Mo Miller and Molly Moore operate separate hobby shops. On April 8, 2024, they decide to combine their businesses. which had been operated as proprietorships, to form Mo & Molly Partnership. Information from their separate balance sheets is presented below: Cash Accounts receivable Allowance for doubtful accounts Accounts payable Equipment Accumulated depreciation-equipment (a) Mo's Models $7.200 1,350 270 1.125 1.800 Date Account Titles and Explanation 2024 Apr. 8 720 Molly's Crafts $4,500 675 It is agreed that the expected realizable value of Mo's accounts receivable is $900 and Molly's receivables is $450. The fair market value of Mo's equipment is $810 and Molly's equipment is $450. It is further agreed that the new partnership will assume all liabilities of the proprietorships 90 450 900 360 Prepare the journal entries necessary to record the formation of the partnership. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit

Mo Miller and Molly Moore operate separate hobby shops. On April 8, 2024, they decide to combine their businesses. which had been operated as proprietorships, to form Mo & Molly Partnership. Information from their separate balance sheets is presented below: Cash Accounts receivable Allowance for doubtful accounts Accounts payable Equipment Accumulated depreciation-equipment (a) Mo's Models $7.200 1,350 270 1.125 1.800 Date Account Titles and Explanation 2024 Apr. 8 720 Molly's Crafts $4,500 675 It is agreed that the expected realizable value of Mo's accounts receivable is $900 and Molly's receivables is $450. The fair market value of Mo's equipment is $810 and Molly's equipment is $450. It is further agreed that the new partnership will assume all liabilities of the proprietorships 90 450 900 360 Prepare the journal entries necessary to record the formation of the partnership. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit

Name: sdsubject-Accounting Mo Miller and Molly Moore operate separate hobby
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Description: sdsubject-Accounting Mo Miller and Molly Moore operate separate hobby shops. On April 8, 2024, they decide to combine their businesses.which had been operated as proprietorships, to form Mo & Molly Partnership. Information from their separate balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Juan and Pedro are proprietors who decided to combine their business. On June 1, Juan and Pedro showed the following on their books:JuanAssets – P 300,000Liabilities – P 100,000PedroAssets – P 150,000Liabilities – P 50,000Upon assessment, it was determined that each partner should recognize an allowance for bad debts amounting to P 10,000. Noncurrent assets of Pedro were over depreciated by P 20,000. Some liabilities pertaining to accruals were not yet recognized in the books. Juan failed to recognize salary expenses amounting to P 15,000 and Pedro did not include accrual for electricity bill amounting to P 5,000. After formation of the partnership, how much is the net assets of the company?
Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020, they decide to combine their separate businesses which were operated as proprietorships to form M & B Auto Repair, a partnership. Information from their separate balance sheets is presented below: Marden Auto Repair Baker Auto Repair Cash $10,600 $14,500 Accounts receivable 12,800 10,300 Allowance for doubtful accounts 1,500 3,200 Accounts payable 5,500 5,900 Notes payable — 3,000 Salaries and wages payable 1,400 1,500 Equipment 12,400 24,400 Accumulated depreciation—equipment 2,800 4,400 It is agreed that the expected realizable value of Marden’s accounts receivable is $11,300 and Baker’s receivables is $7,100. The fair value of Marden’s equipment is $13,800 and the value of Baker’s equipment is $19,500. It is further agreed that the new partnership will assume all liabilities of the proprietorships with the exception of…
On October 01, 2019, Benny and Joey pooled their resources in a partnership with the firm taking over their business assets and assuming their business liabilities. They agreed to make the following adjustments and to make settlement among themselves to conform to the 40:60 capital and profit and loss ratio. ➢ Joey’s inventory be reduced by P3,000. ➢ Allowance for doubtful accounts be recognized in the amount of P1,500 each. ➢ P4,000 of unrecorded accounts payable to supplier be recorded in the books of Benny ➢ Accrued utilities be recognized in the books of Benny, P1,200. ➢ Store equipment in the books of Joey are under depreciated by P5,000. The individual trial balance before adjustments show the following: BennyJoey AssetsP120,000P150,000 Liabilities 25,000 35,000 Capital 95,000 115,000 The capital balances of the partners that conform with their agreement are: Benny: ___________________Joey: _____________________
Cam, Andy and Rae are partners in CAR Brokers and share losses in a 3:4:3 ratio, respectively. The balance sheet on December 31, 2023, when they decide to liquidate the business, is as follows: Assets Liabilities and Capital Cash $1,875,000 Accounts Payable $1,000,000 Noncash Assets $937,000 Cam, Loan 312,000 Cam, Capital 500,000 Andy, Capital 375,000 Rae, Capital 625,000 Total Assets $2,812,000 Total Liabilities & Equities $2,812,000 Note: A revaluation was done for non-cash assets valuing them at $1,002,000. The noncash assets were then sold for $800,000. As the accountant for the partnership, how do i prepare a Revaluation account
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Lady and Gaga are partners sharing profits and losses in the ratio of 7:3, respectively. On October 1, 2021, they decided to liquidate the business when the account balances are Debit Credit Cash 50,000 Non-cash Assets 150,000 Liabilities 50,000 Lady, Capital 90,000 Gaga, Capital 60,000 During the same month, the non-cash assets were sold for 100,000. After paying the liabilities, Lady and Gaga, in final settlement of their interest, would receive cash of a. 105,000 and 45,000, respectively b. 90,000 and 60,000, respectively c. 55,000 and 45,000, respectively d. 70,000 and 30,000, respectively
On January 1, 2021, A and B, both sole proprietors, decided to form a partnership to expand both of their businesses. According to their agreement, they will split profits and losses 75:25 and their initial capital ratio will also reflect that ratio.The following are A and B’s Statements of Financial Position (Attached in the photo): The values reflected in the Statement of Financial Position are already at fair values, except for the following accounts: - A's Accounts Receivable is now 20,000 less than what is stated in his Statement of Financial Position.- Both Inventories of A and B are now 90,000 and 70,000 respectively.- Equipment for B has an assessed value of 275,000, appraised value of 250,000 and book value of 200,000.- Additional accrued expenses are to be established in the amount of 10,000 for B only while additional accounts payable in the amount of 5,000 for A- It is also agreed that all liabilities will be assumed by the partnership, except for the notes payable of B…
On January 1, 2021, A and B, both sole proprietors, decided to form a partnership to expand both of their businesses. According to their agreement, they will split profits and losses 75:25 and their initial capital ratio will also reflect that ratio.The following are A and B’s Statements of Financial Position (Attached in the photo): The values reflected in the Statement of Financial Position are already at fair values, except for the following accounts: - A's Accounts Receivable is now 20,000 less than what is stated in his Statement of Financial Position.- Both Inventories of A and B are now 90,000 and 70,000 respectively.- Equipment for B has an assessed value of 275,000, appraised value of 250,000 and book value of 200,000.- Additional accrued expenses are to be established in the amount of 10,000 for B only while additional accounts payable in the amount of 5,000 for A- It is also agreed that all liabilities will be assumed by the partnership, except for the notes payable of B…
Norjannah, as her original investment in the firm of Norjannah and Nasbiya, contributed equipment that had been recorded in the books of her own business as costing P850, 000, with accumulated depreciation of P620, 000. The partner agreed on the valuation of P400, 000. They also agreed to accept Norjannah’s accounts receivable of P300, 000, realizable to the extent of 75%. Prepare the journal entry to record Norjannah’s investment in the partnership.
On December 31, 2021, the GAR Partnership of Garry, Aubrey and Rolly have the following accounts and balances: Garry, Capital(50%), P297,000; Aubrey, Capital (30%), P222,000; Rolly Capital (20%), P195,000; Loans Payable-Aubrey, P72,000; Accounts Receivable-Garry, P36,000; Rolly, Drawing, P36,000. Because of unsuccessful operation for the last 2 years, the partners decided to liquidate after closing the books on December 31, 2021. On this date, the total assets amounted to P1,056,000 including cash of P321,000. During the liquidation process, all the non-cash assets were taken by its competitor. Liabilities were settled, liquidation expenses of P15,000 were paid and the balance was distributed to the partners. Ultimately, Rolly received P125,000 in the final settlement. 9.Determine the amount realized from the sale of non-cash assets. 10.Determine the amount received by Aubrey as return on her capital.
After several years of operations, the partnership of Arenas, Dulay and Laurente is to be liquidated. After making the closing entries on June 30, 2018, the following accounts remained open: Account Title Debit Credit Cash P 50,000 Non-cash Assets 2,350,000 Liabilities P 400,000 Arenas, Capital 900,000 Dulay, Capital 500,000 Laurente, Capital 600,000 The non-cash assets are sold for P2,650,000. Profits and losses are shared equally. Prepare a Statement of Partnership Liquidation and the entries to record the following: 1. Sale of all non-cash assets 2. Distribution of gain on realization to the partners 3. Payment of the liabilities