Froilan Labausa contributed land, inventory, and P280,000 cash to partnership.The land has a book value of P650,000 and a market value P1,350,000.The inventory has a book value of P600,000 and a market value of P510,000.The partnership also assumed a P350,000 a note payable owed by Labausa that was used to purchase the land.Rosalie Balhag to put up cash equivalent to Labausa's net investment. Required: Prepare a journal entry to report Labausa's and Balhag's investment in the partnership.

Froilan Labausa contributed land, inventory, and P280,000 cash to partnership.The land has a book value of P650,000 and a market value P1,350,000.The inventory has a book value of P600,000 and a market value of P510,000.The partnership also assumed a P350,000 a note payable owed by Labausa that was used to purchase the land.Rosalie Balhag to put up cash equivalent to Labausa's net investment. Required: Prepare a journal entry to report Labausa's and Balhag's investment in the partnership.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 28P

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