CURSE: ACCOUNTING FOR SPECIAL TRANSACTIONS

1. SUNNY AND GLOOMY CONTRIBUTED THE FOLLOWING IN THE FORMATION OF A PARTNERSHIP BUSINESS:

sunny gloomy

CASH P 180k -

ACCOUNTS RECEIVABLE 100K -

INVENTORY 160K -

LAND ( AT HISTORICAL COST) 340,000

TOTAL 440,00 340,000

ADDITIONAL INFORMATION:

1. ONLY 60% OF THE ACCOUNTS RECEIVABLE IS RECOVERABLE.

THE NET REALIZABLE VALUE OF THE INVENTORY IS p120K. SUNNY

ACQUIRED ON THE INVENTORY ON ACCOUNT; THE PARTNERSHIP WILLASSUME THE UNPAID BALANCE OF P60K.

2. THE LND HAS A FAIR VALUE OF P600,00

requirement: provide the journal entry:

USE THE INFORMATION OF PROBLEM 1. SUNNY AND GLOOMY AGREED TO SHARE IN PROFITS AND LOSSES BASED ON A 30.70 RATIO. A PARTNER WITH DEFICIENT CONTRIBUTION SHALL PROVIDE ADDITIONAL CSAH IN ORDER TO HIS CAPITAL BALANCE TO REFLECT HIS PROFIT AND LOSS SHARING RATIO.

REQUIREMENT PROVIDE THE ENTRY RECORD THE ADDITIONAL INVESTMENT OF THE PARTNER WITH DEFICIENT CONTRIBUTION

3. USE THE INFORMATION IN PROBLEM 1 SUNNY AND GLOOMY AGREED TO HAVE EQUAL CREDITS TO THEIR CAPITAL ACCOUNTS. THE BONUS METHOD SHALL BE USED.

REQUIREMENTS:

A. PROVIDE THE COMPOUND JOURNAL ENTRY

B. PROVIDE THE SIMPLE JOURNAL ENTRY

4. USE THE INFORMATION IN PROBLEM 1. SUNNY AND GLOOMY AGREED TO HAVE EQUAL CREDITS TO THEIR CAPITAL ACCOUNTS. CASH SETTLEMENT IS TO BE NADE BETWEEN THE PARTNERS FOR THE ADJUSTMENTS ON THEIR CAPITAL BALANCES

REQUIREMENTS;

DESCRIBE HOW THE CASH SETTLEMENT SHOULD BE MADE AND HOW IT WOULD BE ACCOUNTED FOR IN THE PARTNERSHIP BOOKS

5. USE THE INFORMATION IN PROBLEM 1. SUNNY AND GLOOMY AGREED TO HAVE EQUAL CREDITS TO THEIR CAPITAL ACCOUNTS. ADDITIONAL INVESTMENT OR PARTIAL WITHDRAWAL SHALL BE MADE BY A PARTNER FROM THE PARTNERSHIP FOR ANY ADJUSTMENT TO HIS CAPITAL BALANCE.

REQUIREMENTS.

WHICH PARTNERSHOUD MAKE AN ADDITIONAL INVESTMENT AND WICHB PARTNER SHOULD MAKE A WITHDRAWAL?

P.S. HOW CAN I PASTE PICTURES NEXT IN MY SUCCEEDING QUESTIONS? CAUSE AM TIRED OF TYPING THANKS....