A business owned by Cristiano Ronaldo was short of cash and Ronaldo therefore decided toform a Partnership with Lionel Messi, who was able to contribute cash to the new partnership.The assets contributed by Ronaldo appeared as follows in the balance sheet of her business: cash$600: account receivable, $34900, with an allowance for doubtful accounts of $960: inventory$45600: and store equipment, $21600. Ronaldo had recorded depreciation of $1800 during hisuse of the store equipment in his sole proprietorship.Ronaldo and Messi agreed that the allowance for Doubtful accounts was inadequate and shouldbe $1800.They also agreed that a fair value for the inventory was its replacement cost of $54000and that the fair value of the store equipment was $19000.You are required to open thepartnership accounts by making a general journal entry to record the investment by Ronaldo?

JOURNAL ENTRIES Date Particulars Debit($) Credit($) Cash 600 Accounts receivable…

Answered: partnership accounts by making a…

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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A business owned by Mel Madrigal was short of cash and she decided to form a partnership with Gel Panganiban, who was able to contribute cash twice (2x) the interest of Mel in the new partnership. The assets contributed by Mel appeared as follows in the balance sheet of her business: Cash, P4,500; Accounts Receivable P94,500; Allowance for doubtful accounts of P3,000; Inventory P210,000; Store equipment P75,000 with an accumulated depreciation of P7,500. Mel and Gel agreed that the allowance for doubtful accounts was inadequate and should be P5,000. They also agreed that the fair value for the inventory is P230,000 and P60,000 for the store equipment. What is the cash contributed by Gel into the partnership was ? what is the amount?
A business owned by A1 was short of cash and she decided to form a partnership with A2, who was able to contribute cash 1.5 times the interest of A1 in the new partnership. The assets contributed by A1 appeared as follows in the statement of the financial position of her business: cash, P8,000; accounts receivable, P188,000, with allowance for uncollectible accounts of P5,000; merchandise inventory, P419,000 and store equipment, P149,000 with accumulated depreciation of P14,000. freshman freshma A1 and A2 agreed that the allowance for uncollectible accounts was inadequate and should be P10,000. They also agreed that the fair value for the inventory is P455.000 and the store equipment is P120.000. The cash contributed by A2 into the partnership is ______
A business owned by A1 was short of cash and she decided to form a partnership with A2, who was able to contribute cash 1.5 times the interest of A1 in the new partnership. The assets contributed by A1 appeared as follows in the statement of the financial position of her business: cash, P8,000; accounts receivable, P188,000; with allowance for uncollectible accounts of P5,000; merchandise inventory, P419,000 and store equipment, P149,000 with accumulated depreciation of P14,000. A1 and A2 agreed that the allowance for uncollectible accounts was inadequate and should be P10,000. They also agreed that the fair value for the inventory is P455,000 and the store equipment is P120,000. The cash contributed by A2 into the partnership is ____.
The CAB Partnership,although operating profitably, has had a cash flow problem. Unable to meet its current commitments, the firm borrowed $34,000 from a bank giving a long-term note. During a recent meeting, the partners decided to obtain additional cash by admitting a new partner to the firm. They feel that the firm is an attractive investment, but that proper management of their liquid assets will be required. Meyers agrees to invest cash in the firm if her chief accountant can review the accounting records of the partnership. The balance sheet for CAB Partnership as of December 31, 2008, is as follows: Assets Cash...............$ 8,000 Accounts Receivable........33,600 Inventory (at cost) ........35,750 Land..............27,000 Building (net of depreciation)....41,600 Equipment (net of depreciation) ...27,250 Total..............$173,200 Liabilities and Capital Accounts Payable...........$ 32,450 Other Current Liabilities........6,750 Long-Term Note (8% due 2008) ..34,000 Cox,…
When Conde and Dalmacio, partners who share earnings equally, were incapacitated in an airplane accident, a liquidator was appointed to wind up their business. the accounts showed cash, P70,000; other assets, P220,000; liabilities, P40,000; Conde's Capital, P142,000; and Dalmacio's Capital, P108,000. Because of the highly speacialized nature of the non cash assets, the liquidator anticipated that considerable time would be required to dispose them. the expenses of the liquidating business (advertising, rent, travel, etc) are estimated at P20,000Determine the amoint of cash that can be distributed safely to each partner using the Safe Cash Distribution Method.
KATY, a sole proprietor wanted to expand her profitable business but she does not have enough resources. So, she thought of inviting PERRY to join her and formed a partnership on April 1, 2020. Just before admission, KATY had the following assets and liability accounts: Cash - ₱420,000; Accounts receivable -₱380,000; Inventories -₱250,000;Notes payable -₱100,000. PERRY agreed to contribute cash equal to 30% of KATY’s capital after considering the following adjustments: (a) 2% allowance for bad debts should be recognized, (b) the inventories have fair market value equal to 120% of the balance. How much should Perry contribute to the partnership?
KATY, a sole proprietor wanted to expand her profitable business but she does not have enough resources. So, she thought of inviting PERRY to join her and formed a partnership on April 1, 2020. Just before admission, KATY had the following assets and liability accounts: Cash - ₱420,000; Accounts receivable -₱380,000; Inventories -₱250,000; Notes payable -₱100,000. PERRY agreed to contribute cash equal to 30% of KATY’s capital after considering the following adjustments: (a) 2% allowance for bad debts should be recognized, (b) the inventories have fair market value equal to 120% of the balance. How much is the total assets of the partnership after the formation? *
KATY, a sole proprietor wanted to expand her profitable business but she does not have enough resources. So, she thought of inviting PERRY to join her and formed a partnership on April 1, 2020. Just before admission, KATY had the following assets and liability accounts: Cash - ₱420,000; Accounts receivable -₱380,000; Inventories -₱250,000;Notes payable -₱100,000. PERRY agreed to contribute cash equal to 30% of KATY’s capital after considering the following adjustments: (a) 2% allowance for bad debts should be recognized, (b) the inventories have fair market value equal to 120% of the balance. How much is the total assets of the partnership after the formation?
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash - $66,000 Noncash - $231,000 Liabilities - $46,000 Frick, capital (60%) - $135,000 Wilson, capital (20%) - $37,000 Clarke, capital (20%) - $79,000 The following transactions occured in liquidating its business: Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. Sold noncash assets with a book value of $98,000 for $66,000. Paid all liabilities. Distributed safe payments of cash again. Sold remaining noncash assets for $53,000. Paid actual liquidation expenses of $8,000 only. Distributedremainingcashtothepartnersandclosedthefinancialrecordsofthebusinesspermanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of…
D was tasked to buy all the coffee beans supplies for the partnership. The accountant of the partnership gave D P100,000.00. When D was about to pay the coffee beans, D found out that he was lacking P50,000.00. So that he will not be delayed in delivering the coffee beans, D gave an additional P50,000.00. What right can D avail to get back his P50,000.00? He has the remedy for accounting He has the remedy for return of the capital He has the remedy to file for reimbursement He has the remedy for information
A, B AND C are sole proprietors looking to form a new partnership. A is to be contributed cash of 150,000 and his delivery vehicle originally bought at 160,000 but has a second hand value 100,000. B is to contribute cash amounting to 200,000 and furniture worth 40,000 but was only aquired for 36,000. Partner C, whose family business is to sell computers contributed cash of 80,000 and computers and printers with a regular price of 160,000 but with a cost of 140,000. ABC partnership stipulates their P and L ratio to be 3:2:3. what is the capital balances of A, B AND C?
Ana, Bea and Carol decided to form a partnership contributing the following items. Ana is to invest her existing business in the partnership consisting of the following accounts; cash of P20,000; accounts receivable of P50,000; inventory P30,000; fixtures of P40,000; payables of P12,000. Bea on the other hand is to invest cash of P15,000 and a delivery truck costing P30,000 but is mortgaged with the bank for P20,000. The partners agree that the receivables will re have a 90% realizable value. The inventory would be valued at P20,000. P5,000 of the payables would be paid prior to the formation of the partnership. The delivery truck would have a 20% increase in its market value. The partnership will shoulder only 80% of the mortgage and Carol is to invest cash to be able to have a 40% interest in the partnership.How much cash should Carol invest in the newly formed partnership?A. 61,200 B. 138,000 C. 60,800 D. 102,000

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