The balance sheet of Mateo Roa on Oct. 1, 2021, before accepting Martin Penaco as his...
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The balance sheet of Mateo Roa on Oct. 1, 2021, before accepting Martin Penaco as his partner is shown below: Cash Notes Receivable Accounts Receivable Mateo Roa Balance Sheet October 1, 2021 Assets Less: Allowance for Uncollectible Accts. Merchandise Inventory Furniture and Fixtures Less: Accumulated Depreciation Total Assets Notes Payable Accounts Payable Mateo Roa, Capital Total Liabilities and Owner's Equity P 240,000 10,000 Liabilities and Owner's Equity P 60,000 6,000 1. The merchandise is to be valued at P74,000. 2. The accounts receivable is estimated to be 95% collectible. P 60,000 30,000 Books of the Partnership: 1. Record the investment of Mateo Roa. 2. Record the investment of Martin Penaco. 230,000 80,000 54,000 P 454.000 Martin Penaco offered to invest cash to give him a capital credit equal to one-half of Mateo Roa's capital after giving effect to the adjustments below. Roa accepted the offer. P 40,000 100,000 314,000 P454.000 3. Interest accrued on the notes receivable will be recognized: P10,000, 12% dated July 1, 2021 and P20,000, 12% dated August 1, 2021. 4. Interest on notes payable to be accrued at 14% annually from Apr. 1.2021 5. The furniture and fixtures are to be valued at P46,000. 6. Office supplies on hand that have been charged to expense in the past amounted to P4,000. These will be used by the partnership. New books for the Partnership. The following procedures may be used in recording the formation of the partnership: The balance sheet of Mateo Roa on Oct. 1, 2021, before accepting Martin Penaco as his partner is shown below: Cash Notes Receivable Accounts Receivable Mateo Roa Balance Sheet October 1, 2021 Assets Less: Allowance for Uncollectible Accts. Merchandise Inventory Furniture and Fixtures Less: Accumulated Depreciation Total Assets Notes Payable Accounts Payable Mateo Roa, Capital Total Liabilities and Owner's Equity P 240,000 10,000 Liabilities and Owner's Equity P 60,000 6,000 1. The merchandise is to be valued at P74,000. 2. The accounts receivable is estimated to be 95% collectible. P 60,000 30,000 Books of the Partnership: 1. Record the investment of Mateo Roa. 2. Record the investment of Martin Penaco. 230,000 80,000 54,000 P 454.000 Martin Penaco offered to invest cash to give him a capital credit equal to one-half of Mateo Roa's capital after giving effect to the adjustments below. Roa accepted the offer. P 40,000 100,000 314,000 P454.000 3. Interest accrued on the notes receivable will be recognized: P10,000, 12% dated July 1, 2021 and P20,000, 12% dated August 1, 2021. 4. Interest on notes payable to be accrued at 14% annually from Apr. 1.2021 5. The furniture and fixtures are to be valued at P46,000. 6. Office supplies on hand that have been charged to expense in the past amounted to P4,000. These will be used by the partnership. New books for the Partnership. The following procedures may be used in recording the formation of the partnership:
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1 Record the investment of Mateo Roa Mateo Roas investment should be recorded in the books of the partnership using the following journal entry Debit ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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