Gogola and Paglinawan have just formed a partnership. Gogola contributed cash of P1,260,000 and computer equipment that cost P540,000. The fair value of the computer is P360,000. Gogola has notes payable on the computer of P120,000 to be assumed by the partnership. Gogola is to have 60% canital interest in the nartnershin

Gogola and Paglinawan have just formed a partnership. Gogola contributed cash of P1,260,000 and computer equipment that cost P540,000. The fair value of the computer is P360,000. Gogola has notes payable on the computer of P120,000 to be assumed by the partnership. Gogola is to have 60% canital interest in the nartnershin

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 11.11AP

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Problem #3 Formation of Partnership. Gogola and Paglinawan have just formed a partnership.Gogola contributed cash of P1,260,000 and a computer equipment that cost P540,000.The fair value of the computer is P360,000.Gogola has notes payable on the computer of P120,000 to be assumed by the partnership.Gogola is to have 60% capital interest in the partnership.Paglinawan contributed only P900,000.The partners agreed to share a profit and loss equally. Gogola should make an additional investment (withdrawal) of
PARTNERSHIP Kindly provide a clear solution. Thank you! Partners X, Y and Z have capital balances capital balances in a partnership of P140,000, P60,000 and P1,800,000. The operations for the year resulted in a loss of P240,000. What will be the capital balance of Y if the three partners share in the profits of the partnership in the ratio of 2:2:6? (POSITIVE FOR CREDIT BALANCE and NEGATIVE () or "-" FOR DEBIT BALANCE)* Partners X, Y and Z have capital balances capital balances in a partnership of P140,000, P60,000 and P1,800,000. The operations for the year resulted in a loss of P240,000. What will Y’s capital be if X gets a P280,000 salary, Y gets a P100,000 salary and Z gets a 10% interest on her beginning capital balance, with the remaining being divided at a 1:1:2 ratio? (POSITIVE FOR CREDIT BALANCE and NEGATIVE () or "-" FOR DEBIT BALANCE)*
A, B, C, D, and E wants to create a partnership. A promised to contribute his jewelries. B will contribute his jewelry cases worth P500,000.00. C, D, and E promised to contribute P100,000.00 each. They come to you to ask you for guidance. They want to know if their agreements as to their contribution is enough to create a valid partnership. What will you tell them? a. They are not correct because they are forming a corporation with the contributions that they agreed. b. They are correct because a partnership is a consensual contract. c. They are not correct because they are required to execute a public instrument. d. They are correct because their presence before the Securities and Exchange Commission is enough.
PROBLEM 1On June 30, 20x8 A, the sole proprietor of A Inc, expandsthe company and establishes a partnership with B and C. Thepartners plan to share profits and losses as follows: A, 50%;B, 25% and C 25%. They also agree that the beginning capitalbalances of partnership will reflect this same relationship.A asked B to join the partnership because his many businesscontacts are expected to be valuable during the expansion. B iscontributing P40,000 and a building that has an original cost ofP520,000, book value of P420,000, tax assessment of P310,000 andfair value of P370,000. The building is subject to a P242,000mortgage that the partnership will assume. C is contributingP66,000 and marketable securities costing P252,000 but arecurrently worth P345,000.A's investment in the partnership is his business. He plansto pay off the notes with his personal assets. The other partnershave agreed that the partnership will assume the accounts payable.The balance sheet for the A Inc follows:…
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2. Psalm and Selah decided to form a partnership on June 30, 2030, Assets contributed by the partners are: Psalm Selah Book Value Fair Value Book Value Fair value Cash P375,000 P375,000 P875,000 P875,000 Merchandise inventory 95,000 125,000 Furniture and fixtures 350,000 312,500 872,500 937,500 Transportation equipment 3,262,500 2,812,500 The transportation equipment is subject to a mortgage loan of P1,125,000, which is to be assumed by the partnership. The partnership agreement provides that Psalm and Selah share profits and losses of 30% and 70% respectively. Assuming that the partners agreed to bring their respective capital in proportion to their profit and loss ratio, using Selah capital as base. How much additional cash is to be invested (withdrawn) by Psalm? A. P(687,500)B. P(987,500)C. P 875,000 D. P 687,500
ANSWER 4 & 5 Following is the current balance sheet for a local partnership of doctors: cash and current assets $ 30,000.00 liabilitites $ 40,000.00 land $ 180,000.00 A capital $ 20,000.00 building and equipment (net) $ 10,000.00 B capital $ 40,000.00 totals $ 310,000.00 C capital $ 90,000.00 D capital $ 120,000.00 Totals $ 310,000.00 The following questions represent independent situations: E is going to invest enough money in this partnership to receive a 25 percent interest. No goodwill or bonus is to be recorded. How much should E invest? E contributes $36,000 in cash to the business to receive a 10 percent interest in the partnership. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: A, 30 percent; B, 10 percent; C, 40 percent; and D, 20 percent. After E makes this investment, what are the individual capital balances? E contributes $42,000 in cash…
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