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11. Alice and Alex decide to merge their proprietorships into a partnership called AA Partners, Financial records showed the Alice his so partne Alex P25,000

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11. Alice and Alex decide to merge their proprietorships into a partnership called AA Partners, Financial records showed the Alice his so partne Alex P25,000 follow 30.000 books Cash Accounts Receivable P32,000 Less: Allowance for impairment 2.400 P29,600 Inventory Equipment 40,000 Less: Accumulated depreciation 14.000 26.400 The partners agree that the net realizable value of the receivables is P25,000 and that the fair value of the equipment is P22,000. Obsolete stock of P10,000 should be written off. Direction a) Two investment entries supported by a table for adjusted and agreed capital based on the following independent situations: 1) Cash Method Equal interest over the assets with additional investment required to meet this agreement 2) Goodwill Method. Alex investment represents 40% of total agreed equity. The excess capital credit for Alice is due to her strong connection in the electronic industry which will ensure a large client base for the partnership. 3) Bonus Method. Equal interest over the partnership with no additional adjustment on the assets Make a third entry for the bonus capital b) Present the statement of financial position using each of the above situations. ag are 1 price iture 000 Ft 11. Alice and Alex decide to merge their proprietorships into a partnership called AA Partners, Financial records showed the Alice his so partne Alex P25,000 follow 30.000 books Cash Accounts Receivable P32,000 Less: Allowance for impairment 2.400 P29,600 Inventory Equipment 40,000 Less: Accumulated depreciation 14.000 26.400 The partners agree that the net realizable value of the receivables is P25,000 and that the fair value of the equipment is P22,000. Obsolete stock of P10,000 should be written off. Direction a) Two investment entries supported by a table for adjusted and agreed capital based on the following independent situations: 1) Cash Method Equal interest over the assets with additional investment required to meet this agreement 2) Goodwill Method. Alex investment represents 40% of total agreed equity. The excess capital credit for Alice is due to her strong connection in the electronic industry which will ensure a large client base for the partnership. 3) Bonus Method. Equal interest over the partnership with no additional adjustment on the assets Make a third entry for the bonus capital b) Present the statement of financial position using each of the above situations. ag are 1 price iture 000 Ft

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