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Parcoac C1 - Formation Probs
Parcoac C1 - Formation Probs
Parcoac C1 - Formation Probs
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
#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.
#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
Required:
Perpare the journal entry to record Calaguas and Dela Cruz investment in the partnership
Statement of Financial position
#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
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%
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
150,000
150,000
e as follows: accounts receivable (net), 140,000; inventory, 460,000; and equipment (net), 124,000. The