Problem 3-14Goodwill and Bonus MethodsThe ST Partnership was formed by Saling and Taling, who contributedtangible assets with the following fair values:Agreed valueP70,00010,00080,000SalingP50,00012,000TalingP20,000CashFurnitureComputer100,000The amount of P5,000 is owed for the furniture and the amount of P50,000 isowed for the computer. The partnership assumes both liabilities.Required: Prepare the partnership formation entry assuming that thepartners' capital balances are to be equal usinga. Goodwill method.b. Bonus method.

Partnership - A partnership is a type of business that permits two or more people to co-own a firm…

The ST Partnership was formed by Saling and Taling, who c tangible assets with the following fair values: Cash Furniture Computer Saling P50,000 12,000 Taling P20,000 a. Goodwill method. b. Bonus method. Agre 100,000 The amount of P5,000 is owed for the furniture and the amount of owed for the computer. The partnership assumes both liabilities. Required: Prepare the partnership formation entry assuming partners' capital balances are to be equal using

The ST Partnership was formed by Saling and Taling, who c tangible assets with the following fair values: Cash Furniture Computer Saling P50,000 12,000 Taling P20,000 a. Goodwill method. b. Bonus method. Agre 100,000 The amount of P5,000 is owed for the furniture and the amount of owed for the computer. The partnership assumes both liabilities. Required: Prepare the partnership formation entry assuming partners' capital balances are to be equal using

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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Partner capital accounts upon formation of partnership-Goodwill Method Assume that two individuals agree to form a partnership. Partner A is contributing an operating business that reports net assets of $30,000. Partner B is contributing cash of $45,000. The partners agree that the initial capital of the partnership should be shared equally. What will be the initial balance of the Capital Accounts of the partners assuming that the partners wish to employ the Goodwill Method? Select one: a. Partner A Partner B $90,000 $90,000 b. Partner A Partner B $37,500 $37,500 c. Partner A Partner B $45,000 $45,000 d. Partner A Partner B $30,000 $45,000
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Problem-solving Admissionby Purchase of Interest or Investment of AssetsAngeles. Bondoc and Campos have equities in a partnership as follows: Angeles 300,000 Bondoc 750,000 Campos 700.000 and share of profits and losses in a ration of 5.3.2, respectively. The partners have agreed to admit Dantes to the partnership REQUIRED Prepare the journal entries to record the admission of Dantes to the partnership under each of the following assumptions.1. Dantes paid Angeles P450.000 for his full interest 2. Dantes invested P500,000 for a 25% interest, and bonus is recorded for Dantes 3 Dantes invested P600,000 for a 20% interest, and bonus is recorded for the old partners.
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answer letter d, e, and f. provide as well the solution/explanation. thank you!