Prepare the opening entry for the formation of the Partnership L and W as of July 1, using fair values.

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Chapter 1-Accountring for Partnership Formation & Operation On March 1, of the current year, PP and QQ decide to combine their businesses and form a partnership. Their balance sheets on March 1, before adjustments. MULTIPLE CHOICE (PROBLEMS) QQ PP 9,000.00 18,500.00 30,000.00 30,000.00 11,500.00 6,375.00 105,375.00 45,750.00 59,625.00 105,375.00 3,750.00 13,500.00 19,500.00 9,000.00 2,750.00 3,000.00 51,500.00 18,000.00 33,500.00 51,500.00 showed the following: P Cash Accounts Receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses Total P. Accounts Payable Capital Total P They agreed to have the following items recorded in their books: a. Provide 2% allowance for doubtful accounts. b. PP's furniture and fixtures should be P31,000, while QQ's office equipment is under-depreciated by P250. c. Rent expense incurred previously by PP was not yet recorded amounting to P1,000, while salary expense incurred by QQ was not also recorded amounting to P800. d.…

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Chapter 19, Problem 6SPB

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Prepare the opening entry for the formation of the Partnership L and W as of July 1, using fair values.

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Chapter 1-Accountring for Partnership Formation & Operation On March 1, of the current year, PP and QQ decide to combine their businesses and form a partnership. Their balance sheets on March 1, before adjustments. MULTIPLE CHOICE (PROBLEMS) QQ PP 9,000.00 18,500.00 30,000.00 30,000.00 11,500.00 6,375.00 105,375.00 45,750.00 59,625.00 105,375.00 3,750.00 13,500.00 19,500.00 9,000.00 2,750.00 3,000.00 51,500.00 18,000.00 33,500.00 51,500.00 showed the following: P Cash Accounts Receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses Total P. Accounts Payable Capital Total P They agreed to have the following items recorded in their books: a. Provide 2% allowance for doubtful accounts. b. PP's furniture and fixtures should be P31,000, while QQ's office equipment is under-depreciated by P250. c. Rent expense incurred previously by PP was not yet recorded amounting to P1,000, while salary expense incurred by QQ was not also recorded amounting to P800. d.…

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