Sabio, as her original investment in the firm of Sabio and Mariano, contributed equipment that had been recorded in the books of her own business as costing P900,000 with accumulated depreciation of P620,000.The partners agreed on a valuation of P400,000.They also agreed to accept Sabio's accounts receivable of P360,000,realizable to the extent of 85%. Required: Prepare a joirnal entry to record Sabio's Investment in the partnership on June 13.

Sabio, as her original investment in the firm of Sabio and Mariano, contributed equipment that had been recorded in the books of her own business as costing P900,000 with accumulated depreciation of P620,000.The partners agreed on a valuation of P400,000.They also agreed to accept Sabio's accounts receivable of P360,000,realizable to the extent of 85%. Required: Prepare a joirnal entry to record Sabio's Investment in the partnership on June 13.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 14E

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Problem 3 Formation of a Partnership Sabio, as her original investment in the firm of Sabio and Mariano, contributed equipment that had been recorded in the books of her own business as costing P900,000, with accumulated depreciation of P620,000. The partners agreed on a saluation of P400,000. They also agreed to accept Sabio's accounts receivable of P360,000, realizable to the extent of 85%. Required Prepare the journal entry to record Sabio's investment in the partnership on June 13.
Problem #3 Admission by Investment of Assets After the tangible assets have been adjusted to fair values, the capital accounts of Rey Refozar and Rogelio Ceradoy have balances of P75,000 and P125,000, respectively. Elmer Dimayuga is to be admitted to the partnership, contributing P50,000 cash to the partnership, for which he is to receive equity of P65,000. All partners share equally in profit. Required: 1. Prepare the journal entry to record the admission of Dimayuga who is to receive a bonus of P15, 000. 2. Calculated the capital balance of each partner after the admission of the new partner.
Problem #4 Formation of a Partnership Gogola and Paglinawan have just formed a partnership. Gogola contributed cash of P1,260,000 and computer equipment that cost P540,000. The fair value of the computer is P360,000. Gogola has notes payable on the computer of P120,000 to be assumed by the partnership. Gogola is to have 60% capital interest in the partnership. Paglinawan contributed only P900,000. The partners agreed to share profit and loss equally. Gogola should make an additional investment or (withdrawal) of
Problem #3 Formation of Partnership. Gogola and Paglinawan have just formed a partnership.Gogola contributed cash of P1,260,000 and a computer equipment that cost P540,000.The fair value of the computer is P360,000.Gogola has notes payable on the computer of P120,000 to be assumed by the partnership.Gogola is to have 60% capital interest in the partnership.Paglinawan contributed only P900,000.The partners agreed to share a profit and loss equally. Gogola should make an additional investment (withdrawal) of
Problem #2 Admission by Purchase of Interest and Investment of Assets The capital accounts of Loida Cardenas and Christian San Jose have balances of P150,000 and P110,000, respectively. Daria Labalan and Helen Magada are to be admitted to the partnership. Labalan buys one- fifth of Cardenas'interest for P35,000 and one-fourth of San Jose's interest for P25,000. Magada contributes P70,000 cash to the partnership, for which she is to receive ownership equity of P70,000. Required: 1. Journalize the entries to record the admission of Labalan and Magada. 2. What are the capital balances of each partner after the admission of the new partners?
Formation of a Partnership Sabio, as her original investment in the firm of Sabio and Mariano, contributed equipment that had been recorded in the books of her own business as costing Php900,000, with accumulated depreciation of Php620,000. The partners agreed on a valuation of P400,000. They also agreed to accept Sabio's accounts receivable of Php360,000, realizable to the extent of 85%. What is the journal entry to record Sabio's investment in the partnership on June 13?
Problem #4 Admission by Investment of Assets Dapun, Boyo, and Dino have equities in a partnership of P600,000, P900,000, and P500,000, respectively, and share profits and losses in a ratio of 2:1:2, respectively. The partners have agreed to admit Amolo to the partnership. Required: Prepare the journal entries to record the admission of Amolo to the partnership under each of the following assumptions: 1. Amolo invested P500,000 for a 30% interest, and bonus is recorded for Amolo. 2. Amolo invested P750,000 for a one-fifth interest, and bonus is recorded for the old partners.
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Problem #12 Admission by Investment of Assets Magdaraog and Mercado are partners in Magdaraog and Mercado Partnership with capital balances of P550,000 and P350,000, respectively; they share income and loss in the ratio 1:3, respectively. The partners are considering the admission of San Pedro. Required: Prepare the entries to record the admission of San Pedro under each of the following independent situations: 1. San Pedro invested P100,000 cash in the partnership for a one-tenth interest. The net assets of the partnership are fairly valued. 2. San Pedro invested P140,000 cash in the partnership for a one-eight interest. Assets of the partnership are fairly valued except for equipment, which is undervalued by P80,000. Net assets of the partnership are to be revalued and San Pedro is to be admitted. 3. San Pedro is to receive a one-tenth interest in the partnership upon investing P180,000 cash. Net assets of the partnership are fairly valued. San Pedro is to be admitted using the bonus…
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Problem #1 Partner's Original Investment 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: Prepare the journal entry to record Labausa's and Balhag's investment in the partnership.
Problem 7 Admission by Investment of Assets (Incentive Activity) Partners Pilapil and Pastor sell electronic equipment and supplies. They wish to expand their computer lines and decided to admit Generales to the partnership. Pilapil’s capital is Php 2,000,000, Pastor’s capital is Php 1,600,000, and they share income in the ratio of 3:2, respectively. Required: Prepare the journal entries to record the admission of Generales for each of the following independent situations: Generales directly purchased half of Pastor’s investment in the partnership for Php 900,000. Generales invested Php 1,100,000 for a one-fourth interest. Goodwill will be recognized. Generales invested Php 800,000 for a one-fifth interest in the total capital of Php 4,400,000. Generales invested Php 1,000,000 for one-fifth interest. Goodwill is to be recognized.