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Two Sole Proprietors form a Partnership Calaguas and Dela Cruz formed a partnership and invested the following assets liabilities:                Fair market value Carrying Value Calaguas: Cash                   300,000            300,000 Land                    450,000           280,000 Dela Cruz: Cash.                   100,000         100,000 Building                  600,00          520,000 Mortgage Payable (400,000)   (400,000) The partners will share profits and losses equally. Required: Prepare the opening journal entry in the books of the partnership.

Two Sole Proprietors form a Partnership Calaguas and Dela Cruz formed a partnership and invested the following assets liabilities:                Fair market value Carrying Value Calaguas: Cash                   300,000            300,000 Land                    450,000           280,000 Dela Cruz: Cash.                   100,000         100,000 Building                  600,00          520,000 Mortgage Payable (400,000)   (400,000) The partners will share profits and losses equally. Required: Prepare the opening journal entry in the books of the 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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Problem #4 Two Sole Proprietors form a Partnership

Calaguas and Dela Cruz formed a partnership and invested the following assets liabilities:

               Fair market value Carrying Value

Calaguas:

Cash                   300,000            300,000

Land                    450,000           280,000

Dela Cruz:

Cash.                   100,000         100,000

Building                  600,00          520,000

Mortgage Payable (400,000)   (400,000)

The partners will share profits and losses equally.

Required:

Prepare the opening journal entry in the books of the partnership.

 

 

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