Partnership formation (2b) Two or more Sole Proprietor form a Partnership The business assets of Padilla and Bernado appear below: Padilla Вernardo Cash 11,000 22,000 Accounts Receivable 235,000 568,000 LInventories 120,000 260,000 Land 603,000 Building 428,000 Furniture and Fixture 51,000 35,000 Other Assets 2,000 5,000 Total 1,022,000 1,318,000 Accounts Payable 180,000 244,000 Notes Payable 200,000 345,000 Padilla, Capital 642,000 Bernardo, Capital 729,000 Total 1,022,000 1,318,000 Padilla ang Bernardo agreed to form a partnership contributing their assets and equitie and assuming their liabilites, subject to the following adjustments: a. Accounts Receivable of P20,000 in Padilla's books and P35,000 in Bernardo's are uncollectible. b. Inventories of P5,000 and P6,000 are worthless in Padilla's and Bernardo's respective books. c. Other Assets of P2,000 and P5,000 for Padilla and Bernardo are to be written off. Requried: Prepared journal entries for the formation of the Partnership as at July1, 2021. JOURNAL ENTRIES for the Partnership Date Particulars Debit Credit

Partnership formation (2b) Two or more Sole Proprietor form a Partnership The business assets of Padilla and Bernado appear below: Padilla Вernardo Cash 11,000 22,000 Accounts Receivable 235,000 568,000 LInventories 120,000 260,000 Land 603,000 Building 428,000 Furniture and Fixture 51,000 35,000 Other Assets 2,000 5,000 Total 1,022,000 1,318,000 Accounts Payable 180,000 244,000 Notes Payable 200,000 345,000 Padilla, Capital 642,000 Bernardo, Capital 729,000 Total 1,022,000 1,318,000 Padilla ang Bernardo agreed to form a partnership contributing their assets and equitie and assuming their liabilites, subject to the following adjustments: a. Accounts Receivable of P20,000 in Padilla's books and P35,000 in Bernardo's are uncollectible. b. Inventories of P5,000 and P6,000 are worthless in Padilla's and Bernardo's respective books. c. Other Assets of P2,000 and P5,000 for Padilla and Bernardo are to be written off. Requried: Prepared journal entries for the formation of the Partnership as at July1, 2021. JOURNAL ENTRIES for the Partnership Date Particulars Debit Credit

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

1. The following items are being invested by two sole proprietors, Diona and Diluc, to form DD Partnership: Agreed Values Investment by Investment by Diona Diluc Cash P 120,000 P 120,000 Inventory 120,000 Land 240,000 Building 480,000 Equipment 240,000 Mortgage on building assumed by the 240,000 partnership Required: Prepare journal entries to record the formation of partnership assuming that their capital credits will be the net assets to be invested in the partnership.
Accounting C and D form the CD, LLC even partnership. A contributed land with an adjusted basis of $50 and FMV of $100. D contributed equipment with an adjusted basis of $75 and FMV of $100. Immediately after this contribution, what is the balance in D's 704(b) capital account? $175 $75 $100 $50
Help me please
X and Y PartnershipX and Y are in partnership and divide profits and losses in the ratio of 2:1 respectively. Z was admitted as a partner on 1 March 2020. The new profit-sharing ratio between X, Y and Z will be 4:2:1 respectively.X AND Y PARTNERSHIPSTATEMENT OF FINANCIAL POSITION AT 29 FEBRUARY 2020RASSETSNon-current assetsProperty, plant and equipment 60 000Current assets 180 000Inventories 88 000Trade and other receivables 52 000Cash and cash equivalents 40 000Total assets 240 000EQUITY AND LIABILITIESCapital & Reserves 200 000Capital X 127 500Capital Y 67 500General Reserve 5 000Current liabilitiesTrade and other payables 40 000Total equity and liabilities 240 000Additional information:For the purpose of the change in ownership the following agreement was reached:1. Provision would be made for credit losses at 10% of the outstanding (carrying) amount of the accounts receivable.2. Inventories would be valued at R90 000.3. Land and buildings would be valued at the market value of…
X and Y PartnershipX and Y are in partnership and divide profits and losses in the ratio of 2:1 respectively. Z was admittedas a partner on 1 March 2020. The new profit-sharing ratio between X, Y and Z will be 4:2:1respectively.X AND Y PARTNERSHIPSTATEMENT OF FINANCIAL POSITION AT 29 FEBRUARY 2020RASSETSNon-current assetsProperty, plant and equipment 60 000Current assets 180 000Inventories 88 000Trade and other receivables 52 000Cash and cash equivalents 40 000Total assets 240 000EQUITY AND LIABILITIESCapital & Reserves 200 000Capital X 127 500Capital Y 67 500General Reserve 5 000Current liabilitiesTrade and other payables 40 000Total equity and liabilities 240 000Additional information:For the purpose of the change in ownership the following agreement was reached:1. Provision would be made for credit losses at 10% of the outstanding (carrying) amount of theaccounts receivable.2. Inventories would be valued at R90 000.3. Land and buildings would be valued at the market value of…
Required information [The following information applies to the questions displayed below.] Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance sheet of the MS Partnership at year-end is as follows: Cash Land Inventory Mary Scott Basis $ 60 60 72 $ 192 $ 96 96 $ 192 Fair Market Value $ 60 180 60 $ 300 $150 150 $300 At the end of the current year, Kari will receive a one-third capital interest only in exchange for services rendered. Kari's interest will not be subject to a substantial risk of forfeiture, and the costs for the type of services she provided are typically not capitalized by the partnership. For the current year, the income and expenses from operations are equal. Consequently, the only tax consequences for the year are those relating to the admission of Kari to the partnership. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.)
The following items are being invested by A and B to form AB Partnership Agreed Cash Inventory Land Building Equipment Total Mortgage on building assumed by the partnership Investment by A 120,000.00 120,000.00 240,000.00 480,000.00 480.000.00 Values Investment by B 120,000.00 240,000.00 480,000.00 840,000.00 240,000.00 600.000.00 REQUIRED: A. Prepare entries to record the formation of partnership assuming that A and B agree that each partner is to receive a capital credit equal to the agreed values of the net assets each partner invested. B. Prepare entities to record the formation of the partnership assuming that A and B agreed that each partner is to receive an equal capital investment.
Two Sole Proprietors Form a Partnership Calaguas and Dela Cruz formed a partnership and invested the following assets and liabilities: Calaguas: Fair Market Value Carrying Value Cash 300,000 300,000 Land 450,000 280,000 Dela Cruz: Cash 100,000 100,000 Building 600,000 520,000 Mortgage Payable 400,000 400,000 What is the opening journal entry in the books of the partnership?
The following accounts pertain to Ali and Basil partnership: cash 10000, non-cash assets 90000, liabilities 30000, Ali capital 50000 and Basil capital 20000. The income ration 3:2. The partnership was liquidated and non-cash assets were sold for 110000. The gain on realization will be charged to Ali capital is----- O a. 20000 O b. 25000 O c. 15000 O d. 12000
From the records of the DTA Partnership, *please refer on the image below a. P2,000; P200, respectively b. P5,000; P-0-, respectively c. P1,500; P1,000, respectively d. P-0-; P500, respectively
ASSESSMENT ACTIVITIES: PARTNERSHIP ACCOUNTING Activity 3: The partnership of Kobe and Lebron began business on January 2, 2021. Each partner confributed the following assets (the noncash assets are stated at their fair values on January 1, 2021: Cash Inventory Land Kobe P 600,000 800,000 -0- 1.000,000 Lebron P 500,000 LOUIS Equipment 1,300,000 -0- The land was subject to a P500,000 mortgage, which the partnership assumed on January 1, 2021. The equipment was subject to an installment notes payable that had an unpaid principal amount of P200,000 on January 1, 2021. The partnership also assumed this notes payable. Kobe and Lebron agreed to share partnership income and losses in the following manner: Interest on beginning capital balances Salaries Remainder Jenny 3% 120,000 Kenny 3% 120,000 60% 40% During 2021, the following events occurred: 1. Inventory was acquired at a cost P300,000. At December 31, 2021, the partnership owed P60,000 to its suppliers. 2. Principal of P50,000 was paid…
A and G executed a partnership agreement that lists the following assets contributed at the partnership's formation: A-cash, P22,000 and Furniture and Equipment P12,000: B-cash, P32,000 Inventory, P17,000 Building, P42.000, The building is subject to a mortgage of P8,000, which the partnership has assumed. The partnership agreement also specified that profits and losses are to be distributed equally. What amounts should be recorded as capital for A at the formation of the partnership?