Question
Cath, Bart and Art formed a partnership by contributing 40%, 30% and 30% of the total agreed capital. The total cash contribution amounted to Php
- Cath, Bart and Art formed a partnership by contributing 40%, 30% and 30% of the total agreed capital. The total cash contribution amounted to Php 50,000, contributed by Cath and Bart. Noncash assets were contributed by Bart and Art, and the corresponding liability of Php 5,000 and Php 10,000 of Bart and Art were assumed by the partnership.
Right after the formation, the partnerships basic accounting equation is Php 115,000 assets, Php 15,000 liabilities and Php 100,000 capital.
Required: Prepare the journal entries to record the contribution of
1a. Cath
1b. Bart
1c. Art
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
