On January 31, 20x4, partners of Lon, Mac & Nan Partnership, had the following loan and capital account balances (after closing entries for January): Loan receivable from Lon 000 Dr P20, Loan payable to Nan 60, .... 000 Cr Lon, capital 30,000 Dr Мacс, сapital 120,000 Cr Nan, capital 70,000 Cr

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 5RE
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On January 31, 20x4, partners of Lon, Mac & Nan Partnership, had
the following loan and capital account balances (after closing entries
for January):
Loan receivable from Lon
P20,
000 Dr
Loan payable to Nan
60,
0o 0 Cr
Lon, capital
30,000 Dr
Mac, capital
120,000 Cr
Nan, capital
70,000 Cr
Transcribed Image Text:On January 31, 20x4, partners of Lon, Mac & Nan Partnership, had the following loan and capital account balances (after closing entries for January): Loan receivable from Lon P20, 000 Dr Loan payable to Nan 60, 0o 0 Cr Lon, capital 30,000 Dr Mac, capital 120,000 Cr Nan, capital 70,000 Cr
The partnership's income sharing ratio was Lon, 50, Mac, 20%. And
Nan, 30%. On January 31, 20x4, Ole was admitted to the partnership
for a 20% interest in total capital of the partnership in exchange for
an investment of P40,000 cash. Prior to Ole's admission, the existing
partners agreed to increase the carrying amount of the partnership's
inventories to current fair value, a P60,000 increase. The capital
account to be credited to Ole:
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Transcribed Image Text:The partnership's income sharing ratio was Lon, 50, Mac, 20%. And Nan, 30%. On January 31, 20x4, Ole was admitted to the partnership for a 20% interest in total capital of the partnership in exchange for an investment of P40,000 cash. Prior to Ole's admission, the existing partners agreed to increase the carrying amount of the partnership's inventories to current fair value, a P60,000 increase. The capital account to be credited to Ole: Previous Next
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