Anthony Taverna invited Jose Elchico and Ted Baylon to be his partners on June 1, 2021...

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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.

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