Problem 1. April invited May and June to join her in a partnership to be called Calendar Girls. The following were agre upon: a) May is to invest sports equipment costing P195,000 with accumulated depreciation of P25,000. The current marl value is P150,000. b) June is to invest land with an appraised value of P350,000. There is an attached mortgageto this which will be assum by the partnership amounting to P130,000. c) April is investing her Slim Saloon, except forthe cash, consisting of the following: Cash P10,000 Accounts receivable 30,000 Furniture and equipment 320,000 Accumulated depreciation 15,000 Accounts payable 15,000 10% of the accounts receivable is doubtful of collection. The furniture and equipment have a present market valu of P300,000. What are the partners' capital balances just after the formation? 28. April, capital 29. May, capital 30. June, capital 31. What is the amount of the total current assets of the partnership immediately after formation? 32. What is the amount of the total assets of the partnership immediately after formation? 33. What is the amount of the total liabilities of the partnership immediately after formation?

Problem 1. April invited May and June to join her in a partnership to be called Calendar Girls. The following were agre upon: a) May is to invest sports equipment costing P195,000 with accumulated depreciation of P25,000. The current marl value is P150,000. b) June is to invest land with an appraised value of P350,000. There is an attached mortgageto this which will be assum by the partnership amounting to P130,000. c) April is investing her Slim Saloon, except forthe cash, consisting of the following: Cash P10,000 Accounts receivable 30,000 Furniture and equipment 320,000 Accumulated depreciation 15,000 Accounts payable 15,000 10% of the accounts receivable is doubtful of collection. The furniture and equipment have a present market valu of P300,000. What are the partners' capital balances just after the formation? 28. April, capital 29. May, capital 30. June, capital 31. What is the amount of the total current assets of the partnership immediately after formation? 32. What is the amount of the total assets of the partnership immediately after formation? 33. What is the amount of the total liabilities of the partnership immediately after formation?

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

Fill in the blnnks: Tim and Michelle have decided to form a partnership with a 60/40 partnership interest ratio. Tim contributes P7500 cash and merchandise invetory with a market value of P1500. a. Tim, Capital will be credited in the amount of b. Michelle's investment should be c. After accounting for the total investments of Tim and Michelle, the total assets of the partnership amounts to
April invited May and June to join her in a partnership to be called Calendar Girls. The following were agreed upon: a) May is to invest sports equipment costing P195,000 with accumulated depreciation of P25,000. The current market value is P150,000. b) June is to invest land with an appraised value of P350,000. There is an attached mortgage to this which will be assumed by the partnership amounting to P130,000. c) April is investing her Slim Saloon, except for the cash, consisting of the following: Cash P10,000 Accounts receivable 30,000 Furniture and equipment Accumulated depreciation Accounts payable 320,000 15,000 15,000 10% of the accounts receivable is doubtful of collection. The furniture and equipment has a present market value of P300,000. What is June's capital balance just after the formation? What is the amount of the total current assets of the partnership immediately after formation? What is the amount of the total partners' equity of the partnership immediately after…
1. On January 1, 20x1, Mr. A and Ms. B formed a partnership. Mr. A contributed cash of P500,000 while Ms. B contributed a building with carrying amount of P400,000 and fair value of P800,000. The building has an unpaid mortgage of P200,000 which is not assumed by the partnership. Requirement: Provide the journal entry to record the contributions of the partners. Option 1 Clear selection
April invited May and June to join her in a partnership to be called Calendar Girls. The following were agreed upon: a) May is to invest sports equipment costing P195,000 with accumulated depreciation of P25,000. The current market value is P150,000. b) June is to invest land with an appraised value of P350,000. There is an attached mortgage to this which will be assumed by the partnership amounting to P130,000. c) April is investing her Slim Saloon, except for the cash, consisting of the following: Cash P10,000 Accounts receivable 30,000 Furniture and equipment Accumulated depreciation 15,000 Accounts payable 320,000 15,000 10% of the accounts receivable is doubtful of collection. The furniture and equipment has a present market value of P300,000. What is April's capital balance just after the formation? What is the amount of the total liabilities of the partnership immediately after formation? What is the amount of the total assets of the partnership immediately after formation? What…
Andy and Amy agree to form a partnership with Andy investing the following: Land (with mortgage note) Cost - P1,500,000 Market Value - P3,500,000 Building Cost - P5,000,000 Market Value - P2,500,000 Accumulated Depreciation Cost - P1,500,000 Amy will invest cash equal to half of Andy's investment. There is a PNB note of P1, 200, 000 which will be assumed by the partnership. Give two journal entries to record the investments of the partner.
Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $6,200 and a fair market value of $10,000. Kelsey will invest a building with a book value of $32,300 and a fair market value of $60,900. What amount will be recorded to Kelsey's capital account? Oa. $10,000 Ob. $32,300 Oc. $60,900 O d. $6,200
Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $4,900 and a fair market value of $16,500. Kelsey will invest a building with a book value of $35,500 and a fair market value of $76,900. What amount will be recorded to Sandra's capital account? Oa. $35,500 Ob. $16,500 O c. $76,900 O d. $4,900
On January 1, 2022, A and B decided to form a partnership by contributing their respective assets and equities subject to adjustments. Cash Accounts Receivable Building A 50,000 20,000 520,000 B 40,000 10,000 30,000 Computer Equipment An Allowance for Doubtful Accounts of 3% of accounts receivable is set up for each partner, and a mortgage of P30,000 is assumed from building contribution. Compute the adjusted capital account of A after the formation.
A partner invests into a partnership a building with a P25,000 carrying value and P40,000 fair market value. The related mortgage payable of P12,500 is assumed by the partnership. The entry to record the investment in partnership is: a. Building Mortgage Payable Capital b. Building Mortgage Payable Capital c. Capital O A O B O C O D Mortgage Payable Building d. Capital Mortgage Payable Building 40,000 25,000 25,000 40,000 12,500 12,500 12,500 27,500 12,500 27,500 12,500 12,500
Numbers 6-10 (Bonus Method Vs. Invest or Withdraw Method) On January 1, 2023, Thanos and Helga formed a partnership with each contributing the following assets: Cash Machinery and equipment Building Furniture and fixtures A. B. C. D. The building is subject to a mortgage loan of P800,000, which is to be assumed by the partnership. The partnership agreement provides that Thanos and Hela share profits and losses in a 30:70 ratio: 6. How much is the capital balance of Thanos and Hela, respectively? Thanos A. B. C. D. 650,000 2,900,000 650,000 650,000 A. B. C. D. 650,000 650,000 A. B. C. D. 7. Assuming that the mortgage loan is not assumed by the partnership, how much is the capital balance of Thanos and Hela, respectively? Thanos 605,000 1,065,000 Thanos 1,065,000 650,000 605,000 1,065,000 Hela 2,900,000 Thanos 300,000 250,000 650,000 3,700,000 1,516,667 8. Disregarding the second question and assuming that the partnership agreement states that the capital credit of Thanos and Hela shall…
Ma1. Nina and Sue form an equal partnership during the current year. They agree to share profits and losses equally. Nina contributes cash of $100,000 and Sue contributes property (A/B of $80,000, FMV of $100,000) subject to a recourse debt of $50,000 which the partnership will assume. a. Is any gain or loss recognized on the formation of the partnership? b. What basis do the partners have in their partnership interest after the formation?
4. Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnership's formation: Contributed by Roberts Smith $20,000 $30,000 15,000 40,000 Cash Inventory Building Furniture & Equipment 15,000 The building is subject to a mortgage of $10,000, which the partnership has assumed. The partnership agreement also specifies that profits and losses are to be distributed evenly. What amounts should be recorded as capital for Roberts and Smith at the formation of the partnership? Roberts Smith $35,000 $85,000 $35,000 $75,000 $55,000 $55,000 $60,000 $60,000 а. b. с. d.