Instruction: Write letter "T" if the statement is true and "F" if false. 1. In a sole proprietorship, there is only capital and drawing account as only being one owner. 2. The partnership form of business organization is suited to the practice of profession because personalize nature of the services offered by professional. 3. An industrial partner shares only in profits but not in losses. 4. An industrial partner is like a general partner is also liable to partners' debts up to the extent of his personal assets 5. A partner who contributes labor and skills to the partnership is said to be an industrial partner 6. In a limited partnership, there should at least being one general partner to assume the partnership obligation 7. A creditor can run after the personal assets of general partner but not the limited partners. 8. General professional partnerships are exempted from the 30% income tax rate except the respective partner's share in profit whether distributed or not are subject to tax. 9. A non-general professional partnerships are subjected to 30% income tax rate except the respective partners' share in profit. 10. To restate that value of an old asset to conform with its market value is termed as "asset revaluation" Exercise 16-2 Kent Maula, Reynaldo Montecina and Jermy Maceda have decided to for a partnership business for the first time. Their respective contributions consisted of the following: Maula contributed cash P150,000 and Furniture and Fixtures worth P100,000 but has a fair market value of P120,000; Montecina contributed a brand new delivery van which he acquired from Kia Motors at P850,000 and a balance of P100,000 from a financing company aside from his P50,000 cash contributions Maceda's contribution was his expertise in managing the affair of the business and is given a 15% share in profit. Required: 1. Prepare a compound journal entry to open the partnership book assuming: a. The P100,000 balance from a financing company is assumed by the partnership. b. The P100,000 balance from a financing company is not assumed by the partnership