6 On December 31, the financial position of Robert Ang's business appears below: ASSETS LIABILITIES & CAPITAL Notes Payable Accounts Payable Wages Payable Cash Accounts Receivable Notes Receivable Inventories Machinery Less Accumulated Depreciation Building P 80,000 56,000 45.000 Less Accumulated Depreciation 32,000 Land P 34,500 55,000 21,000 57,500 Ang, Capital 24,000 13,000 20,000 P 225,000 Ang agreed to the following terms before taking Bobby Roxas as a partner: a) Ang's assets, except for the cash, will be taken over and the liabilities be assumed b the partnership subject to the following adjustments: 1 Accounts receivable has a net realizable value of P50,000. P 12,500 40,000 1.500 171,000 2 Inventories should be valued at P58,000. 3. Accrued interest of P500 on customers' notes should be set up. P225,000 b) Roxas will invest cash of P120,000 which represents 2/5 of the partnership interest Required: a) How much is the net tangible asset contribution of Ang? b) To conform with the agreement, the land should be revalued. How much should be the revalued amount of the land? Asc 7. Using the data in exercise 6 but assume instead that Roxas will invest enough cash to make total partners' equity P300,000. Required: Make the entry to record Roxas' contribution including adjustment to effect the 40% interest. 5