A, B, and C executed a promissory note binding themselves to pay X, Y, and Z the amount of ₱90,000.00. Assuming that C is insolvent, can A and B be held liable for C’s share in the obligation?   a.Yes, the debt shall be presumed to be divided into as many equal shares as there are debtors. b. Yes. A and B shall be proportionately liable. c. No. The debts are considered distinct from one another. d. No. Only either A or B will be liable. Not both.

On March 1, 2018, X and Y formed a partnership. The partners contributed the following: (see attached image) The partners agree on the following:a. P10,000 of the accounts receivable of X is to be written-off.b. An allowance for doubtful accounts of 15% is to be established on the remaining receivables of X and Y.c. The inventory of Y is to be valued at P140,000.d. The equipment of X is under depreciated by P20,000 and the equipment of Y has a fair value of P190,000.e. The note of X is dated December 1, 2017 and is subject to a 12% interest. Interest had not yet been accrued.f. The partners agree on a 2:1 profit and loss ratio.g. The partners agree to bring their capital balance proportionate to their profit and loss ratio.Requirement:1. If Y's Capital is to be used as basis, how much is the adjusted capital of X after the formation? 2. What is the total assets of the partnership immediately after the formation?3. If the goodwill method is to be used in determining the capital of each…

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Wedding Cake Ltd. has its shares listed on a securities exchange. It has entered a contractual agreement to issue $10 million of its ordinary shares to Island Ltd. in two years time. The number of shares to be ultimately issued will depend on the market price of the shares in two years time. Should Wedding Cake Ltd. recognise a financial liability or an equity instrument in relation to this agreement?

ILLUSTRATION 12. A, B and C are partners in a firm sharing profits and losses in the ratio of 2: 2: 1. They decided to dissolve and appoint B to realise the assets and distribute the proceeds for which he is to receive as his remuneration 5% of the amounts ultimately paid to A and C but in lieu of this he is to bear all expenses of realisation. Balance Sheet of the firm on the date of dissolution is as under : Liabilities Assets Creditors A's Capital B's Capital 4,229 1,317 3,960 2,970 Debtors Less : Provision 211 4,018 1,872 Stock Cash 290 Other Assets C- (Overdrawn) 1,710 357 8,247 8,247 B informs of the following realisations : Debtors $ 3,462 ; Stock $ 1,444 ; Goodwill $ 50 ; Other Assets $ 914. Creditors which were not recorded in books are now paid $100. Expenses of realisation amount to his insolvency. Close books of the firm. 310. C is able to contribute only $ 100 beyond which he expresses

7. The following transactions of Best Pizza, owned by Reyes, Ortiz and Flores, took place from March 1 to May 31, 2019: (see attached images) March 1 Reyes, who owns an ice cream parlor, invested cash of P80,000 and merchandise costing P120,000 but with a fair value of P70,000. Customers’ accounts of P50,000 were also taken over by the partnership at its realizable valuc of 80%. (Recognize an allowance for doubtful accounts for 20% of cost). Ortiz invested cash of P40,000 and pieces of furniture costing P150,000 which the partners agree to be 50% depreciated to arrive at its current fair value. May 1 Flores, an expert in pizza making, invested imported cooking equipment costing P350,000 but which fair value dropped by 40% of its cost. Flores made a down payment of P200,000 when this was purchased and issued a note for the balance half of which is still unpaid. Partners agree that the liability will be assumed, by the partnership. May 31 Partners agree that additional cash investments…

E17-23. Please answer part d.

Qarabag Ltd enters into a contract to pay $20 million to acquire fittings. Under which of the following situations would Qarabag Ltd recognise a liability? Qarabag Ltd has not received the fittings but has paid for it. O Until Qarabag pays for the fittings, regardless of whether it has received the fittings. Qarabag Ltd has received the fittings and has paid for it. O Qarabag Ltd has not received the fittings and has not paid for it. O Qarabag Ltd has received the fittings but has not paid for it. Question 5 Coloma Ltd owns 80% of the shares in Shirak Ltd. In the context of preparing a General Purpose Financial Report, Shirak Ltd's relationship to Coloma Ltd is best described as that of a: O Shareholder O Parent Investment O Non-controlling interest O Subsidiary

Nassau Co. owes Dominion Ltd. $115,000 on a note payable, plus $7,500 interest. Dominion agrees to accept land in full settlement. The land is recorded on the books of Nassau at $55,600 and is currently worth $85,000. ​ Required: Prepare the journal entry to record the debt settlement on the books of Nassau.

0 (Based on Appendix 7B) Marshall Companies, Inc., holds a note receivable from a former subsidiary. Dueto financial difficulties, the former subsidiary has been unable to pay the previous year’s interest on the note.Marshall agreed to restructure the debt by both delaying and reducing remaining cash payments. The concessionsimpair the creditor’s investment in the receivable. How is this impairment recorded?