A has an existing business and admits B as a partner in the business.Statement of Financial Position accounts of A just before the admission of B show:Cash, P26,000, Accounts receivable, P 120,000, Merchandise inventory, P180,000, andAccounts payable, P62,000.It was agreed that for purposes of establishing A's interest, the following adjustmentsbe made:1. an Allowance for Doubtful Accounts of 3% of accounts receivable is to be set up;2. Merchandise inventory is to be adjusted upward by P25,000; and3. Prepaid Expenses of P3,600 and Accrued Liabilities of P4,000 are to be recognized.If B is to invest sufficient cash to obtain 3/5 interest in the partnership, Compute theamount B contributes to the new partnership.

Partnership firm is where two or more person come together to form a business. And they should share…

Answered: If B is to invest sufficient cash to…

If B is to invest sufficient cash to obtain 3/5 interest in the partnership, Compute the amount B contributes to the new partnership.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter6: Accounting Periods And Other Taxes

Section: Chapter Questions

Problem 5MCQ: Which of the following entities is required to report on the accrual basis? An accounting firm...

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Moira admits Joni as a partner in the business. Balance sheet accounts of Moira just before theadmission of July shows: Cash, P43,000, Accounts Receivable, P150,000, Merchandise Inventory, P170,000, Accounts Payable, P52,000. It was agreed that for purposes of establishing Moira’s interest, the following adjustments should be made: 1.) an allowance for doubtful accounts of 3% of accounts receivable is to be established; 2.) merchandise inventory is to be increased by P25,000; 3.) prepaid expenses of P7,600 and accrued liabilities of P4,800 are to be recognized. If Joni isto invest sufficient cash to obtain 2/5 interest in the partnership, What amount should she contribute to the new business? *
Z admits A as a partner in business. Accounts in the ledger for Z on November 20, 2018, just before the admission of A, show the following balances: Cash Accounts Receivable Merchandise Inventory Prepaid expense Accounts Payable Z, Capital P 6,800 14,200 20,000 1,000 9,000 33,000 It is agreed that the purposes of establishing Z's interest the following adjustments shall be made: a) An allowance for doubtful accounts of 3% of accounts receivable is to be established b) The merchandise inventory is to be valued at P23,000. c) Prepaid salary expenses of P600 and accrued rent expense of P800 are to be recognized. A is to invest sufficient cash to obtain a 1/3 interest in the partnership. (1) Z's adjusted capital before the admission of A; and (2) the amount cash investment by A:
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need answer asap, please. tysm! Marie admits Neri as a partner in business. Just before the partnership's formation, Marie's books showed the following: Cash 2,600 Accounts Receivable 12,000 Merchandise Inventory 18,000 Accounts Payable 6,200 Marie, Capital 26,400 It was agreed that, for purposes of establishing Marie's investment in the firm, the following adjustments shall be reflected: 1. Allowance for bad debts of 2% should be set up 2. Merchandise Inventory should be valued at P20,200 3. Prepaid expenses of P350 and accrued expenses of P400 should be recognized. How much cash should Neri invest to secure a 1/3 interest in the partnership?
Marie admits nelly as a partner in business. Just before the partnership's formation, Marie books showed the following Cash 2,600 Accounts receivable 12,000 Merchandise inventory 18,000 Accounts payable 6,200 Mark, Capital 26,400 It was agreed that, for purposes of establishing Marie investment in the firm, the following adjustments shall be reflected: . Allowance for bad debts of 2% should be set up. • Merchandise inventory should be valued at P20,200. • Prepaid expenses of P350 and accrued expenses of P400 should be recognized. Using the same information in no. 2. If nelly contributed an equipment with carrying value of P4,000 and fair value of P4.500, how much cash was contributed for a one-fifth interest in the partnership?
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