Two Sole Proprietors form a Partnership Calaguas and Dela Cruz formed a partnership and invested the following assets liabilities: Fair market value Carrying Value Calaguas: Cash 300,000 300,000 Land 450,000 280,000 Dela Cruz: Cash. 100,000 100,000 Building 600,00 520,000 Mortgage Payable (400,000) (400,000) The partners will share profits and losses equally. Required: Prepare the opening journal entry in the books of the partnership.
Two Sole Proprietors form a Partnership Calaguas and Dela Cruz formed a partnership and invested the following assets liabilities: Fair market value Carrying Value Calaguas: Cash 300,000 300,000 Land 450,000 280,000 Dela Cruz: Cash. 100,000 100,000 Building 600,00 520,000 Mortgage Payable (400,000) (400,000) The partners will share profits and losses equally. Required: Prepare the opening journal entry in the books of the partnership.
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 12.3APE
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Problem #4 Two Sole Proprietors form a Partnership
Calaguas and Dela Cruz formed a partnership and invested the following assets liabilities:
Fair market value Carrying Value
Calaguas:
Cash 300,000 300,000
Land 450,000 280,000
Dela Cruz:
Cash. 100,000 100,000
Building 600,00 520,000
Mortgage Payable (400,000) (400,000)
The partners will share
Required:
Prepare the opening
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