Parcoac C1 - Formation Probs

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#1

Froilan Labausa contributed land, inventory, and 280,000 cash to a partnership. The land has a book value of 650,000 and
and a market value of 510,000. The partnership also assumed a 350,000 note payable owed by Labausa that was used to p
Labausa's Net Investment.

Required:
Perpare the journal entry to record Labausa's and Balhag's investment in the partnership
Statement of Financial position
CV FMV Change Labausa Adjusting Entries
Cash 280,000 280,000 0 Land
Land 650,000 1,350,000 700,000 Inventory
Inventory 600,000 510,000 -90,000 Labausa Capital
Note Payable -350,000 -350,000 0
Labausa Net Inv 1,180,000 1,790,000 610,000

Labausa Partnership Investment Balhag Partnership Investment


Cash 280,000 Cash
Land 1,350,000 Balhag Capital
Inventory 510,000
Notes Payable 350,000
Labausa Capital 1,790,000

Labausa and Balhag Co.


Statement of Financial Position
Jan. 1, 20x1
Assets
Cash 2,070,000
Land 1,350,000
Inventory 510,000
3,930,000
Liabilities and Owner's Equity
Note Payable 350,000
Labausa Capital 1,790,000
Balhag Capital 1,790,000
3,930,000

#2
Sabio, as her original investment in the firm of Sabio and Mariano, contributed equipment that had been recorded in the b
of 620,000. The partners agreen on a Valuation of 400,00. they also agreed to accept Sabio's accounts receivable of 360,00
Required:
Perpare the journal entry to record Sabio's investment in the partnership
Statement of Financial position
CV FMV Change Sabio Adjusting Entries
Equipment 280,000 400,000 120,000 Accumulated Depreciation
Acc. Rec. 360,000 306,000 - 54,000 Equipment
640,000 706,000 66,000
Equipment
Allowance for Bad Debt
Accounts Receivable
Sabio Capital
Labausa and Balhag Co.
Statement of Financial Position Sabio Partnership Investment
Jan. 1, 20x1 Equipment
Assets Accounts Receivable
Cash 706,000 Sabio capital
Equipment 400,000
Acc. Rec. 306,000 P.S. Assuming Mariano opted to use cash and match
1,412,000
Liabilities and Owner's Equity
Sabio capital 706,000
Mariano Capital 706,000
1,412,000

#3
Gogla and Paglinawan have just formed a partnership. Gogla contributed cash of 1,260,000 and computer equipment that
gogola has notes payable on the computer of 120,000 to be assumed by the partnership. Gogola is to have 60% capital int
partners agreed to share tprofit and loss equally.

Goglola should make and additonal investment or withdrawal of ______.


Required:
Perpare the journal entry to record Gogola and paglinawaninvestment in the partnership
Statement of Financial position
CV FMV Change Gogola Adjusting Entries
Cash 1,260,000 1,260,000 0 Gogola Capital
Computer Equi 540,000 360,000 -180,000 Computer Equi
Notes Payable - Comp -120,000 -120,000 0
1,680,000 1,500,000 -180,000

Gogola and Paglinawan Co. Gogola Partnership Investment


Statement of Financial Position Cash
Jan. 1, 20x1 Computer Equi
Assets Notes Payable -Comp
Cash 2,010,000 Gogola Capital
Computer Equi 360,000
2,370,000 Gogola Capital
Liabilities and Owner's Equity Gogola Drawings
Notes Payable - Comp 120,000
Gogola Capital 1,500,000 Goglola should make and additonal investment or wit
Gogola, Drawings -150,000 900,000/.4 = 2,250,000
Paglinawan Capital 900,000 2,250,000-900,000 = 1,350,000
2,370,000 1,350,000-1,500,000=- 150,000

#4
Two sole proprietors form a partnership
Calaguas and Dela Cruz formed a partnership and invested the following assets and liabilities:
Calaguas FMV CV
Cash 300,000 300,000
Land 450,000 280,000

Dela Cruz
Cash 100,000 100,000
Building 600,000 520,000
Mortgage Payable -400,000 -400,000

The partners will share profits and loses equally

Required:
Perpare the journal entry to record Calaguas and Dela Cruz investment in the partnership
Statement of Financial position

Calaguas CV FMV Change Calaguas Adjusting Entries


Cash 300,000 300,000 0 Land
Land 280,000 450,000 170,000 Calaguas Capital
Net Investment 580,000 750,000
Dela Cruz
Cash 100,000 100,000 0 Dela Cruz Adjusting Entries
Building 520,000 600,000 80,000 Building
Mortgage Payable -400,000 -400,000 0 Dela Cruz Capital
Net Investment 220,000 300,000

Calaguas and Dela Cruz Co.


Statement of Financial Position Calaguas Partnership Investment
Jan. 1, 20x1 Cash
Assets Land
Cash 400,000 Calaguas Capital
Land 450,000
Building 600,000
1,450,000
Liabilities and Owner's Equity
Mortage Payable 400,000
Calaguas Capital 750,000
Dela Cruz Capital 300,000
1,450,000

#5
A Sole Proprietor and an individual with no business form a partnership
Espanol operated a speciality shop that sold fishing equipment and accessories. Her post-closing trial balance on Dec. 31, 2
Fish
Post Closing Trial Balance
Dec. 31, 2018
DR CR
Cash 36,000
Accounts Receivable 150,000
Allowance for Uncollectible Accounts 16,000
Inventory 440,000
Equipment 135,000
Accumulated Depreciation 75,000
Accounts Payable 30,000
Espanol, Capital 640,000
761,000 761,000

Espanol plans to enter into a partnership with a trusted associate, Quino, effective Jan. 1, 2019. Profits or losses will be sha
top the partnership after revaluation.

Quino will invest cash equal to Espanol's investment after revaluation. The agreed values are as follows: accounts receivab
partnership will operate under the business name of Fishy PU Z

Required:
Prepare the opening journal entries in the books of the partnership.
Statement of Financial position
CV FMV Change Espanol Adjusting Entries
Cash 36,000 36,000 0 Accumulated
Accounts Receivable 150,000 140,000 -10,000
Allowance for Uncollectible Accounts -16,000 -26,000 -10,000
Inventory 440,000 460,000 20,000 Equipment
Equipment 60,000 124,000 64,000
Accounts Payable -30,000 -30,000 0
Espanol, Capital 640,000 704,000 Inventory

Fishy PU Z Co.
Statement of Financial Position Espanol Capital
Jan. 1, 2019 Allow. UA
Assets
Cash 740,000
Acc. Rec. 140,000
Inventory 460,000 Espanol Partnership Investmen
Equipment 124,000 Cash
1,464,000 Accounts Receivable
Liabilities and Owner's Equity Inventory
Accounts Payable 30,000 Equipment
Espanol Capital 730,000
Quino Capital 704,000
1,464,000
s a book value of 650,000 and a market value of 1,350,000. The inventory has a book value of 600,000
by Labausa that was used to purchase the land. Rosalie Balhag agreed to put up cash equivalent to

Labausa Closing Entries


700,000 Labausa Capital 1,790,000
90,000 Note Payable 350,000
610,000 Cash 280,000
Land 1,350,000
Inventory 510,000

1,790,000
1,790,000

hat had been recorded in the books of her own business as costing 900,000, with accumulated depreciation
s accounts receivable of 360,000, realizable to the extent of 85%

Sabio Closing Entries


620,000 Sabio Capital 706,000
620,000 Equipment 400,000
Accounts Receivable 306,000
120,000
54,000
54,000
120,000

Mariano Partnership Investment


400,000 Cash 706,000
306,000 Mariano Capital 706,000
706,000

o opted to use cash and match Sabio's net investment

and computer equipment that cost 540,000. The fair value of the computer equipment is 360,000.
ogola is to have 60% capital interest in the partnership. Paglinawan contributed only 900,000. The

Gogola Closing Entries


180,000 Gogola Capital 1,500,000
180,000 Notes Payable -Comp 120,000
Cash 1,260,000
Computer Equi 360,000

60% Paglinawan Partnership Investment 40%


1,260,000 Cash 900,000
360,000 Paglinawan Capital 900,000
120,000
1,500,000

150,000
150,000

nd additonal investment or withdrawal of ______.


100%
60%
Withdrawal
justing Entries Calaguas Closing Entries
170,000 Calaguas Capital 750,000
alaguas Capital 170,000 Cash 300,000
Land 450,000

djusting Entries Dela Cruz Closing Entries


80,000 Dela Cruz Capital 300,000
ela Cruz Capital 80,000 Mortgage Payable 400,000
Cash 100,000
Building 600,000

rtnership Investment Dela Cruz Partnership Investment


300,000 Cash 100,000
450,000 Building 600,000
alaguas Capital 750,000 Dela Cruz Capital 300,000
Mortgage Payable 400,000

osing trial balance on Dec. 31, 2018 is as follows:


19. Profits or losses will be shared equally. Espanol is to transfer all assets and liabilities of her shop

e as follows: accounts receivable (net), 140,000; inventory, 460,000; and equipment (net), 124,000. The

spanol Adjusting Entries Espanol Closing Entries


ccumulated 75,000 Espanol Capital 704,000
Equipment 75,000 Accounts Payable 30,000
Allow. UA 26,000
64,000 Cash 36,000
Espanol Capital 64,000 Accounts Receivable 140,000
Inventory 460,000
20,000 Equipment 124,000
Espanol Capital 20,000

spanol Capital 11,000


10,000
A/R 10,000
Equipment 11,000

spanol Partnership Investment Quino Partnership Investment


36,000 Cash 704,000
ccounts Receivable 140,000 Quino Capital 704,000
460,000
124,000
Espanol Capital 730,000
Accounts Payable 30,000

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