Prepare the opening entry for the formation of the Partnership L and W as of July 1, using fair values.

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Homework Activity 1 A, B and C are in Partnership sharing profits and losses in the ratio of 2:1:1. During the year ending 31st Dec 2019, the business made a profit of RO 64,000 before providing Interest on capital : A 2,000, B 1500, C 1000 Interest on drawings: A 200, B 150, C 100 Salary to Partners A 500 B 700 C 600 Commission to Partners A 200 B 300 C 400 Prepare a profit and loss appropriation account to show the distribution of profit among the partners.

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Chapter 19, Problem 6SPB

To determine

Prepare the opening entry for the formation of the Partnership L and W as of July 1, using fair values.

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Homework Activity 1 A, B and C are in Partnership sharing profits and losses in the ratio of 2:1:1. During the year ending 31st Dec 2019, the business made a profit of RO 64,000 before providing Interest on capital : A 2,000, B 1500, C 1000 Interest on drawings: A 200, B 150, C 100 Salary to Partners A 500 B 700 C 600 Commission to Partners A 200 B 300 C 400 Prepare a profit and loss appropriation account to show the distribution of profit among the partners.

Chapter 1-Accountring for Partnership Formation & Operation On March 1, of the current year, PP and QQ decide to combine their businesses and form a partnership. Their balance sheets on March 1, before adjustments. MULTIPLE CHOICE (PROBLEMS) QQ PP 9,000.00 18,500.00 30,000.00 30,000.00 11,500.00 6,375.00 105,375.00 45,750.00 59,625.00 105,375.00 3,750.00 13,500.00 19,500.00 9,000.00 2,750.00 3,000.00 51,500.00 18,000.00 33,500.00 51,500.00 showed the following: P Cash Accounts Receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses Total P. Accounts Payable Capital Total P They agreed to have the following items recorded in their books: a. Provide 2% allowance for doubtful accounts. b. PP's furniture and fixtures should be P31,000, while QQ's office equipment is under-depreciated by P250. c. Rent expense incurred previously by PP was not yet recorded amounting to P1,000, while salary expense incurred by QQ was not also recorded amounting to P800. d.…

PARTNERSHIP OPENING ENTRIES On July 1, 20--, Susan Woodworth and Barbara Holly combined their two businesses to form a partnership under the firm name of Woodworth and Holly. The balance sheets of the two sole proprietorships are shown below and on the next page.The balance sheets reflect fair market values except for the following:(a) The fair market value of Woodworth’s store equipment is $7,500.(b) The fair market values of Holly’s office equipment and store equipment are $6,100 and $6,800, respectively.RequiredPrepare the opening entry for the formation of the Woodworth and Holly partnership as of July 1, 20--, using fair market values. The difference between assets invested and liabilities assumed should be credited to each partner’s capital account. Neither partner has knowledge of any uncollectible accounts receivable.