of his xo follo book 11. Alice and Alex decide to merge their proprietorships into a partnership called AA Partners. Financial records showed the following: Alice Alex Cash P25,000 Accounts Receivable P32,000 Less: Allowance for ithpairment 2,400 P29,600 Inventory 30.000 Equipment 40,000 Less: Accumulated depreciation 14.000 26,400 The partners agree that the net realizable value of the receivables is P25,000 and that the fair value of the equipment is P22,000. Obsolete stock of P10,000 should be written off. Direction: a) Two investment entries supported by a table for adjusted and agreed capital based on the following independent situations: 1) Cash Method. Equal interest over the assets with additional investment required to meet this agreement 2) Goodwill Method. Alex investment represents 40% of total agreed equity. The excess capital for Alice is due to her strong connection in the electronic industry which will ensure a large client base for the partnership 3) Bonus Method, Equal interest over the partnership with no additional adjustment on the assets. Make a third entry for the bonus capital. 4) Revaluation Method. Alex investment represents 50% of total agreed equity. Total agreed capitalization is lesser than total actual contributions. They agreed that the investment in equipment should further be reduced, agar phic ture 53000 as follows: eceivable after 14. Steve owns a store selling health products and Guy owns a beauty salon They agreed to combine their businesses and call it Health and Beauty Shop Prior to the combination they agreed to review the assets and liabilities and make some necessary adjustments The following accounts are found in their statements of financial position Steve Guy Health Store Beauty Salon Cash P 25,000 P 11,000 Accounts Receivable 25,000 Merchandise Inventory 80,000 Supplies Inventory 15,000 25.000 Furniture and Equipment 50,000 85.000 Total P195.000 P121.000 by P80,00 eto investing will be given a Boks Solis ad capital credit record the dis. 1, 2019 bal Accounts Payable P 20,000 P5.000 Notes Payable 30,000 Capital 145.000 116.000 Total P195.000 P121.000 The partners agreed to the following conditions a P5,000 doubtful accounts should be recognized b. Furniture and Equipment should be at the market value of P35,000 for the health store and P70,000 for the beauty salon cP10,000 obsolete goods should be written off d Beauty supplies unused should only be P15,000 e Accrued interest should be recognized for P2,500 Direction a) List down the adjusted assets and liabilities of each partner to determine partner's capital b) To comply with an agreed equity of P100,000 for cach partner, show the additional cash to be invested or cash to be withheld by a partner. c) Prepare two entries to record the investments of the partners in the partnership books of his xo follo book 11. Alice and Alex decide to merge their proprietorships into a partnership called AA Partners. Financial records showed the following: Alice Alex Cash P25,000 Accounts Receivable P32,000 Less: Allowance for ithpairment 2,400 P29,600 Inventory 30.000 Equipment 40,000 Less: Accumulated depreciation 14.000 26,400 The partners agree that the net realizable value of the receivables is P25,000 and that the fair value of the equipment is P22,000. Obsolete stock of P10,000 should be written off. Direction: a) Two investment entries supported by a table for adjusted and agreed capital based on the following independent situations: 1) Cash Method. Equal interest over the assets with additional investment required to meet this agreement 2) Goodwill Method. Alex investment represents 40% of total agreed equity. The excess capital for Alice is due to her strong connection in the electronic industry which will ensure a large client base for the partnership 3) Bonus Method, Equal interest over the partnership with no additional adjustment on the assets. Make a third entry for the bonus capital. 4) Revaluation Method. Alex investment represents 50% of total agreed equity. Total agreed capitalization is lesser than total actual contributions. They agreed that the investment in equipment should further be reduced, agar phic ture 53000 as follows: eceivable after 14. Steve owns a store selling health products and Guy owns a beauty salon They agreed to combine their businesses and call it Health and Beauty Shop Prior to the combination they agreed to review the assets and liabilities and make some necessary adjustments The following accounts are found in their statements of financial position Steve Guy Health Store Beauty Salon Cash P 25,000 P 11,000 Accounts Receivable 25,000 Merchandise Inventory 80,000 Supplies Inventory 15,000 25.000 Furniture and Equipment 50,000 85.000 Total P195.000 P121.000 by P80,00 eto investing will be given a Boks Solis ad capital credit record the dis. 1, 2019 bal Accounts Payable P 20,000 P5.000 Notes Payable 30,000 Capital 145.000 116.000 Total P195.000 P121.000 The partners agreed to the following conditions a P5,000 doubtful accounts should be recognized b. Furniture and Equipment should be at the market value of P35,000 for the health store and P70,000 for the beauty salon cP10,000 obsolete goods should be written off d Beauty supplies unused should only be P15,000 e Accrued interest should be recognized for P2,500 Direction a) List down the adjusted assets and liabilities of each partner to determine partner's capital b) To comply with an agreed equity of P100,000 for cach partner, show the additional cash to be invested or cash to be withheld by a partner. c) Prepare two entries to record the investments of the partners in the partnership books
