1. Compute the net (debit)/credit adjustment for EE anf FF. EE FF EE FFA. 28,700 ; 28,200 C. (8,700) ; 1,800B. (28,700) ; (28,200) D. 8,700 ; (1,800)2. Compute the total assets after the formation.A. 1,607,650 C. 1,579,850B. 1,570,850 D. 1,568,7503. If the partners are to share profits and losses in the ratio of 6:4 and their capital is top reflect this relationship, what is the capital of FF after the formation?A. 400,000 C. 369,740B. 391,700 D. 391,7004. If If the partners are to share profits and losses in the ratio of 6:4 and their capital is top reflect this relationship with EE’s capital to be used as a basis, what is the capital of FF after the formation?A. 400,000 C. 369,740B. 391,700 D. 391,700 Problem 4On March 1, 2020, EE and FF decided to combine their business and form a partnership. Their balance sheets on March 1 before adjustments showed the following:EEFFCash90,000.00185,000.00300,000.00350,000.00(50,000.00)115,000.0063,750.001,053,750.0037,500.00135,000.00195,000.00100,000.00(10,000.00)27,500.0030,000.00Accounts receivableInventoriesFurniture and fixturesAccumulated depreciationOffice equipmentPrepaid expensesTotal515,000.00Accounts payableEE, CapitalFF, CapitalTotal457,500.00596,250.00180,000.00335,000.001,053,750.00515,000.00They agreed to have the following items recorded in their books:1. Provide 2% allowance for doubtful accounts.2. EE's furniture and fixtures should be P310,000, while FF's office equipment is underdepreciated by P2,500.3. Rent expense incurred previously by EE was not yet recorded amounting to P10,000, while4. The fair value of EE's anf FF's inventory amounted to P295,000 and P210,000 each respectively.

Name: 1. Compute the net (debit)/credit adjustment for EE anf FF. EE
Uploaded: 2024-03-04T10:43:15.000Z
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Description: 1. Compute the net (debit)/credit adjustment for EE anf FF. EE FF EE FFA. 28,700 ; 28,200 C. (8,700) ; 1,800B. (28,700) ; (28,200) D. 8,700 ; (1,800)2. Compute the total assets after the

Partnership Formation: When two or more entities decide to enter an agreement for the profit sharing…

Answered: Problem 4 On March 1, 2020, EE and FF…

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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1. Compute the net (debit)/credit adjustment for EE anf FF.
EE FF EE FF
A. 28,700 ; 28,200 C. (8,700) ; 1,800
B. (28,700) ; (28,200) D. 8,700 ; (1,800)

2. Compute the total assets after the formation.
A. 1,607,650 C. 1,579,850
B. 1,570,850 D. 1,568,750

3. If the partners are to share profits and losses in the ratio of 6:4 and their capital is top reflect this relationship, what is the capital of FF after the formation?
A. 400,000 C. 369,740
B. 391,700 D. 391,700

4. If If the partners are to share profits and losses in the ratio of 6:4 and their capital is top reflect this relationship with EE’s capital to be used as a basis, what is the capital of FF after the formation?
A. 400,000 C. 369,740
B. 391,700 D. 391,700

Problem 4
On March 1, 2020, EE and FF decided to combine their business and form a partnership. Their balance sheets on March 1 before adjustments showed the following:
EE
FF
Cash
90,000.00
185,000.00
300,000.00
350,000.00
(50,000.00)
115,000.00
63,750.00
1,053,750.00
37,500.00
135,000.00
195,000.00
100,000.00
(10,000.00)
27,500.00
30,000.00
Accounts receivable
Inventories
Furniture and fixtures
Accumulated depreciation
Office equipment
Prepaid expenses
Total
515,000.00
Accounts payable
EE, Capital
FF, Capital
Total
457,500.00
596,250.00
180,000.00
335,000.00
1,053,750.00
515,000.00
They agreed to have the following items recorded in their books:
1. Provide 2% allowance for doubtful accounts.
2. EE's furniture and fixtures should be P310,000, while FF's office equipment is underdepreciated by P2,500.
3. Rent expense incurred previously by EE was not yet recorded amounting to P10,000, while
4. The fair value of EE's anf FF's inventory amounted to P295,000 and P210,000 each respectively.

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