greed by the mers for purposes of dete nen nterests in tne parthe of accounts receivable is to be set up as uncollectible in each book. handise inventory of Henry is to be increased by P 1, 000. urniture and fixtures of Gerry and Henry are to be depreciated by P 600 and P 900n
greed by the mers for purposes of dete nen nterests in tne parthe of accounts receivable is to be set up as uncollectible in each book. handise inventory of Henry is to be increased by P 1, 000. urniture and fixtures of Gerry and Henry are to be depreciated by P 600 and P 900n
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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please answer number 5. thank you
Transcribed Image Text:The conditions agreed by the partners for purposes of determining their interests in the partnership are presented
below:
10% of accounts receivable is to be set up as uncollectible in each book.
b. Merchandise inventory of Henry is to be increased by P 1, 000.
The furniture and fixtures of Gerry and Henry are to be depreciated by P 600 and P 900 respectively.
a.
c.
Required:
Prepare the necessary journal entries to record the formation of the partnership.
Problem #4
Froilan Labausa contributed land, inventory and P 280,000 cash to a partnership. The land has a book value of P 650,
000 and a market value of P 1,350,000. The inventory has a book value of P 600,000 and a market value of P 510,000.
The partnership also assumed a P 350,000 note payable owed by Labausa that was used to purchase the land. Rosalie
Balhag agreed to put up cash equivalent to Labausa's net investment.
REQUIRED: prepare the journal entry to record Labausa's and Balahag's investment in the partnership.
Problem #5
Sabio, as her original investment in the firm of Sabio and Mariano, contributed equipment that had been recorded in
the books of her own business as costing P 900, 000, with accumulated depreciation of P 620, 000. The partners agreed
on a valuation of P 400, 000. they also agreed to accept Sabio's accounts receivable of P 360, 000, realizable to the
extent of 85%.
REQUIRED: Prepare the journal entry to record Sabio's investment in the partnership.
Problem #6
Gogola and Paglinawan have just formed a partnership. Gogola contributed cash of P 1,260,000 and computer
equipment that cost P 540,000. The fair value of the computer is P 360,000. Gogola has notes payable on the computer
of P 120,000 to be assumed by the partnership. Gogola is to have a 60% capital interest in the partnership. Paglinawan
contributed only P 900,000. The partners agreed to share profits and loss equally.
Gogola should make an additional investment or (withdrawal) of?
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