ACC 2000 Partnership & CorporationAssignment: Problem #8Two Sole Proprietors Form a PartnershipThe business assets of Geron and Yumol appear below:GeronYumolCash11,00022,354Accounts Receivable234,536567,890Inventories120,035260,102Land603,000Building428,267Furnitures and fixtures50,34534,789Other Assets2,0003,600Total1,020,9161,317,002Accounts PayableNotes Payable178,940243,650200,000345,000Geron, CapitalYumol, Capital641,976728,3521,020,9161,317,002Geron and Yumol agreed to form a partnership contributing their assets and equitiessubject to the following adjustments:a.Accounts receivable of P20,000 in Geron's books and P35,000 in Yumol'sare uncollectible.b.Inventories of P5,500 and P6,700 are worthless in Geron's and Yumol'srespective books.C.Other assets of P2,000 for Geron and P3,000 for Yumol are tob ewritten off.Required:1. Prepare the journal entries for the formation of the Partnership at at July 1.2. Prepare the Statement of Financial Position for the new Partnership. ACC 2000 Partnership & CorporationAssignment: Problem #8Two Sole Proprietors Form a PartnershipThe business assets of Geron and Yumol appear below:GeronYumolCash11,00022,354Accounts Receivable234,536567,890Inventories120,035260,102Land603,000Building428,267Furnitures and fixtures50,34534,789Other Assets2,0003,600Total1,020,9161,317,002Accounts PayableNotes Payable178,940243,650200,000345,000Geron, CapitalYumol, Capital641,976728,3521,020,9161,317,002Geron and Yumol agreed to form a partnership contributing their assets and equitiessubject to the following adjustments:a.Accounts receivable of P20,000 in Geron's books and P35,000 in Yumol'sare uncollectible.b.Inventories of P5,500 and P6,700 are worthless in Geron's and Yumol'srespective books.C.Other assets of P2,000 for Geron and P3,000 for Yumol are tob ewritten off.Required:1. Prepare the journal entries for the formation of the Partnership at at July 1.2. Prepare the Statement of Financial Position for the new Partnership.

The assets contributed by partners are recorded under the entity concept of accounting.

Answered: Required: 1. Prepare the journal…

Required: 1. Prepare the journal entries for the formation of the Partnership at at July 1. 2. Prepare the Statement of Financial Position for the new 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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