Problem 1: Journal Entry

Partners Formation
3 partners formning a pratnership

Cash 700,000
DBM, Capital 700,000

Land and Building 2,187,500

MGX, Capital 2,187,500
2,887,500 2,887,500
Industry/Service for partner SPV
Memo entry: SPV is admitted as a industrial partner with share of 20% in profit

Problem 2:
A. Journal Entry Debit Credit
Cash 875,000
Equipment 4,375,000
JVC, Captial 5,250,000

Land 7,875,000
KRX, Capital 4,375,000
Mortgage Payable 3,500,000

B.
Land 7,875,000
KRX, Capital 7,875,000