Problem #1 A sole proprietor and an individual with no business form a Partnership. Mendoza operated a specialty shop that sold fishing equipment and accessories. Her post- closing trial balance on Dec 31, 2017 is as follows: Mendoza Post-Closing Trial Balance December 31, 2017. Debit Credit Cash 36,000 Accounts Receivable 150,000 Allowance for Uncollectible accounts 16,000 Inventory 440,000 Equipment 135,000 Accumulated Depreciation 75,000 Accounts Payable 30,000 Mendoza, Capital 640,000 761,000 761,000 Mendoza plans to enter into a partnership with trusted associate, Richards, effective Jan 1, 2018. Profits and losses will be shared equally. Mendoza is to transfer all assets and liabilities of her shop to the partnership after revaluation. They will name the partnership MenRich. Richard will invest cash equal to Mendoza's investment after revaluation. The agreed values are as follows: a. Accounts receivable (net) P140,000 b. Inventory is to be valued at P460,000 c. Equipment at net value of P124,000 Required: (20 points) 1. How much is the net capital of Mendoza after revaluation? (5 points) 2. How much cash will Richards invest in the partnership? (5 points) 3. Prepare the partnership's Statement of Financial Position as at the date of formation of the partnership. (10 points) Problem # 2 Two sole proprietors form a partnership (20 points) On August 1, Borja and Agus pooled their assets to form a partnership, with the firm to take over their business assets and assume liabilities. Partnership capital are to be based on net assets transferred after the following adjustments. Profits and losses are allocated equally. The inventory of Agus is to be increased by P4,000; an allowance for doubtful accounts of P1,000 and P1,500 are to be set up in the books of Borja and Agus, respectively; and accounts payable of P4,000 is to be recognized in Borja's books. The individual trial balances on August, before adjustments, follow: Borja Agus Assets P75,000 P113,000 Liabilities 5,000 34,500 Choose the answer below: a. Borja, P65,000; Agus, P81,000 b Borja, P65,000; Agus, P76,000