The following account balances were taken from the books of Aztra, a sole proprietor before admitting Nica to form a partnership. Accounts Receivable Php 50,000 Allowance for bad debts 1,000 Equipment 60,000 Accum. Depreciation – Equipment 20,000 Notes Payable 30,000 Aztra, Capital 59,000 Aztra admits Nica as a partner in the partnership with a total agreed capitalization of Php 200,000. Nica contributes cash that will give her 50% claim in the partnership. Aztra is to invest additional cash after the partnership’s assets and liabilities are to be adjusted per agreement as follows: The realizable amount of accounts receivable is Php 45,000. The equipment is to be stated at its depreciated value of Php 34,000. Accrued interest on notes payable should be recognized, Php 1,000. Required: Adjusting entries Journal entries to record the investment of Aztra and Nica in the partnership books.
The following account balances were taken from the books of Aztra, a sole proprietor before admitting Nica to form a partnership.
Allowance for
Equipment 60,000
Accum. Depreciation – Equipment 20,000
Notes Payable 30,000
Aztra, Capital 59,000
Aztra admits Nica as a partner in the partnership with a total agreed capitalization of
Php 200,000. Nica contributes cash that will give her 50% claim in the partnership. Aztra is to invest additional cash after the partnership’s assets and liabilities are to be adjusted per agreement as follows:
- The realizable amount of accounts receivable is Php 45,000.
- The equipment is to be stated at its
depreciated value of Php 34,000. - Accrued interest on notes payable should be recognized, Php 1,000.
Required:
Adjusting entries - Journal entries to record the investment of Aztra and Nica in the partnership books.
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