Anthony Taverna invited Jose Elchico and Ted Baylon to be his partners on June 1, 2021...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Anthony Taverna invited Jose Elchico and Ted Baylon to be his partners on June 1, 2021 to set up an advertising company. His business showed the following balances: Credit Cash Accounts Receivable Allowance for bad Debts Merchandise Inventory Furniture & Equipment Allowance for Depreciation Accounts Payable Taverna, Capital Totals Debit P 20,000 80,000 120,000 90,000 P 2,000 18,000 40,000 250,000 P310,000 P310,000 Taverna will invest only the non- cash assets as well as the liabilities of his sole- proprietor owned business for a 60% share in partners' equity, the other two partners contributing cash equally for the remaining interest. They agree to consider the following adjustments for Taverna's contribution: 1. The accounts receivable has a realizable value of P70,000. 2. Merchandise inventory should be decreased by 10%. 3. Furniture and equipment are only worth 75% of its cost. Direction: a) Compute for the adjusted capital of Taverna. Adjust and close his books. b) How much will be the cash investment of Jose and Ted? b) Give one investment entry to open the books of the partnership. Anthony Taverna invited Jose Elchico and Ted Baylon to be his partners on June 1, 2021 to set up an advertising company. His business showed the following balances: Credit Cash Accounts Receivable Allowance for bad Debts Merchandise Inventory Furniture & Equipment Allowance for Depreciation Accounts Payable Taverna, Capital Totals Debit P 20,000 80,000 120,000 90,000 P 2,000 18,000 40,000 250,000 P310,000 P310,000 Taverna will invest only the non- cash assets as well as the liabilities of his sole- proprietor owned business for a 60% share in partners' equity, the other two partners contributing cash equally for the remaining interest. They agree to consider the following adjustments for Taverna's contribution: 1. The accounts receivable has a realizable value of P70,000. 2. Merchandise inventory should be decreased by 10%. 3. Furniture and equipment are only worth 75% of its cost. Direction: a) Compute for the adjusted capital of Taverna. Adjust and close his books. b) How much will be the cash investment of Jose and Ted? b) Give one investment entry to open the books of the partnership.
Expert Answer:
Answer rating: 100% (QA)
a Entries to adjust and close the books of Taverna S no Particulars Debit Credit 1 Tavern... View the full answer
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
The equity accounts for Kalimantan Corp. showed the following balances on December 31, 2013: Preferred shares, $2 non-cumulative, Unlimited shares authorized...
-
The equity accounts for Kalimantan Corp. showed the following balances on December 31, 2019: Preferred shares, $2 non-cumulative, unlimited shares authorized...
-
The accounting records of Robin Co. showed the following balances at January 1, Year 2: Cash ............................................................................................. $30,000...
-
Fill in the missing amounts for the following bank reconciliation: Practice Exercise3 Bank Reconciliation March 31,20 Bank Statement Balance $3,764.00 Add: Deposit in transit $4,031.00 Deduct:...
-
An electrical coil is used to heat 20.0 kg of water in a closed well-insulated vessel. The water is initially at 25C and 1 atm. The coil delivers a steady 2.50 kW of power to the vessel and its...
-
1. Is segmenting customers as Explorers, Admirals, and the like a useful marketing tool? Why or why not? 2. Which segments of the cruise market are most likely to be influenced by social media? Why?
-
Should governments be the principal sources of assistance for economic development and poverty reduction, or should philanthropy play the leading role? What are the advantages and disadvantages of...
-
Possible causes for price and efficiency variances You are a student preparing for a job interview with a Fortune 109 consumer products manufacturer. You are applying for a job in the Finance...
-
Question: Hallaway Inc. uses a job-order costing system with machine hours as the allocation base for overhead. The company uses normal costing to develop their overhead allocation rate. The...
-
In the model displayed in the Exhibit above, which predictor variables are most likely to be chosen by a Stepwise regression approach for best model fit. You may use JMP Stepwise Regression operation...
-
Kafreshness, Inc., expects to sell 20,000 pool cues for P24.00 each. Direct materials costs are P4.00, direct manufacturing labor is P8.00, and manufacturing overhead is P1.60 per pool cue. The fo...
-
Explore the concept of the "antihero" in contemporary fiction. How does this character archetype differ from traditional heroes, and what does its popularity suggest about changing societal attitudes...
-
Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $186 per unit during the current year. Its income statement is...
-
Organisations use safe work practices to ensure the health and safety of workers using essential functions and features of equipment used to clean kitchen premises and equipment. List at least three...
-
Table where investors invest $5M for 5M shares Amount Invested by Series A VC PPS (price per share) Number Shares $5,000,000 $1.00 Security Common-Founders 5,000,000 Pre Series A # Shares 7,750,000 %...
-
An aqueous solution containing 1,2 mol/litre of A is fed at 150 litre/hr into an isothermal reactor, where it undergoes a first-order reaction. If the reaction rate constant is 8,5/hr, determine the...
-
On October 31, 2021, Sunland Company had a cash balance per books of $8,967. The bank statement on that date showed a balance of $10,168. A comparison of the statement with the Cash account revealed...
-
(a) Use integration by parts to show that (b) If f and g are inverse functions and f' is continuous, prove that (c) In the case where f and t are positive functions and b > a > 0, draw a diagram to...
-
Jimenez Enterprises issued 9%, 8-year, $2,600,000 par value bonds that pay interest semiannually on October 1 and April 1. The bonds are dated April 1, 2014, and are issued on that date. The discount...
-
Quiver Corporation and Swaze Corporation, two corporations of roughly the same size, are both involved in the manufacture of umbrellas. Each company depreciates its plant assets using the...
-
Zimmerman Company of Shawnee, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2014, the companys Cash account per its general ledger showed a balance of...
-
The standard costs for a manufacturing business are \($12\) per unit for direct materials, \($8\) per unit for direct labour, and \($5\) per unit for manufacturing overhead. The sales projection is...
-
What is Munchs expected profit for April? a. $192,500 b. $56,000 c. $66,000 d. $59,000 Munch Enterprises makes a small toy car that is voice activated. Projected sales for the next four months are...
-
Bobby Jones Inc. is planning sales of 55,000 units for the next three months. The company has a beginning inventory of 10,000 units and would like to have an ending inventory of 15,000 at the end of...
Study smarter with the SolutionInn App