9. On January 1, 2016, AB and QR agreed to form a partnership. The following are their assets and liabilities. Accounts AB QR P136,000 P76,000 88,000 48,000 304,000 364,000 480,000 440,000 216,000 144,000 60,000 140,000 Cash Accounts Receivable Inventories Machinery Accounts Payable Notes Payable AB decided to pay-off his notes payable from his personal assets. It was also agreed that QR inventories were overstated by P24,000 and AB machinery was over-depreciated P20,000. QR is to invest withdraw cash in order to receive a capital credit that is 20% more than AB's total net investment in the partnership. Immediately after formation, how much cash will be presented in the partnership Statement of Financial Position?

9. On January 1, 2016, AB and QR agreed to form a partnership. The following are their assets and liabilities. Accounts AB QR P136,000 P76,000 88,000 48,000 304,000 364,000 480,000 440,000 216,000 144,000 60,000 140,000 Cash Accounts Receivable Inventories Machinery Accounts Payable Notes Payable AB decided to pay-off his notes payable from his personal assets. It was also agreed that QR inventories were overstated by P24,000 and AB machinery was over-depreciated P20,000. QR is to invest withdraw cash in order to receive a capital credit that is 20% more than AB's total net investment in the partnership. Immediately after formation, how much cash will be presented in the partnership Statement of Financial Position?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.22E

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On February 3, 2016 Sam Singh invested $90,000 cash for a 1/3 interest in a newly formed partnership. Prepare the journal entry to record the transaction.
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