On April 15, 2014, John and Greg formed a partnership. John is to invest a certain business asset at value which are yet to be agreed upon. He is to transfer his business liabilities and is to contribute sufficient cash to bring his total capital to P180,000 which is 60% of the total capital as had been agreed upon. Greg agrees to invest cash of P30,000 and merchandise valued at current market price. Details regarding the lok values of John's assets and liabilities and their corresponding valuations are: Book Agreed values values Accounts receivable P54,000 P54,000 Allowance for bad debts 3,600 6,000 Merchandise inventory 96,600 105,000 Store equipment 27,000 27,000 Accumulated depreciation-SE 18,000 13,200 Office equipment Accumulated depreciation- OE Accounts payable 18,000 4,800 18,000 9,600 48,000 48,000 The value of merchandise to be invested by Greg? The cash to be invested by John?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On April 15, 2014, John and Greg formed a partnership. John is to invest a certain business asset at
value which are yet to be agreed upon. He is to transfer his business liabilities and is to contribute
sufficient cash to bring his total capital to P180,000 which is 60% of the total capital as had been agreed
upon. Greg agrees to invest cash of P30,000 and merchandise valued at current market price. Details
regarding the lok values of John's assets and liabilities and their corresponding valuations are:
Вook
Agreed
values
values
Accounts receivable
P54,000
P54,000
Allowance for bad debts
3,600
6,000
Merchandise inventory
96,600
105,000
27,000
Store equipment
Accumulated depreciation-SE
Office equipment
Accumulated depreciation- OE
Accounts payable
27,000
18,000
13,200
18,000
18,000
9,600
4,800
48,000
48,000
The value of merchandise to be invested by Greg?
The cash to be invested by John?
Transcribed Image Text:On April 15, 2014, John and Greg formed a partnership. John is to invest a certain business asset at value which are yet to be agreed upon. He is to transfer his business liabilities and is to contribute sufficient cash to bring his total capital to P180,000 which is 60% of the total capital as had been agreed upon. Greg agrees to invest cash of P30,000 and merchandise valued at current market price. Details regarding the lok values of John's assets and liabilities and their corresponding valuations are: Вook Agreed values values Accounts receivable P54,000 P54,000 Allowance for bad debts 3,600 6,000 Merchandise inventory 96,600 105,000 27,000 Store equipment Accumulated depreciation-SE Office equipment Accumulated depreciation- OE Accounts payable 27,000 18,000 13,200 18,000 18,000 9,600 4,800 48,000 48,000 The value of merchandise to be invested by Greg? The cash to be invested by John?
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