1. 2. wing independent assumptions: Each partner is credited for the full amount of net assets invested. Each partner initially is to have equal interest in partnership capital. Cash Notes Receivable Problem 2-1 (Cash and Net Assets Contributions) The statement of financial position of Acosta as of December 1, 2014 is as follows: Merchandise Inventory Furniture and Equipment PROBLEMS Acosta Company Statement of Financial Position December 1, 2014 Accounts Receivable Less Allowance for Uncollectible Accounts Total Assets Assets Less Accumulated Depreciation Notes Payable Accounts Payable Acosta, Capital Total Liabilities and Capital P 2,250,000 150,000 P 1,800,000 450,000 ship under Liabilities and Capital P 600,000 375,000 2,100,000 600,000 1,350,000 P 5,025,000 P 750,000 1,575,000 2,700,000 P 5,025,000 Aguas offers to invest cash to give him an equity credit equal to one-half of the equity of Acosta after adjustments for the items below. Acosta cepted the offer. The merchandise is to be valued at P650,000. The Allowance for uncollectible accounts is P225,000. Interest accrued on notes receivable should be reflected. September 30, 2014 and bears interest at 6%. The note is dated

1. 2. wing independent assumptions: Each partner is credited for the full amount of net assets invested. Each partner initially is to have equal interest in partnership capital. Cash Notes Receivable Problem 2-1 (Cash and Net Assets Contributions) The statement of financial position of Acosta as of December 1, 2014 is as follows: Merchandise Inventory Furniture and Equipment PROBLEMS Acosta Company Statement of Financial Position December 1, 2014 Accounts Receivable Less Allowance for Uncollectible Accounts Total Assets Assets Less Accumulated Depreciation Notes Payable Accounts Payable Acosta, Capital Total Liabilities and Capital P 2,250,000 150,000 P 1,800,000 450,000 ship under Liabilities and Capital P 600,000 375,000 2,100,000 600,000 1,350,000 P 5,025,000 P 750,000 1,575,000 2,700,000 P 5,025,000 Aguas offers to invest cash to give him an equity credit equal to one-half of the equity of Acosta after adjustments for the items below. Acosta cepted the offer. The merchandise is to be valued at P650,000. The Allowance for uncollectible accounts is P225,000. Interest accrued on notes receivable should be reflected. September 30, 2014 and bears interest at 6%. The note is dated

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 3PA

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A admits B as a partner in business. Accounts in ledger for A on October 31, 2021, just before the admission of B show the following balances: Cash: 50,000 Accounts Receivable: 110,000 Notes Receivable: 20,000 Inventories: 50,000 Accounts Payable: 30,000 It is agreed that for the purposes of establishing A's interest, the following adjustments shall be made: An allowance for doubtful accounts of 5% of accounts receivable is to be established. An inventory amounting to 10,000 is worthless. Prepaid expenses of 1,000 and accrued expense of 2,000 are to be recognied. An interest of 10% on notes receivable amounting 10,000 dated April 30,2020 is to be accrued. B is to invest sufficient cash to obtain a 1/4 interest in the partnership. Determine the amount of cash investment by Partner B.
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A admits B as partner in business. Accounts in the ledger for A on October 31, 2020, just before the admission of B show the following balances: Cash: P50,000 Accounts receivable: 110,000 Notes receivable: 20,000 Inventories: 50,000 Accounts payable: 30,000 It is agreed that for the purposes of establishing A's interest, the following adjustments shall be made: • An allowance for doubtful accounts of 5% of accounts receivable is to be established. o An inventory amounting to P10,000 is worthless. • Prepaid expenses of P1,000 and accrued expense of P2,000 are to be recognized. • An interest of 10% on notes receivable amounting P10,000 dated April 30, 2020 is to be accrued. B is to invest sufficient cash to obtain a 1/4 interest in the Partnership. Determine the amount of cash investment by Partner B.
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1. Annual salary allowance to Gonzalez of $25,000. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Gonzalez and Van Home, 2:1. Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000. Required: How much net income should be distributed to Gonzalez and Van Horne? Gonzalez: Van Horne: S
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2. Amion admits Basa for a partnership interest in his business. The balance sheet accounts of Amion on November 30, 2020 prior to the admission of Basa are as follows: Debit Credit Cash 312,000 Merchandise inventory 468,000 Accounts receivable Accounts payable P161,200 Amion, capital
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Items 18 to 20 are based on the following data. The partnership business of John Estrada and Peter Arroyo was formed on January 2, 2020. At that date, the following assets were invested as derived from their respective sole proprietor's books. Book of Estrada Book of Arroyo 160,000 Cash. .P145,000 Accounts receivable. 80,000 50,000 Allowance for doubtful accounts. (5,000) (3,000) Merchandise inventory. 200,000 190,000 Partner's agreement as follows: 1. Estrada and Arroyo's adjusted capital contributions must be equal. In the event that one's contribution will exceed the other, any one of them shall withdraw "Cash" from their respective investment. 2. Their respective Accounts receivable should have a probability of collections. 80% for Estrada and 90% for Arroyo. 3. Merchandise inventory will be caried in the partnership book "as is". 4. Prepaid expense of P20,000 should be recognized for Estrada and P5,000 Accrued expenses for Arroyo. 18. How much is the adjusted capital contribution…
Z admits A as a partner in business. Accounts in the ledger for Z on November 20, 2018, just before the admission of A, show the following balances: Cash Accounts Receivable Merchandise Inventory Prepaid expense Accounts Payable Z, Capital P 6,800 14,200 20,000 1,000 9,000 33,000 It is agreed that the purposes of establishing Z's interest the following adjustments shall be made: a) An allowance for doubtful accounts of 3% of accounts receivable is to be established b) The merchandise inventory is to be valued at P23,000. c) Prepaid salary expenses of P600 and accrued rent expense of P800 are to be recognized. A is to invest sufficient cash to obtain a 1/3 interest in the partnership. (1) Z's adjusted capital before the admission of A; and (2) the amount cash investment by A:
The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torven, Capital Total Debit $ 7,200 38,000 27,000 98,400 Profit and loss percentages Preliquidation capital balances $170,600 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $112,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $112,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. Decrease LAPs to next highest Credit Required: Prepare a cash distribution plan as of June 30, 20X1, showing how much cash each partner will receive if the partners accept the offer to sell…
The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? OA. R12 000 DR. B. R116 00O DR OC. R52 000 CR D. R12 000 CR S Type here to search