On January 02, 2019, the business assets and liabilities of Gail Anne & Precious were as follows:Gail AnnePrecious CashP28,000P62,000 Receivables 200,000 600,000 Inventories 120,000 200,000 PPE 650,000 535,000 Other Assets 2,000 3,000 Accounts Payable 180,000 250,000 Notes Payable 200,000 350,000 Gail Anne and Precious agreed to form a partnership by contributing their net assets subject to the following adjustments: ➢ Receivables of P20,000 in Gail Anne’s books and P40,000 in Precious’ books are uncollectible ➢ Inventories of P6,000 and P7,000 in the respective books of Gail Anne and Precious are worthless ➢ Other assets in both books are to be written off ➢ Accrued interest on notes payable equal to 10% is to be established. The note payable of Gail Anne was dated August 01, 2018 while that of Precious, was dated April 01, 2018. The balances of selected accounts after the formation are: Assets ___________________Liabilities ___________________ Capital ___________________
On January 02, 2019, the business assets and liabilities of Gail Anne & Precious were as follows:Gail AnnePrecious CashP28,000P62,000 Receivables 200,000 600,000 Inventories 120,000 200,000 PPE 650,000 535,000 Other Assets 2,000 3,000 Accounts Payable 180,000 250,000 Notes Payable 200,000 350,000 Gail Anne and Precious agreed to form a partnership by contributing their net assets subject to the following adjustments: ➢ Receivables of P20,000 in Gail Anne’s books and P40,000 in Precious’ books are uncollectible ➢ Inventories of P6,000 and P7,000 in the respective books of Gail Anne and Precious are worthless ➢ Other assets in both books are to be written off ➢ Accrued interest on notes payable equal to 10% is to be established. The note payable of Gail Anne was dated August 01, 2018 while that of Precious, was dated April 01, 2018. The balances of selected accounts after the formation are: Assets ___________________Liabilities ___________________ Capital ___________________
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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Question
On January 02, 2019, the business assets and liabilities of Gail Anne & Precious were as follows:
Gail AnnePrecious
CashP28,000P62,000
Receivables 200,000 600,000
Inventories 120,000 200,000
PPE 650,000 535,000
Other Assets 2,000 3,000
Accounts Payable 180,000 250,000
Notes Payable 200,000 350,000
Gail Anne and Precious agreed to form a partnership by contributing their net assets subject to the following adjustments:
➢ Receivables of P20,000 in Gail Anne’s books and P40,000 in Precious’ books are uncollectible
➢ Inventories of P6,000 and P7,000 in the respective books of Gail Anne and Precious are worthless
➢ Other assets in both books are to be written off
➢ Accrued interest on notes payable equal to 10% is to be established. The note payable of Gail Anne was dated August 01, 2018 while that of Precious, was dated April 01, 2018.
The balances of selected accounts after the formation are:
Assets ___________________Liabilities ___________________ Capital ___________________
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