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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.

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
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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ACC 2000 Partnership & Corporation Assignment: Problem #8 Two Sole Proprietors Form a Partnership The business assets of Geron and Yumol appear below: Geron Yumol Cash 11,000 22,354 Accounts Receivable 234,536 567,890 Inventories 120,035 260,102 Land 603,000 Building 428,267 Furnitures and fixtures 50,345 34,789 Other Assets 2,000 3,600 Total 1,020,916 1,317,002 Accounts Payable Notes Payable 178,940 243,650 200,000 345,000 Geron, Capital Yumol, Capital 641,976 728,352 1,020,916 1,317,002 Geron and Yumol agreed to form a partnership contributing their assets and equities subject to the following adjustments: a. Accounts receivable of P20,000 in Geron's books and P35,000 in Yumol's are uncollectible. b. Inventories of P5,500 and P6,700 are worthless in Geron's and Yumol's respective books. C. Other assets of P2,000 for Geron and P3,000 for Yumol are tob e written 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.
Transcribed Image Text:ACC 2000 Partnership & Corporation Assignment: Problem #8 Two Sole Proprietors Form a Partnership The business assets of Geron and Yumol appear below: Geron Yumol Cash 11,000 22,354 Accounts Receivable 234,536 567,890 Inventories 120,035 260,102 Land 603,000 Building 428,267 Furnitures and fixtures 50,345 34,789 Other Assets 2,000 3,600 Total 1,020,916 1,317,002 Accounts Payable Notes Payable 178,940 243,650 200,000 345,000 Geron, Capital Yumol, Capital 641,976 728,352 1,020,916 1,317,002 Geron and Yumol agreed to form a partnership contributing their assets and equities subject to the following adjustments: a. Accounts receivable of P20,000 in Geron's books and P35,000 in Yumol's are uncollectible. b. Inventories of P5,500 and P6,700 are worthless in Geron's and Yumol's respective books. C. Other assets of P2,000 for Geron and P3,000 for Yumol are tob e written 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 & Corporation Assignment: Problem #8 Two Sole Proprietors Form a Partnership The business assets of Geron and Yumol appear below: Geron Yumol Cash 11,000 22,354 Accounts Receivable 234,536 567,890 Inventories 120,035 260,102 Land 603,000 Building 428,267 Furnitures and fixtures 50,345 34,789 Other Assets 2,000 3,600 Total 1,020,916 1,317,002 Accounts Payable Notes Payable 178,940 243,650 200,000 345,000 Geron, Capital Yumol, Capital 641,976 728,352 1,020,916 1,317,002 Geron and Yumol agreed to form a partnership contributing their assets and equities subject to the following adjustments: a. Accounts receivable of P20,000 in Geron's books and P35,000 in Yumol's are uncollectible. b. Inventories of P5,500 and P6,700 are worthless in Geron's and Yumol's respective books. C. Other assets of P2,000 for Geron and P3,000 for Yumol are tob e written 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.
Transcribed Image Text:ACC 2000 Partnership & Corporation Assignment: Problem #8 Two Sole Proprietors Form a Partnership The business assets of Geron and Yumol appear below: Geron Yumol Cash 11,000 22,354 Accounts Receivable 234,536 567,890 Inventories 120,035 260,102 Land 603,000 Building 428,267 Furnitures and fixtures 50,345 34,789 Other Assets 2,000 3,600 Total 1,020,916 1,317,002 Accounts Payable Notes Payable 178,940 243,650 200,000 345,000 Geron, Capital Yumol, Capital 641,976 728,352 1,020,916 1,317,002 Geron and Yumol agreed to form a partnership contributing their assets and equities subject to the following adjustments: a. Accounts receivable of P20,000 in Geron's books and P35,000 in Yumol's are uncollectible. b. Inventories of P5,500 and P6,700 are worthless in Geron's and Yumol's respective books. C. Other assets of P2,000 for Geron and P3,000 for Yumol are tob e written 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.
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