On July 1, 2020, Jen and King agreed to form a partnership from their respective proprietorship businesses and to share profits equally. Jen and King's balance sheet before the formation were: Jen King Cash P 6,000 P 15,000 Accounts receivable 36,000 21,000 Merchandise inventory 99,000 126,000 Prepaid rent 12,000 Store equipment 120,000 90,000 Accumulated Depreciation ( 45,000 ) ( 54,000 ) Building 375,000 Accumulated Depreciation ( 75,000 ) Land 180,000 TOTALS P696,000 P210,000 Accounts payable P 22,500 P 9,000 Mortgage payable 180,000 Capital 493,500 201,000 TOTALS P696,000 P210,000 The fair values of Jen's and King's assets were: Merchandise inventory P 81,000 P 9,000 Prepaid rent - - Store equipment 45,000 19,500 Building 750,000 - Land 300,000 - How much capital will be credited to Jen?

Answer rating: 100% (QA)

Answer To determine the capital credited to Jen upon the formation of the partnership we need to cal... View the full answer