please answer number 5. thank you The conditions agreed by the partners for purposes of determining their interests in the partnership are presentedbelow:10% of accounts receivable is to be set up as uncollectible in each book.b. Merchandise inventory of Henry is to be increased by P 1, 000.The furniture and fixtures of Gerry and Henry are to be depreciated by P 600 and P 900 respectively.a.c.Required:Prepare the necessary journal entries to record the formation of the partnership.Problem #4Froilan Labausa contributed land, inventory and P 280,000 cash to a partnership. The land has a book value of P 650,000 and a market value of P 1,350,000. The inventory has a book value of P 600,000 and a market value of P 510,000.The partnership also assumed a P 350,000 note payable owed by Labausa that was used to purchase the land. RosalieBalhag agreed to put up cash equivalent to Labausa's net investment.REQUIRED: prepare the journal entry to record Labausa's and Balahag's investment in the partnership.Problem #5Sabio, as her original investment in the firm of Sabio and Mariano, contributed equipment that had been recorded inthe books of her own business as costing P 900, 000, with accumulated depreciation of P 620, 000. The partners agreedon a valuation of P 400, 000. they also agreed to accept Sabio's accounts receivable of P 360, 000, realizable to theextent of 85%.REQUIRED: Prepare the journal entry to record Sabio's investment in the partnership.Problem #6Gogola and Paglinawan have just formed a partnership. Gogola contributed cash of P 1,260,000 and computerequipment that cost P 540,000. The fair value of the computer is P 360,000. Gogola has notes payable on the computerof P 120,000 to be assumed by the partnership. Gogola is to have a 60% capital interest in the partnership. Paglinawancontributed only P 900,000. The partners agreed to share profits and loss equally.Gogola should make an additional investment or (withdrawal) of?

Answered: Image /qna-images/answer/c578ddc1-55dd-4c8b-a1fe-f780b25e6b61.jpg

greed by the mers for purposes of dete nen nterests in tne parthe of accounts receivable is to be set up as uncollectible in each book. handise inventory of Henry is to be increased by P 1, 000. urniture and fixtures of Gerry and Henry are to be depreciated by P 600 and P 900n

greed by the mers for purposes of dete nen nterests in tne parthe of accounts receivable is to be set up as uncollectible in each book. handise inventory of Henry is to be increased by P 1, 000. urniture and fixtures of Gerry and Henry are to be depreciated by P 600 and P 900n

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

CC admits DD as a partner in business. Accounts in the ledger for CC on November 30, 20x4, just before the admission of DD, show the following balances: Cash.... P 6,800 Accounts Receivable... 14,200 Merchandise Inventory... 20,000 Accounts Payable.. . 8,000 CC, Capital... 33,000 It is agreed that for the purposes of establishing CC's interest the following adjustments shall be made: 1. An allowance for doubtful accounts of 3% of account receivable is to be established. 2. The merchandise inventory is to be valued at P23,000. 3. Prepaid salary expenses of P600 and accrued rent expense of P800 are to be recognized. 1 DD ic to invest sufficient cash to obtain a 1/3 interest in the
The conditions agreed by the partners for purposes of determining their interests in the partnership are presented below: 10% of accounts receivable is to be set up as uncollectible in each book. b. Merchandise inventory of Henry is to be increased by P 1, 000. The furniture and fixtures of Gerry and Henry are to be depreciated by P 600 and P 900 respectively. a. c. Required: Prepare the necessary journal entries to record the formation of the partnership. Problem #4 Froilan Labausa contributed land, inventory and P 280,000 cash to a partnership. The land has a book value of P 650, 000 and a market value of P 1,350,000. The inventory has a book value of P 600,000 and a market value of P 510,000. The partnership also assumed a P 350,000 note payable owed by Labausa that was used to purchase the land. Rosalie Balhag agreed to put up cash equivalent to Labausa's net investment. REQUIRED: prepare the journal entry to record Labausa's and Balahag's investment in the partnership. Problem #5…
The following are the partnership agreement between partners Baby Love & Honey Sweet for their partnership’s profit distribution:A. Each partners shall be entitled for an annual salary of P50,000 each.B. 15% Bonus of partnership profits after salaries to Honey Sweet being a managing partner.C. 20% interest is given to both partners based on average capital ratio.D. Residual profit and loss shall be distributed on the ratio 2:2The ledgers of their capital balances are shown below: Baby Love Debit: July 1. P20,000 Credit: Jan 1. P80,000 Oct 1. P40,000 Honey Sweet Debit: Oct 1. P10,000 Credit: Jan 1. P120,000 May 1. 30,000 The partnership profit for the year is P150,000 before distribution to partners Required: 1. Prepare a Schedule for Profit Distribution.2. Journal entry to record the distribution of profit to partners.
Coburn (beginning capital, $60,000) and Webb (beginning capital $86,000) are partners. During 2022, the partnership earned net income of $74,000, and Coburn made drawings of $20,000 while Webb made drawings of $22,000.
A partnership began its first year of operations with the following capital balances: Young, Capital $ 143,000 Eaton, Capital $ 104,000 Thurman, Capital $ 143,000 The Articles of Partnership stipulated that profits and losses be assigned in the following manner: Young was to be awarded an annual salary of $26,000 and $13,000 salary was to be awarded to Thurman. Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year. The remainder was to be assigned on a 5:2:3 basis to Young, Eaton, and Thurman, respectively. Each partner withdrew $13,000 per year. Assume that the net loss for the first year of operations was $ 26,000 with net income of $52,000 in the second year. What was Thurman's total share of net income for the second year? Multiple Choice $17,160 income. $4, 160 income. $19,760 income. $ 17,290 income. $28,080 income.
A partnership began its first year of operations with the following capital balances: Young, Capital $ 143,000 Eaton, Capital $ 104,000 Thurman, Capital $ 143,000 The Articles of Partnership stipulated that profits and losses be assigned in the following manner: Young was to be awarded an annual salary of $26,000 and $13,000 salary was to be awarded to Thurman. Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year. • The remainder was to be assigned on a 5:2:3 basis to Young, Eaton, and Thurman, respectively. • Each partner withdrew $13,000 per year. Assume that the net loss for the first year of operations was $26,000 with net income of $52,000 in the second year. What was the balance in Young's Capital account at the end of the first year? ● ● Multiple Choice O $120,900 $118,300
The following transactions are shown in the records of A partner's capital and drawing accounts: A, capital 1. Beginning balance, 100,000 2. Correction of understement of prior year's income, 10,000 3. Additional invetsment, 240,000 A, drawing 1. Temporary withdrawals, 60,000 2. Partnership debts paid by A, 90,000 3. Partnership claims collected and retained by A, 20,000 The partnership has a debit income summary balance amounting to 150,000 of which 1/3 is the hsare of A. Required: 1.Make the journal entries to close the income summary account and to close the drawing account.
The following transactions are shown in the records of A partner's capital and drawing accounts: A, capital 1. Beginning balance, 100,000 2. Correction of understement of prior year's income, 10,000 3. Additional invetsment, 240,000 A, drawing 1. Temporary withdrawals, 60,000 2. Partnership debts paid by A, 90,000 3. Partnership claims collected and retained by A, 20,000 The partnership has a debit income summary balance amounting to 150,000 of which 1/3 is the hsare of A. Required: 1. Prepare the T-accountrs for A's capital and -account for A's drawing. Determine their respective ending balances. 2. Make the journal entries to close the income summary account and to close the drawing account. Problem II - Loans to and from Partners The loans to and…
After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $64,900 and $86,500, respectively. Lewan Gorman is to be admitted to the partnership, contributing $43,300 cash to the partnership, for which he is to receive an ownership equity of $50,500. All partners share equally in income. Required: a. On December 31, journalize the entry to record the admission of Gorman, who is to receive a bonus of $7,200. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. What are the capital balances of each partner after the admission of the new partner? c. Why are tangible assets adjusted to current market prices, prior to admitting a new partner?
The following transactions are shown in the records of A partner's capital and drawing accounts: A, capital 1. Beginning balance, 100,000 2. Correction of understement of prior year's income, 10,000 3. Additional invetsment, 240,000 A, drawing 1. Temporary withdrawals, 60,000 2. Partnership debts paid by A, 90,000 3. Partnership claims collected and retained by A, 20,000 The partnership has a debit income summary balance amounting to 150,000 of which 1/3 is the hsare of A. Required: 1. Prepare the T-accountrs for A's capital and -account for A's drawing. Determine their respective ending balances.
The following transactions are shown in the records of A partner's capital and drawing accounts: A, capital 1. Beginning balance, 100,000 2. Correction of understement of prior year's income, 10,000 3. Additional invetsment, 240,000 A, drawing 1. Temporary withdrawals, 60,000 2. Partnership debts paid by A, 90,000 3. Partnership claims collected and retained by A, 20,000 The partnership has a debit income summary balance amounting to 150,000 of which 1/3 is the hsare of A. Required: 1. Prepare the T-accountrs for A's capital and -account for A's drawing. Determine their respective ending balances. 2. Make the journal entries to close the income summary account and to close the drawing account. Answer it which can easily understand by a student
After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $44,920 and $60,890, respectively. Lewan Gorman is to be admitted to the partnership, contributing $32,080 cash to the partnership, for which he is to receive an ownership equity of $36,650. All partners share equally in income. Required: a. On December 31, journalize the entry to record the admission of Gorman, who is to receive a bonus of $4,570. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. What are the capital balances of each partner after the admission of the new partner? c. Why are tangible assets adjusted to current market prices, prior to admitting a new partner? Chart of…