Joe, Efren and Rene who share earnings in a 5:2:3 ratio, have capital balances of P500,000,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Joe, Efren and Rene who share earnings in a 5:2:3 ratio, have capital balances of P500,000, P200,000 and P300,000, respectively. They decided to admit Milet as a new partner. It was agreed however, that the admission of the new partner should not involve any asset adjustment. If Milet is given a 20% interest in the firm by investing an amount equal to P300,000. Required: Compute for the amount of Joe, Efren, and Rene's capital after Milet's admission as partner in the partnership. Joe, Efren and Rene who share earnings in a 5:2:3 ratio, have capital balances of P500,000, P200,000 and P300,000, respectively. They decided to admit Milet as a new partner. It was agreed however, that the admission of the new partner should not involve any asset adjustment. If Milet is given a 20% interest in the firm by investing an amount equal to P300,000. Required: Compute for the amount of Joe, Efren, and Rene's capital after Milet's admission as partner in the partnership.
Expert Answer:
Answer rating: 100% (QA)
To compute for Joe Efren and Renes capital after Milets admission as a partner without any asset adjustment we first need to determine the total capit... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
Students also viewed these accounting questions
-
1. Discuss one of the missing core beliefs of Toyota JIT (Just-in-time) philosophy and any one of the three major elements of JIT not mentioned in the article? 2. Discuss the differences between the...
-
Section of LEV system in tableting department The second stage of the LEV TExt [testing] is a review of the technical performance this includes measuring. In the above diagram in supporting document...
-
Carlton, Weber, and Stansbury share profits equally and have capital balances of $120,000, $70,000, and $80,000, respectively, as of December 31, 2014. Effective January 1, 2015, Stansbury has...
-
Suppose that a product can be sold at split-off for $5,000 or processed further at a cost of $1,000 and then sold for $6,400. Should the product be processed further?
-
The gauge pressure in a helium gas cylinder is initially 32 atm. After many balloons have been blown up, the gauge pressure has decreased to 5 atm. What fraction of the original gas remains in the...
-
How can management accounting contribute to planning, decision making and control in e-business and e-commerce?
-
Consider the following three-player game in strategic form. Each player has two strategies: Player I has the strategies \(T\) and \(B\) (the top and bottom row), player II has the strategies \(l\)...
-
On January 1, 2012, Norma Smith and Grant Wood formed a computer sales and service enterprise in Soapsville, Arkansas, by investing $90,000 cash. The new company, Arkansas Sales and Service, has the...
-
Current Attempt in Progress 2 Concord Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its...
-
Can you make the journal entries for the transactions below: Dec. 1 - Sold merchandise to Argem Day Care Center for P20,000 and received a 3-month, 12% note. 2 - Purchased merchandise from Stephen...
-
Download monthly share price data covering the most recent 5- year period for five companies of your choice within the FTSE 100 index and perform the following tasks: 1. Calculate monthly simple...
-
Fit-for-Life Foods reports the following income statement accounts for the year ended December Gain on sale of equipment Office supplies expense Insurance expense Sales Office salaries expense Rent...
-
The following financial information was taken from the books of Zone Health Club, a small spa and fitness club: Account Balances as of Accounts receivable December 31, Year 2 $25,800 Accounts payable...
-
Write a 1 page formal professional persuasive letter about a business topic of your choosing. Below are some topics you may choose from, or you can come up with your own idea for a business-related...
-
Can you elaborate on the concept of ecological resilience, delineating the capacity of ecosystems to absorb disturbances while maintaining their structure, function, and biodiversity, and what...
-
What is the Stellar Corporation's cost of goods manufactured for the year? Current information for the Stellar Corporation follows: Beginning work in process inventory Ending work in process...
-
1. a) Do you expect any changes in mortgage-backed security pricing if the pass-through security was not fully amortised? b) What is the present value of a twelve million pool of ten-year mortgages...
-
Q:1 Take any product or service offered in Pakistan and apply all determinents of customer Perceived value ?
-
P's separate earnings are $100,000, and S's separate earnings are $40,000. P owns an 80 percent interest in S, and S owns a 10 percent interest in P. What is the controlling share of consolidated net...
-
Explain the terms preacquisition earnings and preacquisition dividends.
-
1. Which of the following items has the greatest GAAP authority under SAS 69? a. GASB implementation guides b. Consensus positions of GASBs Emerging Issues Task Force c. GASB statements and...
-
The following balances have been extracted from the books of Mitchell plc on 31 July 2002. From them draw up (i) a detailed trading and profit and loss account for internal use, for the year ending...
-
Bunker plc is a trading company; it does not carry out any manufacturing operations. The following information has been extracted from the books of account for the year to 31 March 2010: Additional...
-
Fresno Group plc have prepared their financial statements for the year ended 31 January 2004. However, the financial accountant of Fresno Group plc had difficulty in preparing the statements required...
Study smarter with the SolutionInn App