Assume that Joshua, Gideon and Samuel decided to incorporate their JUDGES Partnership on October 1, 2020....
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Assume that Joshua, Gideon and Samuel decided to incorporate their JUDGES Partnership on October 1, 2020. The books have already been closed on this date, however, partners agree that there has to be adjustments on certain asset values. They have also decided to invite David and Solomon as incorporators. The statement of financial position of the partnership are as follows: Assets Cash Accounts Receivable Allowance for BD Merchandise Inventory Furnitures & Fixtures Accum Depreciation Total Assets Liabilities and Capital Liabilities Joshua, Capital Gideon, Capital Samuel, Capital P28,000 42,000 (5,000) 50,000 60,000 (5,000) P170,000 P70,000 46,000 34,000 20,000 Total Liabilities & Capital P170,000 Partners agreed that allowance for bad debts should be increased by P1,000; fair market value of merchandise inventory is P55,000 and accumulated depreciation rate is 10%. KINGS CORP has been authorized to issue 100,000 ordinary shares with par value of P100 each. The partners are issued the number of shares commensurate to their capital balances. David and Solomon will invest P50,000 each to the corporation. Required: Record the incorporation of the partnership Assume that Joshua, Gideon and Samuel decided to incorporate their JUDGES Partnership on October 1, 2020. The books have already been closed on this date, however, partners agree that there has to be adjustments on certain asset values. They have also decided to invite David and Solomon as incorporators. The statement of financial position of the partnership are as follows: Assets Cash Accounts Receivable Allowance for BD Merchandise Inventory Furnitures & Fixtures Accum Depreciation Total Assets Liabilities and Capital Liabilities Joshua, Capital Gideon, Capital Samuel, Capital P28,000 42,000 (5,000) 50,000 60,000 (5,000) P170,000 P70,000 46,000 34,000 20,000 Total Liabilities & Capital P170,000 Partners agreed that allowance for bad debts should be increased by P1,000; fair market value of merchandise inventory is P55,000 and accumulated depreciation rate is 10%. KINGS CORP has been authorized to issue 100,000 ordinary shares with par value of P100 each. The partners are issued the number of shares commensurate to their capital balances. David and Solomon will invest P50,000 each to the corporation. Required: Record the incorporation of the partnership
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Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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