(Two Sole Proprietors Form a Partnership; New Books are to be openenfor the Partnership)Partners Abada and Albano agreed to combine their businesses into a partnership. Thestatement of financial position accounts of Abada and Albano are shown below.ALBANOAgreedValueABADAВookAgreedValueBookValueValueP 50.000 P 70,000 P 70,000490,00050,000CashP 50,000Accounts Receivable490,000460,00040,000460,000Allowance for Uncollectible30,00040,000AccountsMerchandise InventoryEquipmentAccumulated DepreciationFurniture and Fixtures900,000180,00036,000720,00090,0009,000700,00070,000950,000120,000120,00024,000540,00090,000Accumulated DepreciationAccounts Payable540,000360,000360,000Instructions: Give the journal entries to record the partnership formation under each of thefollowing independent assumptions:1.A new set of books are to be opened for the partnership2.The books of Abada are to be used by the partnership

Answer:- Partnership is one of the form of business organisation, under which two or more than two…

(Two Sole Proprietors Form a Partnership; New Books are to be openen for the Partnership) Partners Abada and Albano agreed to combine their businesses into a partnership. The statement of financial position accounts of Abada and Albano are shown below. ALBANO Agreed Value ABADA Book Agreed Value Book Value Value P 70,000 490,000 50,000 Cash P 50,000 P 50,000 P 70,000 Accounts Receivable Allowance for Uncollectible 460,000 460,000 490,000 30,000 40,000 40,000 Accounts 700,000 Merchandise Inventory Equipment Accumulated Depreciation Furniture and Fixtures 720,000 90,000 9,000 950,000 120,000 900,000 180,000 70,000 36,000 120,000 24,000 540,000 90,000 Accumulated Depreciation Accounts Payable 540,000 360,000 360,000 Instructions: Give the journal entries to record the partnership formation under each of the following independent assumptions: 1. A new set of books are to be opened for the partnership 2. The books of Abada are to be used by the partnership

(Two Sole Proprietors Form a Partnership; New Books are to be openen for the Partnership) Partners Abada and Albano agreed to combine their businesses into a partnership. The statement of financial position accounts of Abada and Albano are shown below. ALBANO Agreed Value ABADA Book Agreed Value Book Value Value P 70,000 490,000 50,000 Cash P 50,000 P 50,000 P 70,000 Accounts Receivable Allowance for Uncollectible 460,000 460,000 490,000 30,000 40,000 40,000 Accounts 700,000 Merchandise Inventory Equipment Accumulated Depreciation Furniture and Fixtures 720,000 90,000 9,000 950,000 120,000 900,000 180,000 70,000 36,000 120,000 24,000 540,000 90,000 Accumulated Depreciation Accounts Payable 540,000 360,000 360,000 Instructions: Give the journal entries to record the partnership formation under each of the following independent assumptions: 1. A new set of books are to be opened for the partnership 2. The books of Abada are to be used by the partnership

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The LM partnership will take over the assets and assume the liabilities of the proprietor as of January 1, 20x4 Determine the total assets after the formation of the partnership.
A and B enter into a partnership agreement contributing their respective business' assets at fair market values: Cash Accounts Receivable Machinery and Equipment Land A 60,000 200,000 120,000 B 200,000 430,000 Additional information: An Allowance for Doubtful Accounts of 2% of accounts receivable is to be set up; . The land is subject to a mortgage loan of P24,000 which the partnership will assume. The partnership agreement states that A and B share profits and losses, 40% and 60%, respectively, and partners agreed to bring their capital balances in proportion to the profit and loss ratio. Compute the amount of bonus that should be given to one partner.
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
2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. Q2. How much did See receive in the liquidation? a. 0 b. 3,000 c. 5,000 d. 15,000
2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. 1. How much was the loss on realization? a. 50,000 b. 60,000 c. 70,000 d. 80,000
On June 1, 20x10, HEAD and ACHE decided to form a partnership contributing their existing businesses. The following is taken form their trial balance: HEAD ACHE Cash 250,000 150,000 Receivables (net) 100,000 80,000 Inventory 125,000 150,000 500,000 400,000 Fixed Assets (net) Liabilities 250,000 250,000 The partners agreed on the following: 1. P50,000 of HEAD'S cash represents converted foreign currencies amounting to FC1,000 on December 31, 20x9. The current spot rate of FC1 is equivalent to P53. 2. The receivables of HEAD and ACHE, currently have a net realizable value of 80% it is agreed that their net realizable value must be adjusted to 75%. 3. HEAD's inventory has a NRV of P140,000 and could be currently sold for P200,000. HEAD's machine was purchased last year with a 5-year life. It's estimated current value is 90% of its cost. 5. ACHE's fixed asset has an 80% condition percentage. If bought brand new, its price would be P550,000. 6. The partners are to share in profits and…
The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively: Cash Other assets Hardwick, loan Total assets $ 93,000 815,000 44,000 Beginning balances Sold assets $952,000 Accounts payable Ferris, loan Hardwick, capital Saunders, capital Ferris, capital Adjusted balances Max loss on remaining noncash assets Paid liabilities Safe payments Total liabilities and capital The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $125,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.) HARDWICK, SAUNDERS, AND FERRIS Proposed Schedule of Liquidation Cash Other Assets $ 48,000 54,000 380,000 240,000 230,000 $952,000 Accounts Payable Hardwick, Loan and Capital Saunders, Capital Ferris, Loan & Capital
Please do not give solution in image format ?
A and B are combining their separate businesses to form a partnership. Presented here are the Statements of Financial Position before any adjustments: Current Assets Non-current Assets Total Liabilities ● A 617,500 848,000 150,000 B 672,500 970,000 178,000 They agreed to set up P5,000 each as uncollectible accounts on their accounts receivable. They also found out that their Non-current assets (all depreciable assets) were under-depreciated by P80,000 each. The partners agreed to equalize their capital balance upon formation. Compute the total capital of the partnership.
blanaces of accounts for M&M partnership are cash 34000 account payable (27000) loan to Matter (7000) Matter capital 8000 Mansour capital (8000) avaliable cash should distributed as follows after payment 25000 to account payables: ○ A. 7000 to Mansour O B. 7000$ for loan of Matter O c. $3500 each to Matter and Mansour OD. 1000 to Matter and 7000 to Mansour
2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. Q3. How much additional investment did Chap make? a. 10,000 b. 14,000 c. 15,000 d. 20,000