Journal Entries: Partnership Formation Art, Bart and Cath formed a partnership by contributing 40%, 30% and 30% of the total agreed capital. Problem 3-7 The total cash contribution amounted to P50,000, contributed by Art and Bart. Noncash assets were contributed by Bart and Cath, and the corresponding liability of P5,000 and P10,000 of Bart and Cath were assumed by the partnership. Right after the formation, the partnership's basic accounting equation is P115,000 assets, P15,000 liabilities, and P100,000 capital. Required: Prepare the journal entries to record the contribution of 1. Art 2. Bart 3. Cath
Journal Entries: Partnership Formation Art, Bart and Cath formed a partnership by contributing 40%, 30% and 30% of the total agreed capital. Problem 3-7 The total cash contribution amounted to P50,000, contributed by Art and Bart. Noncash assets were contributed by Bart and Cath, and the corresponding liability of P5,000 and P10,000 of Bart and Cath were assumed by the partnership. Right after the formation, the partnership's basic accounting equation is P115,000 assets, P15,000 liabilities, and P100,000 capital. Required: Prepare the journal entries to record the contribution of 1. Art 2. Bart 3. Cath
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 8DQ
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