a. The allowance for doubtful accounts is over set-up by P3,000. b. Merchandise should be valued at P105,000 due to obsolescence. c. The equipment is under depreciated by P15,000. d. Accounts Payable was overstated by P4,000 due to recording of an expense. Required: 1. Compute the capital account balance of Cadua prior to partnership formation.
a. The allowance for doubtful accounts is over set-up by P3,000. b. Merchandise should be valued at P105,000 due to obsolescence. c. The equipment is under depreciated by P15,000. d. Accounts Payable was overstated by P4,000 due to recording of an expense. Required: 1. Compute the capital account balance of Cadua prior to partnership formation.
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 4PB
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