Maria Dolores decided to form a partnership with Martin Campos. Maria Dolores contributed P200,000 cash and...

  

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Maria Dolores decided to form a partnership with Martin Campos. Maria Dolores contributed P200,000 cash and Martin Campos contributed the assets from the business he has operated for the past year. His ledger accounts appear below: Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Store Equipment Accumulated Depreciation P 7,500 30,000 4,500 90,000 50,000 7,500 The partners agreed that the non-cash assets of Martin Campos be revalued as follows: P35,000 Store Equipment Depreciation Value is Accounts Receivable is 80% collectible Merchandise Inventory Fair Market Value is P70,000 Instructions: Record the investment of the partners. Maria Dolores decided to form a partnership with Martin Campos. Maria Dolores contributed P200,000 cash and Martin Campos contributed the assets from the business he has operated for the past year. His ledger accounts appear below: Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Store Equipment Accumulated Depreciation P 7,500 30,000 4,500 90,000 50,000 7,500 The partners agreed that the non-cash assets of Martin Campos be revalued as follows: P35,000 Store Equipment Depreciation Value is Accounts Receivable is 80% collectible Merchandise Inventory Fair Market Value is P70,000 Instructions: Record the investment of the partners.

Answer rating: 100% (QA)

To record the investment of the partners in the partnership we will make the necessary journal entries First we need to revalue Martin Camposs noncash ... View the full answer