Required: 1. Prepare the journal entries for the following: a. To close the books of Amos' proprietorship. b. To record the investments of Amos in the partnership books. c. To close the books of Anah's sole proprietorship. d. To record the investments of Amos in the partnership books. 2. Prepare the balance sheet of Amos and Anah partnership upon formation.
Required: 1. Prepare the journal entries for the following: a. To close the books of Amos' proprietorship. b. To record the investments of Amos in the partnership books. c. To close the books of Anah's sole proprietorship. d. To record the investments of Amos in the partnership books. 2. Prepare the balance sheet of Amos and Anah partnership upon formation.
Chapter21: Partnerships
Section: Chapter Questions
Problem 65P
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Transcribed Image Text:proprietorships into a partnership. They agreed that their respective
Accounting for Partnership Formation
4 Total liabilities of the partnership upon formation.
3. The net assets of the partnership upon formation.
5. Total cash of the partnership upon formation.
Case 1: Amos and Anah agreed to convert their respective sole
individual assets and liabilities are to be recorded at their book value. They
Chapter 3:
95
Sole Proprietors Form a Partnership
Problem 3-11
ll contribute additional cash to bring their capital balance to 40% for Amos
nd % for Anah from the total agreed capitalization of P250,000. Their sole
proprietorship's balance sheets before the partnership formation are as
follows:
Amos
P 5,000
95,000
180,000
150,000
50,000
Anah
P 10,000
100,000
200,000
250,000
Cash
Accounts receivable
Equipment
Accounts payable
Notes payable
Required:
1. Prepare the journal entries for the following:
a. To close the books of Amos' proprietorship.
b. To record the investments of Amos in the partnership books.
c. To close the books of Anah's sole proprietorship.
d. To record the investments of Amos in the partnership books.
2. Prepare the balance sheet of Amos and Anah partnership upon formation.
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