The conditions agreed by the partners for purposes of determining their interests in the partnership are presentedbelow:10% of accounts receivable is to be set up as uncollectible in each book.b. Merchandise inventory of Henry is to be increased by P 1, 000.The furniture and fixtures of Gerry and Henry are to be depreciated by P 600 and P 900 respectively.a.c.Required:Prepare the necessary journal entries to record the formation of the partnership.Problem #4Froilan Labausa contributed land, inventory and P 280,000 cash to a partnership. The land has a book value of P 650,000 and a market value of P 1,350,000. The inventory has a book value of P 600,000 and a market value of P 510,000.The partnership also assumed a P 350,000 note payable owed by Labausa that was used to purchase the land. RosalieBalhag agreed to put up cash equivalent to Labausa's net investment.REQUIRED: prepare the journal entry to record Labausa's and Balahag's investment in the partnership.Problem #5Sabio, as her original investment in the firm of Sabio and Mariano, contributed equipment that had been recorded inthe books of her own business as costing P 900, 000, with accumulated depreciation of P 620, 000. The partners agreedon a valuation of P 400, 000. they also agreed to accept Sabio's accounts receivable of P 360, 000, realizable to theextent of 85%.REQUIRED: Prepare the journal entry to record Sabio's investment in the partnership.Problem #6Gogola and Paglinawan have just formed a partnership. Gogola contributed cash of P 1,260,000 and computerequipment that cost P 540,000. The fair value of the computer is P 360,000. Gogola has notes payable on the computerof P 120,000 to be assumed by the partnership. Gogola is to have a 60% capital interest in the partnership. Paglinawancontributed only P 900,000. The partners agreed to share profits and loss equally.Gogola should make an additional investment or (withdrawal) of?

Hi student Since there are multiple questions, we will answer only first question.

Problem #4 Froilan Labausa contributed land, inventory and P 280,000 cash to a partnership. The land has a book value of P 650, 000 and a market value of P 1,350,000. The inventory has a book value of P 600,000 and a market value of P 510,000. The partnership also assumed a P 350,000 note payable owed by Labausa that was used to purchase the land. Rosalie Balhag agreed to put up cash equivalent to Labausa's net investment. REQUIRED: prepare the journal entry to record Labausa's and Balahag's investment in the partnership.

Problem #4 Froilan Labausa contributed land, inventory and P 280,000 cash to a partnership. The land has a book value of P 650, 000 and a market value of P 1,350,000. The inventory has a book value of P 600,000 and a market value of P 510,000. The partnership also assumed a P 350,000 note payable owed by Labausa that was used to purchase the land. Rosalie Balhag agreed to put up cash equivalent to Labausa's net investment. REQUIRED: prepare the journal entry to record Labausa's and Balahag's investment in the partnership.

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

E
Partnership Distribution Davey has an outside basis in Feline Partnership of $260,000. The partnership distributes the following assets to Davey in a proportionate, non-liquidating distribution: Land (fair market value of $160,000 and basis to partnership of $120,000 $60,000 cash Accounts receivable (fair market value of $120,000 and basis of $0) 1. How much gain or loss will Davey recognize from this distribution? 2. How much gain of loss will Feline Partnership recognize from this distribution? 3. What is Davey’s basis in the land? What is Davey’s basis in the accounts receivable? 4. What is Davey’s outside basis in the partnership following the distribution? 5. How would your answers to the above questions change if the distribution were a liquidating distribution?
Test bank ch 1.pdf -Foxit Reader VIEW FORM PROTECT SHARE HELP napShot D Fit Page Q From Scanner 会Link O Fle Attachment 157.60% abe Highlight ipboard DFit Width Rotate Left T Strikeout ** Blank A Bookmark a Image Annotation Actual Size D Fit Visible m Rotate Right Typewriter Note From PDF U Underline File a From Clipboard Sign- O Audio & Video View Comment Create Protect Links Insert Test bank ch 1.pdf 96) Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost Variable Cost Per Unit Increase Decrease A) B) C) D) Constant Decrease Decrease Constant Increase Constant A) Choice A B) Choice B C) Choice C D) Choice D
C and D form the CD, LLC even partnership. A contributed land with an adjusted basis of $50 and FMV of $100. D contributed equipment with an adjusted basis of $75 and FMV of $100. Immediately after this contribution, what is the balance in D's 704(b) capital account? $175 $75 $100 $50
Munabhai
C and D form the CD, LLC even partnership. A contributed land with an adjusted basis of $50 and FMV of $100. D contributed equipment with an adjusted basis of $75 and FMV of $100. Immediately after this contribution, what is the balance in D's 704(b) capital account? $175 $75 $100 $50
pvn.2
Please solve part C
i need the answer quickly
1. A, B and C, three individuals, form a general partnership by contributing the following property in exchange for equal 1/3 interests in the partnership's capital, profits, and losses: A contributes land, a capital asset that A acquired several years ago, worth $100 in which A has a tax basis of $40. contributes machinery with a basis of $25 and a value of $60, plus $40 in cash. purchased the machinery several years ago for $75 and has taken $50 of depreciation. contributes inventory with a value of $100 in which has a basis of $90. What gain and/or loss will be recognized by the partners and the partnership on formation? What will be the partnership's "inside basis" and holding period for each of the contributed assets? What will be the partners' "outside bases" and holding period for their partnership interests?
Hw.114.