Christine Udarbe and Vincent Trongco have been sole proprietors of separate animal relocation businesses for several...
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Christine Udarbe and Vincent Trongco have been sole proprietors of separate animal relocation businesses for several years. On January 1, 2020, they form a partnership called C&V Animal Kingdom. The following balance sheets provided for each business serve as the basis for the partnership: Assets Cash Accounts receivable Less allow. for DA Office equipment Less: accum. dep. Vehicles Less: accum. dep. Total assets Christine Udarbe Statement of Financial Position December 31, 2020 P38,800 8,800 418,000 20,000 Equipment Less accum. depr. Vehicles 538,000 100,000 Assets Cash Accounts receivable P45,400 Less allow. for DA 7,400 Liabilities P46,000 Accounts payable Notes payable 30,000 Total liabilities Vincent Trongco Statement of Financial Position December 31, 2020 327,000 46,000 350,000 Owner's Equity 398,000 C. Udarbe, capital P485,200 438,000 Total liabilities and P912,000 owner's equity Liabilities P50,900 Accounts payable Notes payable 38,000 Total liabilities P136,800 290,000 P426,800 91 P912,000 P120,000 146,000 P266,000 Owner's Equity 281,000 V. Trongco, capital P479,900 PARTNERSHIP AND CORPORATION ACCOUNTING Less accum. depr. 64,000 Office equipment 130,000 Less accum. depr. 40,000 Total assets 286,000 90,000 Total liabilities and P745,900 owner's equity P745,900 Udarbe and Trongco agree that the information provided on the balance sheets represents market values, except for the assets listed below for which appraisals of current market values were obtained. Fair market values Udarbe Trongco Office equipment P398,000 P82,000 Vehicles 420,000 278,000 Requirement: Prepare the opening journal entries for the formation of C&V Animal Kingdom. Na Ca 0 p Christine Udarbe and Vincent Trongco have been sole proprietors of separate animal relocation businesses for several years. On January 1, 2020, they form a partnership called C&V Animal Kingdom. The following balance sheets provided for each business serve as the basis for the partnership: Assets Cash Accounts receivable Less allow. for DA Office equipment Less: accum. dep. Vehicles Less: accum. dep. Total assets Christine Udarbe Statement of Financial Position December 31, 2020 P38,800 8,800 418,000 20,000 Equipment Less accum. depr. Vehicles 538,000 100,000 Assets Cash Accounts receivable P45,400 Less allow. for DA 7,400 Liabilities P46,000 Accounts payable Notes payable 30,000 Total liabilities Vincent Trongco Statement of Financial Position December 31, 2020 327,000 46,000 350,000 Owner's Equity 398,000 C. Udarbe, capital P485,200 438,000 Total liabilities and P912,000 owner's equity Liabilities P50,900 Accounts payable Notes payable 38,000 Total liabilities P136,800 290,000 P426,800 91 P912,000 P120,000 146,000 P266,000 Owner's Equity 281,000 V. Trongco, capital P479,900 PARTNERSHIP AND CORPORATION ACCOUNTING Less accum. depr. 64,000 Office equipment 130,000 Less accum. depr. 40,000 Total assets 286,000 90,000 Total liabilities and P745,900 owner's equity P745,900 Udarbe and Trongco agree that the information provided on the balance sheets represents market values, except for the assets listed below for which appraisals of current market values were obtained. Fair market values Udarbe Trongco Office equipment P398,000 P82,000 Vehicles 420,000 278,000 Requirement: Prepare the opening journal entries for the formation of C&V Animal Kingdom. Na Ca 0 p
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To prepare the opening journal entries for the formation of CV Animal Kingdom based on the information provided we must account for each asset and lia... View the full answer
Related Book For
Income Tax Fundamentals 2019
ISBN: 9781337703062
37th Edition
Authors: Gerald E. Whittenburg, Steven Gill
Posted Date:
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