LEARNING TASK NO. 1GENERAL INSTRUCTION: Write your solution and answer on a separate paper and putinitials/signature on every final answer.Problem #1Pedro and Jose form a partnership for the first time. Their investments are; Pedro is to invest cash amounting to P 70,000 and Jose is to contribute Merchandise inventory at a P 10,000 cost with fair value of P 20, 000 and Computerequipment at a cost of P 50, 000 with a fair value of P 30, 000.Required:Prepare the necessary journal entries to record the investment of each partner.Problem #2Jose has been operating a retail store for a number of years. A statement of financial position on July 1, 2021 isprepared for Jose Company as follows:AssetsCashAccounts receivableP 60, 00050, 000InventoryEquipmentLess: Accumulated Depreciation70, 000P 40, 0004. 000 36, 000P 216, 000Total AssetsLiabilities and EquityP 86, 000Accounts payableJose CapitalTotal Liabilities and Equity130, 000P 216, 000Jose needs additional capital to meet the increasing sales and offers Pedro and Interest in the business. Jose and Pedroagree to form a partnership to be known as JP Partnership; Jose's business is audited and its net assets are appraised.The audit and appraisal shows the following:1. Allowance for bad debts of P 5,000 is to be provided.2. Inventory is to be recorded at its fair market value of P 80, 000.3. The equipment is to be valued at 35, 0004. P 2, 000 of accounts payable has not been recorded.On July 1, 2021 Pedro contribute P 100, 000 cash for a one-third capital interest. The JP Partnership is to acquire allof Jose's business and assume its liabilities.Required:Prepare the necessary journal entries to record the formation of the partnership.

Hi student Since there are multiple questions, we will answer only first question.

Pedro and Jose form a partnership for the first time. Their investments are; Pedro is to invest cash amounting to P 70, 000 and Jose is to contribute Merchandise inventory at a P 10,000 cost with fair value of P 20, 000 and Computer equipment at a cost of P 50, 000 with a fair value of P 30, 000. Required: Prepare the necessary journal entries to record the investment of each partner.

Pedro and Jose form a partnership for the first time. Their investments are; Pedro is to invest cash amounting to P 70, 000 and Jose is to contribute Merchandise inventory at a P 10,000 cost with fair value of P 20, 000 and Computer equipment at a cost of P 50, 000 with a fair value of P 30, 000. Required: Prepare the necessary journal entries to record the investment of each partner.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.11P

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