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Chapter 1 Partnership Formation NAME: Date Instructor: Section: Score: 1. A and B agreed to form a partnership. A shall contribute $80,000 cash while B shall contribute P200,000 cash. However due to the expertise that A will be bringing to the partnership, the partners agreed that they should initially have an equal interest in the partnership capital. Requirement: Using the bonus method, provide the journal entry to record the initial investments of the partners. 2. A, B and C formed a partnership. Their contributions are as follows: A B C Cash 80,000 20,000 200,000 Equipment 160,000 Totals 80,000 180,000 200,000 Additional information: Although C has contributed the most cash to the partnership, he did not have the full amount of P200,000 available and was forced to borrow P80,000. . The equipment contributed by B has an unpaid mortgage of P40,000, the repayment of which, is assumed by the partnership. The partners agreed to equalize their interest. Cash settlements among the partners are to be made outside the partnership. Requirements. Which partner(s) shall receive cash payment from the other partner(s)? b. Provide the entry to record the contributions of the partners. 3. A and B agreed to form a partnership. The partnership agreement stipulates the following: Initial capital of P280,000, . A 60:40 interest in the equity of the partnership. A contributed P200,000 cash while B contributed P80,000 cash. GODBLESS! _Kaya mo to! Requirement: Which partner should provide additional investment (or withdraw part of his investment) in order to bring the partners' capital credits equal to their respective interests in the equity of the partnership