Question
Gogola and Paglinawan have just formed a partnership. Gogola contributed cash of P1,260,000 and computer equipment that cost P540,000. The fair value of the computer
Gogola and Paglinawan have just formed a partnership. Gogola contributed cash of
P1,260,000 and computer equipment that cost P540,000. The fair value of the computer is P360,000. Gogola has notes payable on the computer of P120,000 to be
assumed by the partnership. Gogola is to have 60% capital interest in the partnership.
Paglinawan contributed only P900,000. The partners agreed to share profit and loss
equally.
Required:
1. Prepare Journal Entry to record Gogola and Paglinawan initial investment
2. Compute for Gogola's additional investment or (withdrawal) knowing he should
have 60% capital interest in the partnership.
3. Prepare the Statement of Financial Position as at the date of formation of the
partnership
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started