10. Fiona and Gary are partners with capital balances of P350,000 and P250,000, respectively. They agree to accept Romy who will contribute land which costs him P250,000 but its market value is P300,000. (see attached image for the actual questions/informations. please answer it based on your knowledge. thank you so much!) Direction: Make entries to record Romy’s admission based on the following independent cases: a) Romy will be given a 1/3 interest in the firm. No bonus or asset revaluation should be recognized. b) Romy will be given a 40% interest. Use the bonus capital method. c) Romy will be given a 40% interest. Assets should first be revalued. d) Romy will be given a 30% interest. Use the bonus capital method. e) Romy will be given a 30% interest. Assets should first be revalued.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

10. Fiona and Gary are partners with capital balances of P350,000 and P250,000, respectively. They agree to accept Romy who will contribute land which costs him P250,000 but its market value is P300,000.

(see attached image for the actual questions/informations. please answer it based on your knowledge. thank you so much!)

Direction:

Make entries to record Romy’s admission based on the following independent cases:
a) Romy will be given a 1/3 interest in the firm. No bonus or asset revaluation should be recognized.
b) Romy will be given a 40% interest. Use the bonus capital method.
c) Romy will be given a 40% interest. Assets should first be revalued.
d) Romy will be given a 30% interest. Use the bonus capital method.
e) Romy will be given a 30% interest. Assets should first be revalued.

10. Fiona and Gary are partners with capital balances of P350,000 and P250,000, respectively.
They agree to accept Romy who will contribute land which costs him P250,000 but its
market value is P300,000.
Direction:
Make entries to record Romy's admission based on the following independent cases:
a) Romy will be given a 1/3 interest in the firm. No bonus or asset revaluation should be
recognized.
b) Romy will be given a 40% interest. Use the bonus capital method.
c) Romy will be given a 40% interest. Assets should first be revalued.
d) Romy will be given a 30% interest. Use the bonus capital method.
e) Romy will be given a 30% interest. Assets should first be revalued.
Jonces are
Transcribed Image Text:10. Fiona and Gary are partners with capital balances of P350,000 and P250,000, respectively. They agree to accept Romy who will contribute land which costs him P250,000 but its market value is P300,000. Direction: Make entries to record Romy's admission based on the following independent cases: a) Romy will be given a 1/3 interest in the firm. No bonus or asset revaluation should be recognized. b) Romy will be given a 40% interest. Use the bonus capital method. c) Romy will be given a 40% interest. Assets should first be revalued. d) Romy will be given a 30% interest. Use the bonus capital method. e) Romy will be given a 30% interest. Assets should first be revalued. Jonces are
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Partners and Partnerships
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education