Partnerships: Basic Considerations and Formation | 477 The name of the partnership will be Medina and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Partnerships: Basic Considerations and Formation | 477 The name of the partnership will be Medina and Dalangin Hunting Gears. The partners have agreed to effect the following adjustments: a. Medina's merchandise inventory is to be reduced by P105,200. The inventory of Dalangin will be increased by P7,200. b. The following are the fair market values of the various assets: Land Building Office Equipment Repair Equipment Medina Dalangin P108,000 192,000 16,000 P40,000 124,000 c. One-half of the notes payable of Medina are personal notes. All other liabilities of the partners are assumed by the partnership. d. The prepaid rent in the books of Dalangin will be consumed by the partnership. Required: Prepare the journal entries to record the formation of the partnership. Problem #5 Two Sole Proprietors Form a Partnership Medina and Dalangin are fierce competitors who sell hunting equipment. They finally decided to join forces in order to increase their business and reduce costs. An agreement is reached between the two to begin operations as a partnership on Mar. 1, 2021. Medina and Dalangin have decided to share profits or losses in the ratio of 60:40, respectively. The statements of financial position of Medina and Dalangin as at Mar. 1, 2021 are as follows: Medina Dalangin Cash Accounts Receivable Allowance for Uncollectible Accounts P 42,000 P 30,000 389,200 169,200 (22,400) (14,400) Merchandise Inventory 461,600 300,800 Prepaid Rent 6,000 Office Supplies 30,400 4,000 Land 40,000 Building 128,000 Accumulated Depreciation (32,000) Office Equipment 24,000 62,000 Accumulated Depreciation (6,000) (13,200) Repair Equipment 172,000 Accumulated Depreciation (68,000) Total Assets P1,158,800 P544,400 Notes Payable Accounts Payable Mortgage Payable P 120,000 170,000 P111,600 200,000 Medina, Capital 668,800 Dalangin, Capital 432,800 Total Liabilities and Owners' Equity P1,158,800 P544,400 Partnerships: Basic Considerations and Formation | 477 The name of the partnership will be Medina and Dalangin Hunting Gears. The partners have agreed to effect the following adjustments: a. Medina's merchandise inventory is to be reduced by P105,200. The inventory of Dalangin will be increased by P7,200. b. The following are the fair market values of the various assets: Land Building Office Equipment Repair Equipment Medina Dalangin P108,000 192,000 16,000 P40,000 124,000 c. One-half of the notes payable of Medina are personal notes. All other liabilities of the partners are assumed by the partnership. d. The prepaid rent in the books of Dalangin will be consumed by the partnership. Required: Prepare the journal entries to record the formation of the partnership. Problem #5 Two Sole Proprietors Form a Partnership Medina and Dalangin are fierce competitors who sell hunting equipment. They finally decided to join forces in order to increase their business and reduce costs. An agreement is reached between the two to begin operations as a partnership on Mar. 1, 2021. Medina and Dalangin have decided to share profits or losses in the ratio of 60:40, respectively. The statements of financial position of Medina and Dalangin as at Mar. 1, 2021 are as follows: Medina Dalangin Cash Accounts Receivable Allowance for Uncollectible Accounts P 42,000 P 30,000 389,200 169,200 (22,400) (14,400) Merchandise Inventory 461,600 300,800 Prepaid Rent 6,000 Office Supplies 30,400 4,000 Land 40,000 Building 128,000 Accumulated Depreciation (32,000) Office Equipment 24,000 62,000 Accumulated Depreciation (6,000) (13,200) Repair Equipment 172,000 Accumulated Depreciation (68,000) Total Assets P1,158,800 P544,400 Notes Payable Accounts Payable Mortgage Payable P 120,000 170,000 P111,600 200,000 Medina, Capital 668,800 Dalangin, Capital 432,800 Total Liabilities and Owners' Equity P1,158,800 P544,400
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
What is the force on the charge q at the lower-left-hand corner of the square shown here? a 9 + q Hint a q a The magnitude and direction of the force is: 1.914kq magnitude: F syntax error. Check your...
-
What amount today is equivalent to $6,800 three years ago, if money earned 12% compounded quarterly over the past three years? $9,729.23 $9,553.51 $9,695.17 $4,769.38 $8,872.46
-
Indicate which one of the following biases/fallacies are of concern in this case. My last car repair cost me $200. This time the mechanic said that my car needs repairs that will cost over $1000....
-
Using the framework of the marketing mix, appraise the marketing tactics of Boo.com in the areas of Product, Pricing, Place, Promotion, Process, People and Physical Evidence.
-
Suppose the XYZ Company, which has an annual demand of 12,000 units per year, order cost of $ 25, and annual holding cost per unit of $ 0.50, decides to oper-ate with a planned shortage inventory...
-
The net operating income (EBIT) for Bear Investment Company (BIC) this year is $80,000. During the year, the company paid $20,000 interest on its debt and $25,000 dividends to its common...
-
Identify the criteria used to account for and disclose gain and loss contingencies.
-
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in exhibit 7. Commodity 62CF3 41DH2 o3MQ3 23FH6 10KT...
-
could you please conplete the questions 1-8 on the second page posted? Part 1: Insert the Trial Balance HERE Bisbee Mountain Company Trial Balance 11/30/17 Cr Dr 172,000 124,000 1,000 50,000 55,000...
-
Please find and explain the correct answer for Yellow highlighted area. Thank you. Hawkeye Corporation acquired 75 percent of Gopher Company's ownership on January 1, 20X8, for $96,000. At that ...
-
From this analysis, we can see than the actual number of unit produced was actually less than the forecasted, yet the actual revenue gain from were greater than the forecasted one. This situation...
-
Global Operations Management is supported by Strategic Supply Chain Management in many ways. Elucidate the following; List and briefly define/describe the Five (5) Components of Strategic Supply...
-
The Alpine House, Inc. is a large winter sports equipment broker. Below is an income statement for the company's ski department for a recent quarter. LA CASA ALPINA, INC. Income Statement - Ski...
-
Two investment portfolios are shown. Investment Portfolio 1 Portfolio 2 ROR Savings Account $1,425 $4,500 2.80% Government Bond $1,380 $3,600 1.55% Preferred Stock $3,400 $2,150 11.70% Common Stock...
-
The following information pertains to JAE Corporation at January 1, Year 1: Common stock, $8 par, 11,000 shares authorized, 2,200 shares issued and outstanding Paid-in capital in excess of par,...
-
Anyone know SAS software , I'm trying to solve my assignment, I'm getting error. Can anyone help? I will be grateful :( Wisconsin COVID-19 data by census tract boundary Data is updated at 2:00PM CDT...
-
D Which of the following is considered part of the Controlling activity of managerial accounting? O Choosing to purchase raw materials from one supplier versus another O Choosing the allocation base...
-
What problems might be created by assuming that the bottom 10 percent, or bottom 5 percent, of the company workforce contains ineffective performers? LO.1
-
Why should management be willing to rehabilitate employees through an employee assistance program when so many workers have been downsized in recent years? LO.1
-
Identify factors contributing to poor performance. LO.1
Study smarter with the SolutionInn App