3. Scooby admits Scrappy as a partner in the business. Balance sheet accounts of Scooby on September 30, just before the admission of Scrappy show: P 2,600 12,000 18,000 Cash Accounts receivable Merchandise inventory Accounts payable Scooby, capital Р 6,200 26,400 It is agreed that for purposes of establishing Scooby's interest, the following adjustments shall be made: a. An allowance for doubtful accounts of 2% is to be established. b. Merchandise inventory is to be valued at P20,200. c. Prepaid expenses of P350 and accrued expenses of P400 are to be recognized. Scrappy is to invest sufficient cash to obtain a 1/3 interest in the partnership. How much is Scrappy's investment to the partnership?

3. Scooby admits Scrappy as a partner in the business. Balance sheet accounts of Scooby on September 30, just before the admission of Scrappy show: P 2,600 12,000 18,000 Cash Accounts receivable Merchandise inventory Accounts payable Scooby, capital Р 6,200 26,400 It is agreed that for purposes of establishing Scooby's interest, the following adjustments shall be made: a. An allowance for doubtful accounts of 2% is to be established. b. Merchandise inventory is to be valued at P20,200. c. Prepaid expenses of P350 and accrued expenses of P400 are to be recognized. Scrappy is to invest sufficient cash to obtain a 1/3 interest in the partnership. How much is Scrappy's investment to the partnership?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 37P

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