4:31 P+ A2C3.pdf团:1. Red, white, and Blue form a partnership on May 1,2013. They agree that red will contribute officeequipment with a total fair value of P40,000; white will contribute delivery equipment with a fair valueof P80,000; and blue will contribute cash. If blue want one third interest in the capital and profits, heshould contribute the cash of?2.Elsa and Perla form a new partnership. Elsa invests P300,000 in cash for her 60 percent interest in thecapital and profits of the business. Perla contributes Land thatfair market value of P70,000, and a building that has tax basis ofP50,000 and a fair market value ofan original cost of P40,000 and aP90,000. The building is subject to a P40,000 mortgage that the partnership will assume. Whatamount of cash should Perla contribute?Reyes and Santos drafted a partnership agreement that list the following assets contributed at thepartnership formation:Contributed byReyesSantosCashP200,000P300,000Inventory150,000BuildingEquipment400,000150,000The building is subject to a mortgage of P100,000, which the partnership has assumed. Thepartnership agreement also specifies the profits and losses are to be distributed evenly.3.What amounts should be recorded as capital for Reyes at the formation of the partnership?What amounts should be recorded as capital for Santos at the formation of the partnership?4.5. On April 30, 2013, AA, BB and CC, formed a partnership by combining their separate businessproprietorship. AA contributed cash of P50,000. BB contributed Property with a P36,000 book value,a P40,000 original cost, and P80,000 fair value. The partnership accepted responsibility for theP35,000 mortgage attached to the property. CC contributed equipment with P30,000 book value, aP75,000 original cost and P55,000 fair value. The partnership agreement specifies that profits andlosses are to be shared equally but is silent regarding capital contributions. Which partners has thelargest April 30, 2013, capital balance?а. Аb. BBC. CCd. All capital account balances are equal.6. Maria and Nora entered into a partnership on March 1, 2013 by investing the following assets:II

Partnership is defined as the formal contract or agreement among two or more than two parties who…

Red, white, and Blue form a partnership on May 1,2013. They agree that red will contribute office equipment with a total fair value of P40,0003; white will contribute delivery equipment with a fair value of P80,000; and blue will contribute cash. If blue want one third interest in the capital and profits, he should contribute the cash of?

Red, white, and Blue form a partnership on May 1,2013. They agree that red will contribute office equipment with a total fair value of P40,0003; white will contribute delivery equipment with a fair value of P80,000; and blue will contribute cash. If blue want one third interest in the capital and profits, he should contribute the cash of?

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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Please answer properly
Can you make a solution for these? The right answer for Rod and Sol is 420,000. Thanks!