital Receivables 8,000 Inventory PPE Total 140,000 140,000 80,000 440,000 120,000 440,000 Total They agreed to incorporate their partnership, with the new corporation absorbing the net assets after the following adjustments: provision of allowance for bad debts of P10,000; restatement of the inventory at its current fair value of P160,000; and, recognition of further depreciation on equipment of P3,000. The corporation's capital stock is to have a par value of P100, and the partners are to be issued corresponding total shares equivalent to their adjusted capital balances. 21 How many total number of shares that were issued to the partners? A. 260,000 B. 267,000 C. 2,670 D. 2,600

Name: Problem 11Partners Kitty and Puppy, who share equally in profits and
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Description: Problem 11Partners Kitty and Puppy, who share equally in profits and losses, have the following balance sheet as ofDecember 31 of the current year.CashReceivables120,000100,000140,000PayablesAccum Dept'n.Kitty, CapitalPuppy, CapitalTotal172,0008,000

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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