Activity 3. Journal Entries: First Time in Business

1. ) A and B to contribute P250,000 each

2.) A, B and C to contribute the following:

A - Cash, P50,000

B - Land, acquired two years ago at P60,000. It present market value is P100,000.

C - Merchandise inventory with a fair market value of P80,000; quoted price of C is P100,000.

3 .) A, B and C to contribute the following:

A - Cash, P60,000 and equipment with a book value of P80,000. The partners agreed to value the equipment of P60,000.

B - Land with fair market value of P150,000. The land is subject to a mortgage of P30,000 to be assumed by the partnership.

C - Industrial partner who shares 25% in the partnership profits.

4.) A and B to contribute cash equal to the total agreed capitalization of P240,000. A to contribute one-third (1/3), and B to contribute two-thirds (2/3) of the total agreed capitalization.

5.) A to contribute cash of P140,000 for 40% of the total agreed capitalization. B to contribute the remaining in cash.

6.) A to contribute land with fair market value of P60,000 and book value of P50,000, plus cash. B to contribute P130,000 cash for 65% claim in the partnership.

7.)A to contribute land at agreed value of P75,000 and unpaid mortgage of P25,000 to be assumed by the partnership. B to contribute cash equal to 50% of total partnership's capitalization based on A's contribution.

8.) A to contribute his skill as industrial partner. B to contribute cash for the total partnership capitalization of P250,000.

9.) A to contribute his skill plus P50,000 cash as industrial-capitalist partner. B to contribute cash equal to 75% of total agreed capitalization.

10.) A to contribute in cash the 60% of the total partnership capitalization. B to contribute P140,000 based on agreed capitalization.