Problem #10Two Sole Proprietors Form a PartnershipOn Oct. 31, 2019, Apalisoc and Tuddao agreed to combine their proprietorships as apartnership. Their statements of financial position are as follows:Apalisoc's BusinessTuddao's BusinessBookCurrentBookCurrentMarketValueAssetsValueMarket ValueValueP 80,00080,000340,000535,000P 80,00063,000351,000574,000P 37,00037,000220,000Cash202,000Accounts Receivable (net)InventoryProperty and Equipment (net)510,000460,0001,235,000P1,934,0001,218,000P1,985,000P1,035,000P1,068,000Total AssetsLiabilities and CapitalP 236,00022,000P 91,00014,00091,00014,000P 236,000Accounts PayableAccrued ExpensesNotes PayableApalisoc, CapitalTuddao, CapitalTotal Liabilities & Capital22,000750,000977,000750,000930,000P1,035,000P1,985,000P1,934,000P1,068,000Required:1. Record the partnership formation.2. Prepare the partnership's statement of financial position as at Oct. 31, 2019.

It is a business organization wherein two or more persons agree to bring in capital to form and run…

Problem #10 Two Sole Proprietors Form a Partnership On Oct. 31, 2019, Apalisoc and Tuddao agreed to combine their proprietorships as a partnership. Their statements of financial position are as follows: Apalisoc's Business Tuddao's Business Book Current Book Current Assets Value Market Value Value Market Value P 80,000 P 80,000 80,000 340,000 - 535,000 P1,035,000 P 37,000 P 37,000 220,000 Cash 202,000 63,000 Accounts Receivable (net) Inventory 351,000 460,000 1,235,000 P1,934,000 510,000 574,000 P1,068,000 1,218,000 Property and Equipment (net) Total Assets P1,985,000 Liabilities and Capital P 236,000 22,000 750,000 P 236,000 22,000 750,000 P 91,000 14,000 P 91,000 14,000 Accounts Payable Accrued Expenses Notes Payable Apalisoc, Capital Tuddao, Capital Total Liabilities & Capital 977,000 930,000 P1,985,000 P1,934,000 P1,035,000 P1,068,000 Required: 1. Record the partnership formation. 2. Prepare the partnership's statement of financial position as at Oct. 31, 2019.

Problem #10 Two Sole Proprietors Form a Partnership On Oct. 31, 2019, Apalisoc and Tuddao agreed to combine their proprietorships as a partnership. Their statements of financial position are as follows: Apalisoc's Business Tuddao's Business Book Current Book Current Assets Value Market Value Value Market Value P 80,000 P 80,000 80,000 340,000 - 535,000 P1,035,000 P 37,000 P 37,000 220,000 Cash 202,000 63,000 Accounts Receivable (net) Inventory 351,000 460,000 1,235,000 P1,934,000 510,000 574,000 P1,068,000 1,218,000 Property and Equipment (net) Total Assets P1,985,000 Liabilities and Capital P 236,000 22,000 750,000 P 236,000 22,000 750,000 P 91,000 14,000 P 91,000 14,000 Accounts Payable Accrued Expenses Notes Payable Apalisoc, Capital Tuddao, Capital Total Liabilities & Capital 977,000 930,000 P1,985,000 P1,934,000 P1,035,000 P1,068,000 Required: 1. Record the partnership formation. 2. Prepare the partnership's statement of financial position as at Oct. 31, 2019.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 6SPB

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