Books Problem 2-4. (Cosh, Non-coshond Net ACSet Contibutions used by the portnership) to be Proprietors of he On Jonuar , 2014, Abonte, Are valo, and Almante decided to Sole propre tor, will trans fer to net ossets, ex cluding cosh. Are volo wiln contribute investment form a portnership. A loonte, a the portner chip his holf times the and o equol to one contribute cosh Omaunt an tond with on Piece of Will of Abante. Almonte mortgoge Of PSoo, c0o o finonciol position o o PI.800, 000 subject agreed volue of 5umed by the potnersh.p. The ctotement to be chown of Abante 15 as Chaper 2-Nature and Formanion of a Partserske 68 Abante Company Statement of Financial Position January 1, 2014 Assets 360,000 P Cash Accounts Receivable Less Allowance for Uncollectible Accounts Merchandise Inventory Furniture and Equipment Less Accumulated Depreciation P 840,000 750,000 1,200,000 90,000 P 1,050,000 840,000 P 3,150,000 210,000 Total Assets Liabilities and Capital Accounts Payable Abante, Capital Total Liabilities and Capital P 450,000 2,700,000 P 3,150,000 The Articles of Co-Partnership executed for the purpose calls for adjustments to the assets, as follows: a. The allowance for uncollectible accounts should be increased by P150,000. b. The inventories should be valued at P1,000,000 only. e. The furniture and equipment are underdepreciated by P240,000. d. The new partnership is to credit Abante with a capital of P2,000,000. The excess. capital credit over the fair value of the net assets transferred is goodwill. be recognized as Instructions: Prepare the entries to record the partnership formation assuming The books of Abante are to be used by the partnership. 1. New set of books are to be opened for the partnership. 2. Problem 2-5 (Cash. Nan-cash and Net 4scts Contributions) Books Problem 2-4. (Cosh, Non-coshond Net ACSet Contibutions used by the portnership) to be Proprietors of he On Jonuar , 2014, Abonte, Are valo, and Almante decided to Sole propre tor, will trans fer to net ossets, ex cluding cosh. Are volo wiln contribute investment form a portnership. A loonte, a the portner chip his holf times the and o equol to one contribute cosh Omaunt an tond with on Piece of Will of Abante. Almonte mortgoge Of PSoo, c0o o finonciol position o o PI.800, 000 subject agreed volue of 5umed by the potnersh.p. The ctotement to be chown of Abante 15 as Chaper 2-Nature and Formanion of a Partserske 68 Abante Company Statement of Financial Position January 1, 2014 Assets 360,000 P Cash Accounts Receivable Less Allowance for Uncollectible Accounts Merchandise Inventory Furniture and Equipment Less Accumulated Depreciation P 840,000 750,000 1,200,000 90,000 P 1,050,000 840,000 P 3,150,000 210,000 Total Assets Liabilities and Capital Accounts Payable Abante, Capital Total Liabilities and Capital P 450,000 2,700,000 P 3,150,000 The Articles of Co-Partnership executed for the purpose calls for adjustments to the assets, as follows: a. The allowance for uncollectible accounts should be increased by P150,000. b. The inventories should be valued at P1,000,000 only. e. The furniture and equipment are underdepreciated by P240,000. d. The new partnership is to credit Abante with a capital of P2,000,000. The excess. capital credit over the fair value of the net assets transferred is goodwill. be recognized as Instructions: Prepare the entries to record the partnership formation assuming The books of Abante are to be used by the partnership. 1. New set of books are to be opened for the partnership. 2. Problem 2-5 (Cash. Nan-cash and Net 4scts Contributions)