Use the following facts and data for Items 27 thru 30. On January 1, 2019, AA and BB formed a partnership by contributing cash of P50,000 and P40,000, respectively. They have agreed to give AA 60% interest in capital and BB 50% interest in profits and losses. Since January 1, 2019, the following events have occurred for the partnership: On April 1, 2019, after charging the old partners' capital their share from a loss of P15,000 for the 1st quarter, CC was taken in as a partner by purchasing 20% partnership interest, proportionately from AA and BB as agreed among the partners. CC paid a total of P12,000 for the purchased interest and was given a 20% interest in profits. The old partners have agreed to maintain their old profit and loss ratios. 27. How much is the capital of AA upon formation of the partnership on January 1, 2019? a. P 50,000 b. P 54,000 C. P 46,000 d. P 40,000 28. How much is the capital of CC upon his admission by purchased interest on April 1, 2019? a. P 18,000 c. P 12,000 b. P 15,000 d. P 16,000 29. How much cash will BB receive on April 1, 2019 upon the admission of CC by purchase of interest? a. P 7,800 C. P 4,200 b. P 9,300 d. P 2,700

Use the following facts and data for Items 27 thru 30. On January 1, 2019, AA and BB formed a partnership by contributing cash of P50,000 and P40,000, respectively. They have agreed to give AA 60% interest in capital and BB 50% interest in profits and losses. Since January 1, 2019, the following events have occurred for the partnership: On April 1, 2019, after charging the old partners' capital their share from a loss of P15,000 for the 1st quarter, CC was taken in as a partner by purchasing 20% partnership interest, proportionately from AA and BB as agreed among the partners. CC paid a total of P12,000 for the purchased interest and was given a 20% interest in profits. The old partners have agreed to maintain their old profit and loss ratios. 27. How much is the capital of AA upon formation of the partnership on January 1, 2019? a. P 50,000 b. P 54,000 C. P 46,000 d. P 40,000 28. How much is the capital of CC upon his admission by purchased interest on April 1, 2019? a. P 18,000 c. P 12,000 b. P 15,000 d. P 16,000 29. How much cash will BB receive on April 1, 2019 upon the admission of CC by purchase of interest? a. P 7,800 C. P 4,200 b. P 9,300 d. P 2,700

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

Define embedded options
Describe the steps taken to Switch from the DB method to the SL method?
How do HTTP and HTTP-NG differ?
1. Calculate operating profit margin ratio and net profit margin ratio for the year 2015, 2016 and 2017.
Explain Handling Unequal Service Lives?
Kindly use PMT in your computations
The communication process consists of many stages. In which stage of the communication the receiver interprets the message and translates it into meaningful information? O a. Feedback O b. Noise Oc. Encoding O d. Decoding
kindly specify which option is correct.
Can you simplify this please.
Which of the following is NOT an output attribute?a. relevanceb. exception orientationc. zonesd. accuracy
I need this in text not images
Explains the difference if we prioritize Information Systems (A) first.