EXERCISE 9. Journal Entries: Admission by investment of assets. The real accounts in the ledger of Chua-Tay Partnership showed the followingbalances before the admission of Melan to the partnership:CashP 60,000Accounts Receivable70,000Merchandise Inventory55,000Machinery120,000Accumulated Depreciation - Machinery21,600Accounts Payable40,000Income Taxes Payable35,000Notes Payable65,000| Chua, Capital (50%)58,400Tay, Capital (50%)85,000Additional information:• The parties agreed to revalue the following: (a) Accounts Receivable at 85%; (b) Merchandise Inventory at 110%; and (c) Machinery at 90%.• They also agreed that additional interest of P3,500 on notes payable be accrued.• Melan was to contribute P140,000. It was agreed that after the admission of Melan, all partners' capital balances would equal to the contribution ofMelan. Any partner whose capital balance would be below the threshold should contribute additional cash to the partnership.Prepare and upload journal entries related to the following:1. Revaluation and accrual of interest;2. Admission of Melan; and3. Additional contribution of existing partners, if there is any.

Journal entries related to revaluation and accrual of interest When a new partner is admitted, we…

Answered: Prepare and upload journal entries…

Prepare and upload journal entries related to the following: 1. Revaluation and accrual of interest; 2. Admission of Melan; and 3. Additional contribution of existing partners, if there is any.

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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