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?

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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

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