On June 30, Max and Chub formed a partnership called Magnus Opus Partnership. The partners agreed...

Transcribed Image Text:

On June 30, Max and Chub formed a partnership called "Magnus Opus Partnership". The partners agreed to invest equal amounts of capital. Max invested his proprietorship's assets and liabilities as follows: On June Chub cash in amount Accounts Receivable Allowance for Uncollectible Accounts Merchandise Inventory Prepaid Expenses Office Equipment Accumulated Depreciation Accounts Payable Questions Max's Book Book Value P 72,000 223,400 17,000 459,000 153,000 191,000 Fair Market Value P 72,000 1. How much is the adjusted asset of Max? 2. How much is the total asset of the partnership on June 30? 3. How much cash investment did Chub made? 4. How much is the total cash of the partnership on June 30? 5. How much is the total capital of the partnership on June 30? 6. How much is the share of Max in the net income of the partnership? 10,500 241,000 17,000 276,000 the market value of Max's partnership capital. Max, the managing partner, would earn two-thirds of partnership profits. Chub agreed to accept one-third of the profits. 7. How much is the share of Chub in the net income of the partnership? 8. How much is the new capital of Max after the closing of nominal accounts? During the remainder of the year, the partnership earned P450,000. The temporary withdrawals of Max and Chub were P352,000 and P230,000, respectively. 30, invested an 191.000 equal to current 9. How much is the new capital of Chub after the closing of nominal accounts? 10. How much is the adjusted capital of the partnership after the closing of nominal accounts? On June 30, Max and Chub formed a partnership called "Magnus Opus Partnership". The partners agreed to invest equal amounts of capital. Max invested his proprietorship's assets and liabilities as follows: On June Chub cash in amount Accounts Receivable Allowance for Uncollectible Accounts Merchandise Inventory Prepaid Expenses Office Equipment Accumulated Depreciation Accounts Payable Questions Max's Book Book Value P 72,000 223,400 17,000 459,000 153,000 191,000 Fair Market Value P 72,000 1. How much is the adjusted asset of Max? 2. How much is the total asset of the partnership on June 30? 3. How much cash investment did Chub made? 4. How much is the total cash of the partnership on June 30? 5. How much is the total capital of the partnership on June 30? 6. How much is the share of Max in the net income of the partnership? 10,500 241,000 17,000 276,000 the market value of Max's partnership capital. Max, the managing partner, would earn two-thirds of partnership profits. Chub agreed to accept one-third of the profits. 7. How much is the share of Chub in the net income of the partnership? 8. How much is the new capital of Max after the closing of nominal accounts? During the remainder of the year, the partnership earned P450,000. The temporary withdrawals of Max and Chub were P352,000 and P230,000, respectively. 30, invested an 191.000 equal to current 9. How much is the new capital of Chub after the closing of nominal accounts? 10. How much is the adjusted capital of the partnership after the closing of nominal accounts?

Answer rating: 100% (QA)

1 Adjusted Asset of Max Accounts Receivable P72000 Merchandise Inventory P241000 Prepaid Expenses P1... View the full answer