2 (Two Sole Proprietors Form a Partnership; Books of one of the Sole Proprietors to be used by the Partnership) On October 1, 2014, April and Arias decided to pool their assets and form a partnership. The firm is to take over business assets and assume business liabilities; equities are to-be based on net assets transferred after the following adjustments: a. Arias' inventory is to be valued at P350,000. An allowance for uncollectible accounts of P9,000 and P7,500, respectively should be set up. b. Accrued expenses of P21,000 are to be recognized on April's books. c. d. Arias is to contribute sufficient cash to give him a 60% interest in the new firm.
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- On September 13, 2016, AA and BB decided to combine their assets and form a partnership. The partnership is to take over the business assets and assume the business liabilities; and capitals are to be based on net assets and transferred after the following adjustments. 1. BB's inventory is to be valued at P140,000. 2. A 5% allowance for uncollectible accounts is to be established on the accounts receivable of each party. 3. Accrued liabilities of P8,000 are to be recognized in AA's books. The statements of financial position on September 13 before adjustments are given below.On September 13, 2016, AA and BB decided to combine their assets and form a partnership. The partnership is to take over the business assets and assume the business liabilities; and capitals are to be based on net assets and transferred after the following adjustments. 1. BB's inventory is to be valued at P140,000. 2. A 5% allowance for uncollectible accounts is to be established on the accounts receivable of each party. 3. Accrued liabilities of P8,000 are to be recognized in AA's books. The statements of financial position on September 13 before adjustments are given below. Required: 1. Prepare the entries to adjust and close books of AA and BB. 2. Prepare the opening entries in the books of the partnership. 3. Prepare the statement of financial position as of September 13,2016On September 13, 2016, AA and BB decided to combine their assets and form a partnership. The partnership is to take over the business assets and assume the business liabilities; and capitals are to be based on net assets and transferred after the following adjustments. 1. BB's inventory is to be valued at P140,000. 2. A 5% allowance for uncollectible accounts is to be established on the accounts receivable of each party. 3. Accrued liabilities of P8,000 are to be recognized in AA's books. The statements of financial position on September 13 before adjustments are given below. Required: 3. Prepare the statement of financial position as of September 13,2016
- On September 13, 2016, AA and BB decided to combine their assets and form a partnership. The partnership is to take over the business assets and assume the business liabilities; and capitals are to be based on net assets and transferred after the following adjustments. 1. BB's inventory is to be valued at P140,000. 2. A 5% allowance for uncollectible accounts is to be established on the accounts receivable of each party. 3. Accrued liabilities of P8,000 are to be recognized in AA's books. The statements of financial position on September 13 before adjustments are given below. Required: 1. Prepare the entries to adjust and close books of AA and BB.October 1, 2019, Deku and Dabi decided to pool their assets and form a partnership. The firm is to take over the business assets and assume business liabilities; equities are to be based on net assets transferred after the following adjustments: a. Dabi's inventory is to be valued at P350,000 b. An allowance for uncollectible accounts of P9,000 and P7,500, respectively should be set up. c. Accrued expenses of P21,000 are to be recognized on Deku's books. d. Dabi is to contribute sufficient cash to give him 60% interest in the new firm Statements of financial position for Deku and Dabi in October 1 before adjustments are presented below: Cash Accounts receivable Merchandise inventory Equipment Accum. Depr. - Equip. Total assets Accounts payable Capital Total liabilities and capital Instructions: Dabi Deku 187,500 112,500 450,000 375,000 400,000 300,000 250,000 300,000 (112,500) (37,500) 1,175,000 1,050,000 345,000 830,000 1,175,000 250,000 800,000 1,050,000 1. Give the entries to adjust…4. On January 1, 2020, Anne, and Betty decided to form a partnership. The firm is to take over the assets and assume liabilities and capital are to be based on net assets transferred after the following adjustments: a. Anne and Betty's inventory is to be valued at P 31,000 and P 22,000, respectively. b. Accounts receivable of P 2,000 in Anne's books and P 1,000 in Betty's books are uncollectible. C. Accrued salaries of P 4,000 to Anne and P 5,000 to Betty are still to be recognized in the books. d. Unused office supplies of Anne amounted to P 5,000 while that of Betty amounted to P 1,500. Unrecorded patent of P 7,000 and prepaid rent of P 4,500 are to be recognized in the books of Anne and Betty, respectively. Anne is to invest or withdraw cash necessary to have a 40% interest in the firm. e. f. Balance sheets for Anne and Betty on January 1, 2020, before adjustments are given below: Betty Anne 50,000 20,000 24,000 5,000 24,000 (3,000) P 120,000 31,000 26,000 32,000 P Cash Accounts…
- • On September 13, 2016, AA and BB decided to combine their assets and form a partnership. The partnership is to take over the business assets and assume the business liabilities; and capitals are to be based on net assets transferred after the following adjustments: 1. BB's inventory is to be valued at P140,000. 2. A5% allowance for uncollectible accounts is to be established on the accounts receivable of each party. 3. Accrued liabilities of P8,000 are to be recognized in AA's books. The statements of financial position on September 13 before adjustments are given below. AA BB Cash P75.000 P45.000 Accounts Receivable 180,000 150,000 Inventory 160,000 120,000 Property and Equipment 100,000 120,000 Accumulated Depreciation (45000) (15.000) 420,000 Accounts Payable 138,000 200,000 Capital 332.000 320 000 420.000 • Required: 1. Prepare the entries to adjust and close books of AA and BB. 2. Prepare the opening entries in the books of the partnership. 3. Prepare the statement of financial…11. On April 1, 2020, Abrenica and Banggayan pooled their assets to form a partnership, with the firm to take over their business assets and assume the liabilities. Partners capitals are to be based on net assets transferred after the following adjustments: a. Banggayan inventory is to be increased by P21,000; b. Allowance for doubtful accounts of P7,000 and P10,500 are to be set up in the books of Abrenica and Banggayan, respectively; Accounts payable of P28,000 is to be recognized on Abrenica's books. C. The individual trial balances on April 1, 2020, before adjustments follow: Abrenica Banggayan P931,000 Assets P525,000 Liabilities 35,000 241,500 Capital 490,000; 549,500 How much is the capital of Abrenica after the above adjustments to his books? a. P490,000 b. P455,000 C. P479,500 d. P462,00010. On October 1, A and B pooled their assets to form a Partnership, with the firm to take over the business assets and assume liabilities. Partners capitals are to be based on net assets transferred after the following adjustments. The partners agreed to the following adjustments: A’s inventory is to be increased by P15,000, while B’s inventory has a current fair market value of P100,000 and an agreed value of P110,000. B’s unadjusted inventory amounted to P90,000. Machinery and equipment are over-depreciated by P5,000 and P8,000 for A and B, respectively. Furnitures and fixtures for partner A has a current fair market value of P60,000 and an agreed value of P50,000. Furnitures and fixtures is carried at its cost amounting to P100,000 with accumulated depreciation of P45,000. Accrued rent income of P10,000 for A, and accrued salaries of P5,000 for B should be recognized on their respective books. The individual trial balances on October 1, before adjustments, follow: DESCRIPTION…
- 9. On October 1, A and B pooled their assets to form a Partnership, with the firm to take over the business assets and assume liabilities. Partners capitals are to be based on net assets transferred after the following adjustments: The partners agreed to the following adjustments: a. A's inventory is to be increased by P15,000, while B's inventory has a current fair market value of P100,000 and an agreed value of P110,000. B's unadjusted inventory amounted to P90,000. b. Machinery and equipment are over-depreciated by P5,000 and P8,000 for A and B, respectively. c. Furnitures and fixtures for partner A has a current fair market value of P60,000 and an agreed value P50,000. Furnitures and fixtures is carried at its cost amounting to P100,000 with accumulated depreciation of P45,000. d. Accrued rent income of P10,000 for A, and accrued salaries of P5,000 for B should be recognized on their respective books. The individual trial balances on October 1, before adjustments, follow:…7. X invited Y to a partnership interest in his business. Accounts in the ledger of X on January 1, 2020, before the admission of Y, show the following: Cash-P208,000; Accounts receivable-P460,000; Inventory P1,440,000; Accounts payable-P496,000. It is agreed that for the purpose of establishing the interest of X, the following adjustments shall be made: a) an allowance for bad debts of 8% based on the outstanding accounts receivable is to be established. b) the inventory is to be valued at P1,000,000 c) Prepaid expenses of P72,000 and accrued expenses of P32,000 are to recognized. Y is to invest sufficient cash for a one-third interest in the partnership. How much is the adjusted capital of Y?On October 1, A and B pooled their assets to form a Partnership, with the firm to take over the business assets and assume liabilities. Partners capitals are to be based on net assets transferred after the following adjustments. The partners agreed to the following adjustments: 1. A's inventory is to be increased by P15,000, while B's inventory has a current fair market value of P100,000 and an agreed value of P110,000. B's unadjusted inventory amounted to P90,000. 2. Machinery and equipment are over-depreciated by P5,000 and P8,000 for A and B, respectively. 3. Furnitures and fixtures for partner A has a current fair market value of P60,000 and an agreed value of P50,000. Furnitures and fixtures is carried at its cost amounting to P100,000 with accumulated depreciation of P45,000. 4. Accrued rent income of P10,000 for A, and accrued salaries of P5,000 for B should be recognized on their respective books. The individual trial balances on October 1, before adjustments, follow:…