Problem 3-13 A's single Proprietorship has the following balances: Cash Noncash assets Accounts payable P10,000 90,000 25,000 B is invited to invest P125,000 to convert the sole proprietorship into partnership. The noncash assets of the sole proprietorship are fairly valued. A and B agreed that their respective capital balances would be 40% and 60% of the total partnership capitalization. Required: Prepare the journal entries to record the investments of A and B under: a. Bonus method. b. Goodwill method (total partner capital to be based on partner B).

Problem 3-13 A's single Proprietorship has the following balances: Cash Noncash assets Accounts payable P10,000 90,000 25,000 B is invited to invest P125,000 to convert the sole proprietorship into partnership. The noncash assets of the sole proprietorship are fairly valued. A and B agreed that their respective capital balances would be 40% and 60% of the total partnership capitalization. Required: Prepare the journal entries to record the investments of A and B under: a. Bonus method. b. Goodwill method (total partner capital to be based on partner B).

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 1RP

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