ibute cash twice the interest of Mr. Handa in the new partnership. The assets contributed by Mr. Handa appeared in the financial reports as follows: cash, P9,000; accounts receivable, P189,000 with allowance for bad debts of P6,000; merchandise inventory, P420,000; and store equipment, P150,000 with accumulated depreciation of P15,000 Mr. Handa and Ms. Kanaba agreed that the allowance for uncollectible accounts was inadequate and should be increased by P12,000. They also agreed that the fair value for the inventory is P460,000 and for the store equipment is P140,000. How much is the cash contributed by Ms. Kanaba into the partnership? The correct answer should be 1,560,000. Please make a solution, Th
ibute cash twice the interest of Mr. Handa in the new partnership. The assets contributed by Mr. Handa appeared in the financial reports as follows: cash, P9,000; accounts receivable, P189,000 with allowance for bad debts of P6,000; merchandise inventory, P420,000; and store equipment, P150,000 with accumulated depreciation of P15,000 Mr. Handa and Ms. Kanaba agreed that the allowance for uncollectible accounts was inadequate and should be increased by P12,000. They also agreed that the fair value for the inventory is P460,000 and for the store equipment is P140,000. How much is the cash contributed by Ms. Kanaba into the partnership? The correct answer should be 1,560,000. Please make a solution, Th
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A business owned by Mr. Handa was short of cash and decided to form a partnership with Ms. Kanaba, who was able to contribute cash twice the interest of Mr. Handa in the new partnership. The assets contributed by Mr. Handa appeared in the financial reports as follows: cash, P9,000; accounts receivable , P189,000 with allowance for bad debts of P6,000; merchandise inventory, P420,000; and store equipment, P150,000 with accumulated depreciation of P15,000
Mr. Handa and Ms. Kanaba agreed that the allowance for uncollectible accounts was inadequate and should be increased by P12,000. They also agreed that the fair value for the inventory is P460,000 and for the store equipment is P140,000. How much is the cash contributed by Ms. Kanaba into the partnership?
The correct answer should be 1,560,000. Please make a solution, Thanks.
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