Andoy and Bandol agreed to form a partnership on January 2, 2019 for the purpose of manufacturing and selling stainless kitchen wares. Both are master crafters and have their own tools and equipment, which they will invest in the business. Andoy and Bandol determine their tools and equipment to have fair values of Php180,000 and Php240,000 respectively. They further resolve to invest sufficient cash such that each partner will have a beginning capital balance of Php500,000. Required: Prepare journal entries to record the partners’ investment.

Andoy and Bandol agreed to form a partnership on January 2, 2019 for the purpose of manufacturing and selling stainless kitchen wares. Both are master crafters and have their own tools and equipment, which they will invest in the business. Andoy and Bandol determine their tools and equipment to have fair values of Php180,000 and Php240,000 respectively. They further resolve to invest sufficient cash such that each partner will have a beginning capital balance of Php500,000. Required: Prepare journal entries to record the partners’ investment.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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