Problem 7 On March 1, 2018, X and Y formed a partnership. The partners contributed the following X Y P500,000 P400,000 Cash Accounts Receivable 300,000 200,000 50,000 20,000 Allowance for doubtful accounts Inventory 150,000 100,000 Equipment 500,000 200,000 25,000 Accumulated depreciation Accounts Payable 100,000 50,000 400,000 Note Payable 200,000 The partners agree on the following a P10,000 of the accounts receivable of X as to be write-off b. An allowance for doubtful accounts of 15% is to be established on the remaining receivables of X and Y. c. The inventory of X is to be valued at P140,000 4. The equipment of Xas under depreciated by P20,000 and the equipment of Y has a fair value of P190,000 e. The note of X is dated December 1, 2017 and is subject to a 12% interest Interest had not yet been accrued f The partners agree on a 2:1 profit and loss ratio. The partners agree to bring their capital balance proportionate to their profit and loss ratio What is the total assets of the partnership immediately after the formation? mation?

Problem 7 On March 1, 2018, X and Y formed a partnership. The partners contributed the following X Y P500,000 P400,000 Cash Accounts Receivable 300,000 200,000 50,000 20,000 Allowance for doubtful accounts Inventory 150,000 100,000 Equipment 500,000 200,000 25,000 Accumulated depreciation Accounts Payable 100,000 50,000 400,000 Note Payable 200,000 The partners agree on the following a P10,000 of the accounts receivable of X as to be write-off b. An allowance for doubtful accounts of 15% is to be established on the remaining receivables of X and Y. c. The inventory of X is to be valued at P140,000 4. The equipment of Xas under depreciated by P20,000 and the equipment of Y has a fair value of P190,000 e. The note of X is dated December 1, 2017 and is subject to a 12% interest Interest had not yet been accrued f The partners agree on a 2:1 profit and loss ratio. The partners agree to bring their capital balance proportionate to their profit and loss ratio What is the total assets of the partnership immediately after the formation? mation?

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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On March 1, 2018, X and Y formed a partnership. The partners contributed the following:X YCash P500,000 P400,000Accounts Receivable 300,000 200,000Allowance for doubtful accounts 50,000 20,000Inventory 150,000 100,000Equipment 500,000 200,000 Accumulated depreciation 100,000 25,000Accounts Payable 50,000 400,000Note Payable 200,000 The partners agree on the following:a. P10,000 of the accounts receivable of X is to be written-off.b. An allowance for doubtful accounts of 15% is to be established on the remaining receivables of Xand Y.c. The inventory of Y is to be valued at P140,000.d. The equipment of X is under depreciated by P20,000 and the equipment of Y has a fair value ofP190,000.e. The note of X is dated December 1, 2017 and is subject to a 12% interest . Interest had not yetbeen accrued.f. The partners agree on a 2:1 profit and loss ratio.g. The partners agree to bring their capital balance proportionate to their profit and loss ratio.If Y's Capital is to be used as basis, how…
Problem #4 Admission by Investment of Assets Resulta and Magpantay are partners sharing profits on a 60:40 ratio. A statement of financial position prepared for the partners on April 1, 2019 follows: Cash P 480,000 Accounts Payable P 890,000 1,330,000 Accounts Receivable 920,000 1,650,000 Resulta, Capital Inventories Magpantay, Capital 1,080,000 Equipment P700,000 Less: Accumulated Depreciation 450,000 250,000 P3,300,000 Total Assets Total Liabilities & Capital P3,300,000 On this date, the partners agreed to admit Tria as a partner. The terms of the agreement are summarized below: Assets and liabilities are to be restated as follows: a. An allowance for possible uncollectibles of P45,000 is to be established. b. Inventories are to be restated at their present replacement value of P1,700,000. C. Accrued expenses of P40,000 are to be recognized. Resulta, Magpantay and Tria will divide profits in the ratio of 5:3:2. Capital balances of the partners after the formation of the new…
Problem 5 As of July 1, 2020, MM and AA decided to form a partnership. Their balance sheets on this date are: MM AA 15,000.00 680,000.00 (140,000.00) Cash 38,000.00 255,000.00 (30,000.00) 202,000.00 270,000.00 735,000.00 Accounts receivable Allowance for doubtful accounts Merchandise Inventory Machinery and Equipment Total 150,000.00 705,000.00 Accounts payable MМ, Сaptal AA, Capital Total 135,000.00 570,000.00 240,000.00 495,000.00 735,000.00 705,000.00 The partners agreed that the machinery and equipment of MM is under depreciated by P15,000 and that of AA by P45,000. Allowances for doubtful accounts is to be set up amounting to P120,000 for MM and P40,000 for AA. The partnership agreement provides for the proft and loss ratio and capital interest of 60% to MM and 40% to AA with AA's capital as base. How much cash must MM invest to bring the partner's capital balances proportionate to their profit and loss ratio?
Show the solution in good accounting form On March 1, 2018, X and Y formed a partnership. The partners contributed the following: X Y Cash P500,000 P400,000 Accounts Receivable 300,000 200,000 Allowance for doubtful accounts50,000 20,000 Inventory 150,000 100,000 Equipment 500,000 200,000 Accumulated depreciation 100,000 25,000 Accounts Payable 50,000 400,000 Note Payable 200,00 The partners agree on the following: a. P10,000 of the accounts receivable of X is to be written-off. b. An allowance for doubtful accounts of 15% is to be established on the remaining receivatbies of X and Y. C. The inventory of Y is to be valued at P140,000. D. The equipment of X is under depreciated by P20,000 and the equipment ofY has a fair value of P190,000. E.…
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#511 The balance sheet for Coney, Honey and Money partnership shows the following information as of December 31, 2021: Profit and loss ratio is 3:2:1 for Coney, Honey and Money, respectively. Other assets were realized as follows: Cash is distributed as assets are realized. The total cash received by Honey is P100,000 P30,000 P0 P40,000 The total loss to Coney is P60,000 P0 P40,000 P20,000 Cash received by Money in January 2022 is P10,000 P0 P4,000 P20,00
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The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? OA. R12 000 DR. B. R116 00O DR OC. R52 000 CR D. R12 000 CR S Type here to search
ns/d/e/1FAlpQLSctKcKeXPGMjY7sLc-jKwKLdkwO-Tf4OZHjCtiE13CRyH our email Form* Your answer QUESTION 3 A. State the significance of the brought down balance on EACH partner's current account." Barney and Swiper are in partnership. Their Current Account balances as at 31 March 2015 before appropriation were: a. Current Accounts Barney Swaper 2 500 (600) State the significance of the brought down balance on EACH partner's current account. Yout answer QUESTION5-Prepare the Appropriation Account of The Sharks Bay Fishermen Cooperative Society