Rosa and Linda agreed to form a partnership on June 15, 2012 for the purpose of manufacturing and selling custom silver jewelry. Both are master crafters and have their own tools and equipment, which they will invest in the business. Rosa and Linda determined that their tools and equipment have fair market values of P90,000 and P120,000, respectively. They further resolved to invest sufficient cash such that each partner will have a beginning capital balance equal to P250,000. How much will be the total cash of the newly formed partnership?

Rosa and Linda agreed to form a partnership on June 15, 2012 for the purpose of manufacturing and selling custom silver jewelry. Both are master crafters and have their own tools and equipment, which they will invest in the business. Rosa and Linda determined that their tools and equipment have fair market values of P90,000 and P120,000, respectively. They further resolved to invest sufficient cash such that each partner will have a beginning capital balance equal to P250,000. How much will be the total cash of the newly formed partnership?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 1MP

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