COLLEGE ACCOUNTING, CHAPTERS 1-27 2T
COLLEGE ACCOUNTING, CHAPTERS 1-27 2T
22nd Edition
ISBN: 9781305930377
Author: HEINTZ
Publisher: CENGAGE L
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Chapter 26, Problem 3TF
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PROBLEM 1: Individuals with No Existing Business Form a Partnership On February 1, 2025, Froilan Labausa contributed land, inventory, and P280,000 cash to a partnership. The land has a book value of P650,000 and a market value of P1,350,000. The inventory has a book value of P600,000 and a market value of P510,000. The partnership also assumed a P350,000 note payable owed by Labausa that was used to purchase the land. Rosalie Balhag agreed to put up cash equivalent to Labausa's net investment. Required: 1. Prepare the journal entry to record Labausa's and Balhag's investment in the partnership. 2. Prepare the statement of financial position (balance sheet) of the partnership as of February 1, 2025. PROBLEM 2: A Sole Proprietor and an Individual with No Business Form a Partnership Espanol operated a specialty shop that sold fishing equipment and accessories. Her post-closing trial balance on Dec. 31, 2024 is as follows: Cash Fish Post-Closing Trial Balance December 31, 2024 Accounts…
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COLLEGE ACCOUNTING, CHAPTERS 1-27 2T

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