with brief explanation

Problem 1: Give the entry to record the investment of Anton into the partnership under each of following independent assumptions: a. Cash of P400,000 b. Accounts receivable of P500,000 with an allowance for uncollectible accounts of P50,000 C. Inventories that cost P300,000 using the moving average method accepted by the partnership at its FIFO value of 80% of average cost. d. Equipment that cost P900,000 with a book value of P300,000 after four years of use without salvage value. The equipment should have been depreciated over a 10-year useful life. Problem 2: A and B have decided to form a partnership. A invests the assets presented below and also transfers his liabilities to the new firm. Ledger Balances Agreed Valuation Cash P450,000 P450,000 Accounts Receivable 180,000 180,000 Allowance for Uncollectible 15,000 10,000 Accounts Merchandise Inventory 300,000 270,000 Equipment 180,000 125,000 Accumulated Depreciation 30,000 Accounts Payable 105,000 105,000 Notes Payable 90,000 90,000 B agrees to invest cash for a one-third interest in the firm. Required: 1. Prepare the entries to record the investments of A and B in the partnership's new set of books. 2. Prepare the entries to adjust and close the balances of accounts in the books of A. Problem 3: Sole proprietors A and B established a partnership on December 31, 2020 sharing profits and losses in the ratio of 60% and 40%. They agreed that each would make the following contributions: A B Cash P50,000 P750,000 Land 375,000 Building 1,200,000 Furniture and fixture 675,000 Accounts payable of A totaling P250,000 are to be assumed by the partnership. Required: Prepare the entries on December 31, 2020 to record the investments in the partnership by A and B under each of the following independent assumptions: 1. Each partner is credited for the full amount of the net assets invested. 2. Each partner initially should have an equal interest in the partnership capital 3. Each partner receive capital credit proportionate to his profit and loss ratio. Problem 4 (Books of one of the sole proprietors to be used by the partnership): On October 1, 2020, A and B decided to pool their assets and form a partnership. The firm is to take over business assets and assume business liabilities; equities are to be based on net assets transferred after the following adjustments: a. B's inventory is to be valued at P350,000 b. An allowance for uncollectible accounts of P9,000 and P7,500, respectively should be set up c. Accrued expenses of P21,000 are to be recognized on A's books 1. B is to contribute sufficient cash to give him a 60% interest in the new firm Statements of financial position for A and B on October 1 before adjustments are presented below: A B Cash 187,500 P112,500 Accounts Receivable 450,000 375,000 Merchandise Inventory 400,000 300,000 Equipment 250,000 300,000 Accumulated Depreciation (112,500) (37,500) Total Assets P1,175,000 P1,050,000 Accounts Payable P345,000 P250,000 Canital 830 non I 80n nnn I =4G 4G 1 1 1 1 . 1 1:35 0 . . . 4 54 HW - 02.docx 3. Each partner receive capital credit proportionate to his profit and loss ratio. Problem 4 (Books of one of the sole proprietors to be used by the partnership): On October 1, 2020, A and B decided to pool their assets and form a partnership. The firm is to take over business assets and assume business liabilities; equities are to be based on net assets transferred after the following adjustments: a. B's inventory is to be valued at P350,000 b. An allowance for uncollectible accounts of P9,000 and P7,500, respectively should be set up c. Accrued expenses of P21,000 are to be recognized on A's books d. B is to contribute sufficient cash to give him a 60% interest in the new firm Statements of financial position for A and B on October 1 before adjustments are presented below: B Cash 187,500 P112,500 Accounts Receivable 450,000 375,000 Merchandise Inventory +00,000 300,000 Equipment 250,000 300,000 Accumulated Depreciation (112,500) (37,500) Total Assets 1,175,000 P1,050,000 Accounts Payable P345,000 P250,000 Capital 830,000 800,000 Total liabilities and Capital P1,175,000 P1,050,000 Required: 1. Give the entries to adjust and close the books of A 2. Give the entries required on the books of B upon formation of the partnership 3. Prepare a statement of financial position for the new partnership of A and B Problem 5 (New books are to be opened): On May 1, 2020, the business accounts of A and B appear below: A B Cash P55,000 P111,770 Accounts Receivable 1,172,680 2,839,450 Merchandise Inventory 600,175 1,300,510 Land 3,015,000 Buildings 2,141,335 Furniture and Fixtures 251,725 173,945 Other Assets 10,000 18,000 Accounts Payable 894,700 1,218,250 Notes Payable 1,000,000 1,725,000 A, Capital 3,209,880 B, Capital 3,641,760 A and B agreed to form a partnership contributing their respective assets and liabilities subject to the following adjustments: Accounts receivable of P50,000 in A's books and P75,000 in B's books are uncollectible Inventories of P27,000 and P35,000 are worthless in A's and B's respective books 2 / 3 . Other assets of P10,000 and P18,000 in A's and B's books are to be written off Required: 1. Prepare journal entries to adjust the books of both partners 2. Prepare journal entries to close the books of both partners 3. Prepare journal entries on the new books of the partnership 4. Prepare a statement of financial position for the new partnership E