Pedro admits Takyo as a partner in business. Accounts in the ledger for Pedro on November 30,
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Question:
- Pedro admits Takyo as a partner in business. Accounts in the ledger for Pedro on November 30, 2016, just before the admission of Takyo, show the following balances:
- CashP 26,000
- Accounts payable 62,000
- Accounts receivable 120,000
- Pedro, capital 264,000
- Merchandise inventory 180,000
- It is agreed that for purposes of establishing Pedro's interest the following adjustments should be made:
- 1. An allowance for doubtful accounts of 2% of accounts receivable is to be established.
- 2. The merchandise inventory is to be valued at P202,000.
- 3. Prepaid expenses of P6,500 and accrued liabilities of P4,000 are to be established.
- Takyo is to invest sufficient funds in order to receive a 1/3 interest in the partnership. How much must Takyo contribute?
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
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