Tina, Lou and Lena are partners sharing profits and losses in the ratio of 2:2:1 and hae capital balances of P400,000, P400,000 and P200,000, respectively. The following independent situations are given to you: a) Rod purchases half of Lena's interest, paying her directly for an amount that eamet for her a profit of P50,000. b) Rod pays P240,000 directly to the partners for a one-fourth share of the partnership. c) Rod pays P100,000 directly to Tina for one third of her share in the partnership Partners agree that it is time to revalue the assets of the partnership using as a basis the amount Rod is willing to pay. Direction: a. How much did Rod pay Lena in situation a? Record the admission of Rod. b. How much is the gain or loss of the partners in situation b? Record Rod's admission. c. How much should the asset revaluation be in situation c? Make two entries and prepare a revised partners' equity.
Tina, Lou and Lena are partners sharing profits and losses in the ratio of 2:2:1 and hae capital balances of P400,000, P400,000 and P200,000, respectively. The following independent situations are given to you: a) Rod purchases half of Lena's interest, paying her directly for an amount that eamet for her a profit of P50,000. b) Rod pays P240,000 directly to the partners for a one-fourth share of the partnership. c) Rod pays P100,000 directly to Tina for one third of her share in the partnership Partners agree that it is time to revalue the assets of the partnership using as a basis the amount Rod is willing to pay. Direction: a. How much did Rod pay Lena in situation a? Record the admission of Rod. b. How much is the gain or loss of the partners in situation b? Record Rod's admission. c. How much should the asset revaluation be in situation c? Make two entries and prepare a revised partners' equity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Tina, Lou and Lena are partners sharing
The following independent situations are given to you:
(see attached image for the given. please answer it based on your knowledge. thank you so much)
Direction:
a. How much did Rod pay Lena in situation a? Record the admission of Rod.
b. How much is the gain or loss of the partners in situation b? Record Rod's admission
c. How much should the asset revaluation be in situation c? Make two entries and prepare a revised partners equity.
Transcribed Image Text:agréemen
2. Tina, Lou and Lena are partners sharing profits and losses in the ratio of 2:2:1 and ha
capital balances of P400,000, P400,000 and P200,000, respectively.
The following independent situations are given to you:
a) Rod purchases half of Lena's interest, paying her directly for an amount that earmet
for her a profit of P50,000.
b) Rod pays P240,000 directly to the partners for a one-fourth share of the partnership.
c) Rod pays P100,000 directly to Tina for one third of her share in the partnershin.
Partners agree that it is time to revalue the assets of the partnership using as a basis
the amount Rod is willing to pay.
Direction:
How much did Rod pay Lena in situation a? Record the admission of Rod.
b. How much is the gain or loss of the partners in situation b? Record Rod's admission.
How much should the asset revaluation be in situation c? Make two entries and
prepare a revised partners' equity.
a.
C.
000
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