Two sole proprietors, L and M, agreed to form a partnership on January 1, 20x4. The trial balance for each proprietor is shown below as of January 1, 20x4. L M Book Value Fair Value Book Value Fair Value Cash.. P 40,000 P 40,000 P 30,000 P 30,000 Accounts receivable (net). 60,000 52,000 70,000 56,000 Merchandise inventory 100,000 94,000 100,000 114,000 Building (net)..... 280,000 320,000 250,000 280,000 Furniture and Fixture (net).. 60,000 64,000 40,000 44,000 Accounts Payable... 110,000 110,000 80,000 80,000 Mortgage Payable. 200,000 200,000 150,000 150,000 L, Capital. 230,000 M, Capital 260,000 The LM partnership will take over the assets and assume the liabilities of the proprietor as of January 1, 20x4.

Two sole proprietors, L and M, agreed to form a partnership on January 1, 20x4. The trial balance for each proprietor is shown below as of January 1, 20x4. L M Book Value Fair Value Book Value Fair Value Cash.. P 40,000 P 40,000 P 30,000 P 30,000 Accounts receivable (net). 60,000 52,000 70,000 56,000 Merchandise inventory 100,000 94,000 100,000 114,000 Building (net)..... 280,000 320,000 250,000 280,000 Furniture and Fixture (net).. 60,000 64,000 40,000 44,000 Accounts Payable... 110,000 110,000 80,000 80,000 Mortgage Payable. 200,000 200,000 150,000 150,000 L, Capital. 230,000 M, Capital 260,000 The LM partnership will take over the assets and assume the liabilities of the proprietor as of January 1, 20x4.

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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