Test 11 Problems: Answer the requirements for each of the following unrelated problems: (75%) ( 30 items @ 2.5 points each) On January 1, 2020, Rafa and Roger are combining their separate businesses to forma partnership. Cash and non-cash assets are to be contributed. The non-cash assets to be contributed and the liabilities to be assumed are as follows: Rafa Roger Carrying Amount Fair Valur Carrying Amount Fair Value Accounts Receivable 500,000 525,000 400,000 390,000 Inventory 800,000 900,000 400,000 315,000 Property & Equipment 2,000,000 1,825,000 1,725,000 1,545,000 Accounts Payable 250,000 250,000 300,000 300,000 Capital 3,050,000 2225,000 ? Rafa and Roger are to investor withdraw cash to bring their respective capitals to P2,500,000 each after giving effect to the foregoing adjustments 1 Net adjustment to Rafa, Capital Indicate whether debitor credit 2 Net adjustment to Roger, Capital. Indicate whether debitor credit. 3 Adjusted capital of Rafa before the cash investment or (withdrawal). 4 Adjusted capital of Roger before the cash investment or withdrawal) 5 Cash investment/(withdrawal) on the part of Rafa. Indicate whether investment or (withdrawal). 6 Cash investment/(withdrawal) on the part of Roger. Indicate whether investment or (withdrawal). 7 Amount of cash to be shown/presented/reported on the partnership statement of financial position as of January 1, 2020. 8 Total partnership liabilities immediately after formation 9 Total partnership capital immediately after formation 10 Total partnership capital immediately after formation B On April 2. 2020, Tan and Go agreed to form a partnership. Tan will Invest cash and equipment while Go will invest cash and the following non-cash assets at their fair value amounts as shown below. Investment of Go Carrying Amount Fair Value Accounts Receivable, net 250,000 225,000 Inventories 100,000 150,000 Equipment, net 250,000 350,000 Accounts Payable 100,000 100,000 Capital 500,000 1 Assume Tan and Go will invest equal amounts of capital of P700,000. Tan will invest P150,000 cash and equipment with a fair market value of P550,000 while Go will invest enough cash and the above non-cash assets at their fair value amounts to bring his capital also to P700,000. Assume the accounts payable of Go would be assumed by the partnership 11 For how much will Tan be credited for his investment of 150,000 cash and equipment with fair value amount of P550,000? 12 Net adjustment to Go, Capital Indicate whether debit or credit 13 Adjusted capital of Go before the cash investment. 14 Cash investment of Go to bring his capital to the desired amount of P700,000 15 Total partnership liabilities immediately after formation 16 Total partnership capital immediately after formation 17 Total partnership assets immediately after formation Assume Tan and Go will invest P1,000,000 each. Tan will invest cash of P200,000 and equipment with fair market value of P800,000 while Go will invest enough cash and the above non-cash assets at their fair value amounts to bring his capital also to P1,000,000 Assume the accounts payable of Go would be assumed by the partnership 18 How much cash must Go invest to bring his capital to the desired amount of P1,000,000 19 How much is the total partnership capital? 20 How much is total partnership assets