Partnership Partners hip – Basic Conside rations and Formation Fo rmation
CHAPTER 1 MULTIPLE CHOICE 1-1: a
1-2: b 1-2: c
Jose's capital should be credited for the market value of the computer contributed by him. 60,000 00 . (40,000 + 80,000) ÷ !" # $80,000 % $!" # 60,0
1-3: a
&ash and ort*a*e payable
$00,000 "00,000 ( 0,000 )
Net assets (Julio, capital) capital)
P350,000
otal &apital ("00,000!-0) erla's interest
00,000 //////40
erla's capital ess1on2cash asset contributed at market value and 30,000 uildin* 50,000 ort*a*e ayable ( 40,000)
00,000
Cash contribution
P 80,000
1-4: b
1-5: d
/$0,000
2 6ero, because under the bonus method, a transfer of capital is only re7uired.
1-6: b
Reyes
Santos
00,000 9 9
&ash nventory uildin* :7uipment ort*a*e payable
////////
"00,000 $0,000 400,000 $0,000 ( $00,000 )
Net asset (capital) (capital)
P350,000
P750,000
AA
BB
CC
,000 P55,000
1-7: c
&ash roperty at arket ;alue ort*a*e payable :7uipment at arket ;alue
0,000
///////
80,000 ( ",000) ///////
Capital
P 50,000
P 45,000
2 Chapter 1
1-8: a PP
RR
SS
&ash &omputer at arket ;alue
0,000 //,000
80,000 ///////
,000 //-0,000
Capital
P 75,000
P 80,000
P 85,000
Maria
Nora
1-9: c &ash erchandise inventory &omputer e7uipment iability
"0,000
otal contribution
"0,000
00,000
50,000 $-0,000 ( -0,000) //////// $50,000
otal a*reed capital ("0,000!40) 1ora's interest
3,000 //////-0
1ora's a*reed capital ess investment
"4,000 $50,000
Cash to be invested
P55,000
1-10: d Roy
Sam
Tim
&ash =ffice :7uipment 1ote payable
$40,000 9 ////////
9 0,000 /( -0,000)
9 9 //////
1et asset invested
$40,000
$-0,000
!"reed capitals, e#uall$ (P300,000%3) &
P00,000
1-11: a Lara
Mitra
&ash &omputer e7uipment 1ote payable
$"0,000 9 ////////
00,000 0,000 /( $0,000)
1et asset invested
$"0,000
40,000
'oodill (P40,000 * P30,000) &
P0,000
1-12: a Perez &ash =ffice :7uipment erchandise
0,000 "0,000 9 ///////
Reyes 30,000 9 $$0,000 $00,000 ( 0,000)
9
Net asset invested Partnership – Basic Considerations and Formation
P 80,000
P30,000
+onus ethodotal capital (net asset invested)
"$0,000
'oodill ethod 1et assets invested >dd ?ood@ill ("0,000280,000)
"$0,000 /$0,000
1et capital
4-0,000
1-13: b
Ae7uired capital of each partner ("00,000!) &ontributed capital of AuiB otal assets $0,000 ess iabilities //$,000
$0,000
Cash to be contributed b$ .ui/
P 60,000
//50,000
1-14: d
otal assets &ash achinery uildin* ess iabilities (ort*a*e payable)
30,000 3,000 /,000
"30,000 //50,000
1et assets (e7ual to
80,000 ////30
otal partnership capital
400,000
Ae7uired capital of &ruB (400,000 E "0) ess >ssets already contributed &ash "0,000 achinery and e7uipment ,000
$0,000
Cash to be invested b$ Cru/
P 55,000
//-,000
1-15: d
>dFusted assets of & orFa &ash ,00 >ccounts Aeceivable ($0,000200) 5,00 erchandise inventory ($,0002",000) $,000 sset contributed by C. >rce &ash 0,000 erchandise //$0,000
//"0,000
otal assets o1 the partnership
P 74,000
44,000
4 Chapter 1
1-16: a
&ash to be invested by endeB >dFusted capital of opeB (!") GnadFusted capital >dFustments repaid e%penses >ccrued e%penses >llo@ance for bad debts ( E $00,000)
$8,400 $3,00 ( ,000) /( ,000)
>dFusted capital
$-,500
otal partnership capital ($-,500!!") ultiply by endeB's interest
48,80 H
endeB's capital ess erchandise contributed
8,50 //0,000
Cash to be invested b$ ende/
P 3,250
otal &apital >dFusted capital of opeB &ontributed capital of endeB
$-,500 //8,50
otal capital
P48,850
1-17: d
oran, capital (40) &ash
$,000 /$00,000
otal partnership capital ultiply by 1akar's D share percenta*e Ae7uired capital of credit of 1akar &ontributed capital of 1akar erchandise inventory and uildin* otal assets ess iabilities Ae7uired cash investment by 1akar
$$,000 //////40 83,00 //////-0 $3,00
4,000 $,000 //-,000 $,000 //"0,000
5,000 33,00
1-18: c
?arcia's adFusted capital (see schedule $) Civide by ?arcia's D share percenta*e
40,00 //////40
otal partnership capital
$0$,0 //////-0
-0,30
//4",00
!dditional cash to be invested b$ lores
P 7,50
Partnership – Basic Considerations and Formation
chedule ?arcia, capital GnadFusted balance >dFustments >ccumulated depreciation >llo@ance for doubtful account
45,00 ( 4,00) ( 4,00)
>dFusted balance
40,00
chedule dFustments >ccumulated depreciation >llo@ance for doubtful accounts
3,000 ( $,00) ( $,000)
>dFusted balance
4",00
1-19: d
Ortiz GnadFusted capital balances >dFustments >llo@ance for bad debts nventories >ccrued e%penses >dFusted capital balances
Ponce
Total
( -0) ( 40) $"",000 $08,000 4$,000 ( ,300) ",000 /( ,400) $"0,500
( $,800) ,000 ( $,-00) $0-,000
( 4,00) ,000 ( 4,000) "3,00
otal capital before the formation of the ne@ partnership (see above) "3,00 Civide by the total percenta*e share of =rtiB and once (0 + "0) //////80 otal capital of the partnership before the admission of Ao%as ultiply by Ao%as' interest
5-,83 //////0
Cash to be invested b$ .oas
P 52,375
1-20: d
erchandise to be invested by ?omeB otal partnership capital ($80,000!-0)
"00,000
?omeB's capital ("00,000 E 40) ess &ash investment
$0,000 //"0,000
erchandise to be invested b$ 'oe/
P 20,000
&ash to be invested by Jocson >dFusted capital of Jocson otal assets (at a*reed valuations) ess >ccounts payable
$80,000 //48,000
$",000
Ae7uired capital of Jocson
/$80,000
Cash to be invested b$ Jocson
P 48,000
6 Chapter 1
1-21: b
GnadFusted :ll, capital (3,000 9 ,000) >llo@ance for doubtful accounts >ccounts payable
30,000 ( $,000) ( 4,000)
!dusted ll, capital
P 65,000
otal partnership capital ($$",-40!$!") ess Cavid's capital
"40,50 /$$",-40
&orteB's capital after adFustments >dFustments made >llo@ance for doubtful account ( E 5-,000) erchandise inventory repaid e%penses >ccrued e%penses
3,80
Corte/9s capital be1ore adustents
P,00
1-22: c
$,50 ( $-,000) ( ,00) ///",00
1-23: a
otal assets at fair value iabilities Capital balance o1 lor
4,-,000 ($,$,000) P3,500,000
otal capital of the partnership (",00,000 ÷ 30) :den a*reed profit D loss ratio :den a*reed capital :den contributed capital at fair value !llocated cash to be invested b$ den
,000,000 "0 $,00,000 8$,000 P 688,000
1-24: c
1-25: c
__Rey __Sam_ __Tim __Total_ &ontributed capital (assets2liabilities)43$,000 5$,000 $5,000 53,000 >*reed capital (profit and loss ratio) "8,800 "8,800 $5$,400 53,000 Capital trans1er (+onus) P 88,00 P(2,800) P 3,600 * 1-26: d
otal a*reed capital (50,000 I 40) &ontributed capital of &andy ($-,000+"-,0002$,000) otal a*reed capital (50,000 I 40) &andy, a*reed capital interest >*reed capital of &andy &ontributed capital of &andy :ithdraal
,000 $0,000 ,000 -0 $",000 $0,000 P 5,000
Partnership – Basic Considerations and Formation 1-27: a
otal a*reed capital ($0,000 I 30) 1oras interest >*reed capital of 1ora &ash invested Cash to be invested b$ Nora
"00,000 "0 50,000 4,000 P 48,000
&ontributed capital of ay ($54,000 2 -,000) >*reed capital of ay ("00,000 % 30) Cash to be invested b$ a$
$"8,000 $0,000 P 7,000
1-28: a
1-29: c
&ontributed capital >*reed capital Capital invested
/ _Alex_ $00,000 5,000 P( 8,000)
_Carlos_ 84,000 5,000 P 8,000
__Total__ $84,000 $84,000 *
8 Chapter 1
SOLUTIONS TO PROLEMS P!"b#$% 1 & 1 1'
a' +oo;s o1 Pedro Castro ill be retained b$ the partnership
To adjust te assets and lia!ilities o" Pedro Castro# $. edro &astro, &apital............................................................ erchandise nventory.....................................................
-00
. edro &astro, &apital............................................................ >llo@ance for ad Cebts.................................................
00
". >ccrued nterest Aeceivable................................................. edro &astro, &apital........................................................
"
Com$utation% $,000 % - % "!$ # ,000 % - % !$ #
-00
00
$ /0
otal................................" 4. edro &astro, &apital............................................................ >ccrued nterest ayable.................................................. &P'())) x *+ x ,-./ 0 P.))1
$00
. edro &astro, &apital............................................................ >ccumulated Cepreciation 9
800
-. =ffice Kupplies..................................................................... edro &astro, &apital........................................................
400
$00
800
400
To record te in2estment o" 3ose Buna4# &ash. ........................................................................................... $,0-3.0 Jose una*, &apital.............................................................. Com$utation% P$d!" Ca()!"* Ca+,)a# &.1 -00 "$,400 &/1 00 " &51 $00 400 &,1 &'1 &*1 ///800
$,300
"$,8"
$,0-3.0
"0,$" Jose una*, &apital $! % "0,$" # $,0-3.0 Partnership – Basic Considerations and Formation
b'
! ne set o1 boo;s ill be used ""( ". P$d!" Ca()!"
To adjust te assets and lia!ilities# Kee Ae7uirement (a). To close te !oo6s# 1otes ayable............... ............................................................... >ccounts ayable........................................................................ >ccrued nterest ayable............................................................. >llo@ance for ad Cebts............................................................ >ccumulated Cepreciation 9 ccounts Aeceivable............................................................. >ccrued nterest Aeceivable................................................. erchandise nventory......................................................... =ffice Kupplies.....................................................................
4,000 $0,000 $00 $,00 $,400 "0,$" -,000 ",000 4,000 3,400 400 -,000
N$/ Pa!)$!(,+ ""(
To record te in2estment o" Pedro Castro# &ash .......................................................................................... 1otes Aeceivable................. ........................................................ >ccounts Aeceivable................................................................... >ccrued nterest Aeceivable........................................................ erchandise nventory................................................................ =ffice Kupplies............................................................................ ccounts ayable.................................................................. >ccrued nterest ayable...................................................... >llo@ance for ad Cebts...................................................... >ccumulated Cepreciation 9
-,000 ",000 4,000 " 3,400 400 -,000 4,000 $0,000 $00 $,00 $,400 "0,$"
&ash. ........................................................................................... $,0-3.0 Jose una*, &apital..............................................................
$,0-3.0
10 Chapter 1
2'
Ca()!" ad a Pa!)$!(,+ a#ac$ S$$) Oc)"b$! 1* 2008
A s s e t s &ash.......................................................................................................... 1otes receivable................ ......................................................................... >ccounts receivable................................................................................... 4,000 ess >llo@ance for bad debts..................................................................... ///$,00 >ccrued interest receivable........................................................................ erchandise inventory............................................................................... =ffice supplies .......................................................................................... ccumulated depreciation.................................................................. ///$,400 otal >ssets........................................................................................
$,0-3.0 ",000.00 ,800.00 ".00 3,400.00 400.00 //4,-00.00 5,"0.0
Lia!ilities and Ca$ital 1otes payable .......................................................................................... >ccounts payable....................................................................................... >ccrued interest payable............................................................................ edro &astro, &apital.................................................................................. Jose una*, &apital....................................................................................
4,000.00 $0,000.00 $00.00 "0,$".00 /$,0-3.0
otal iabilities and &apital...............................................................
5,"0.0
P!"b#$% 1 & 2
Contri!uted Ca$itals% Jose
&apital before adFustment..................................................... 8,000 1otes ayable................ ....................................................... -,000 Gndervaluation of inventory................................................. $",000 Gnderdepreciation................................................................. ( ,000) edro &ash...................................................................................... ablo &ash...................................................................................... $$,000 arketable securities............................................................ /3,00 otal contributed capital............................................................................. A4reed Ca$itals% +onus ethodJose ("$,00 % 0)................................................................ $$,30
$",000 8,000 ///-8,00 "$,00
edro ("$,00 % )............................................................. 3,83 ablo ("$,00 % ).............................................................. //3,83 otal. ........................................................................................... "$,00
Partnership – Basic Considerations and Formation
'oodill ethod . o have a *ood@ill, the only possible base is the capital of ablo. he computation is
Contri!uted Ca$ital Jose edro ablo
$",000 8,000 //-8,00
otal
"$,00
A4reed Ca$ital $"3,000 (0) -8,00 () //-8,00 ()
7ood8ill ,000 40,00 /////9
34,000
4,00
otal a*reed capital (-8,00 ÷ ) # 34,000 "($* P$d!" ad Pab#" Pa!)$!(,+ a#ac$ S$$) $ 30* 2008
Bonus Metod >ssets &ash >ccounts receivable (net) arketable securities nventory :7uipment (net) ?ood@ill
7ood8ill Metod
45,000 48,000 3,00 8,000 4,000 //////9
45,000 48,000 3,00 8,000 4,000 //4,00
84,00
"3,000
>ccounts payable Jose, capital (0) edro, capital () ablo, capital ()
",000 $$,30 3,83 //3,83
",000 $"3,000 -8,00 //-8,00
otal
84,00
"3,000
otal iabilities and &apital
P!"b#$% 1 & 3 1'
Boo6s o" Pe$e Basco T" ad() )$ a(($)('
a.
epe asco, &apital.....................................................................
",00
:stimated Gncollectible >ccount.......................................... b. epe asco, &apital............... .................................................. .... >ccumulated Cepreciation 9
",00 00 00
12 Chapter 1
T" c#"($ )$ b""('
:stimated Gncollectible >ccount....................................................... >ccumulated Cepreciation 9 ccounts ayable.............................................................................. epe asco, &apital........................................................................... &ash. ........................................................................................... >ccounts A eceivable................................................................... erchandise nventory................................................................
4,800 $,00 ",-00 "$,00 400 $-,000 0,000 ,000
Boo6s o" te Partnersi$ T" !$c"!d )$ ,$()%$) ". P$+$ a(c"'
&ash................................................................................................... >ccounts Aeceivable......................................................................... erchandise nventory...................................................................... ccumulated Cepreciation 9 ccounts ayable........................................................................ epe asco, & apital.....................................................................
400 $-,000 0,000 ,000 4,800 $,00 ",-00 "$,00
T" !$c"!d )$ ,$()%$) ". Ca!#" T"!!$'
&ash................................................................................................... &arlo orre, &apital.....................................................................
43,0
Com$utation% epe asco, capital &Base1.......................................................... Civide by epe asco's D ratio.............................................
"$,00 ///40
otal a*reed capital..................................................................... ultiply by &arlo orre's D ratio..........................................
38,30 ///-0
&ash to be invested by &arlo orre..............................................
43,0
P!"b#$% 1 & 4 a'
43,0
.oces9 boo;s ill be used b$ the partnership
Boo6s o" Sales $. Ad(), E)!,$(
(a) Kales, &apital........................................................................ >ccumulated Cepreciation 9
",00
(b) ?ood@ill............................................................................... Kales, &apital....................................................................
",000
",00
",000
Partnership – Basic Considerations and Formation
.
C#"(, E)!
>llo@ance for ad Cebts............................................................ >ccumulated Cepreciation 9 Celivery :7uipment...................... >ccumulated Cepreciation 9 ccounts ayable........................................................................ 1otes ayable............... ............................................................... >ccrued a%es............................................................................. Kales, &apital............................................................................... &ash...................................................................................... >ccounts nventory............................................................... erchandise nventory......................................................... repaid nsurance.................................................................. Celivery :7uipment..............................................................
$,800 8,000 5$,00 -4,000 40,000 8,000 4,000 4,800 3,000 $5,000 ",00 48,000 5-,000 ",000
Boo6s o" Roces &Boo6s o" te Partnersi$1 $.
.
Ad(), E)!,$(
(a) Aoces, &apital............................................................................. >llo@ance for ad Cebts......................................................
$,-00
(b) >ccumulated Cepreciation 9
$-,000
(c) erchandise nventory................................................................ Aoces, &apital.......................................................................
8,000
(d) ?ood@ill..................................................................................... Aoces, &apital.......................................................................
40,000
$,-00
$-,000
8,000
40,000
T" !$c"!d )$ ,$()%$) ". Sa#$('
&ash................................................................................................... >ccounts Aeceivable......................................................................... erchandise nventory...................................................................... repaid nsurance.............................................................................. Celivery :7uipment........................................................................... llo@ance for ad Cebts............................................................ >ccumulated Cepreciation 9 Celivery :7uipment......................
4,800 3,000 $5,000 ",00 48,000 5-,000 ",000 $,800 8,000
>ccumulated Cepreciation 9 ccounts ayable........................................................................ 1otes ayable............... ............................................................... >ccrued a%es............................................................................. Kales, &apital...............................................................................
5$,00 -4,000 40,000 8,000 4,000
14 Chapter 1
b'
ales9 boo;s ill be used b$ the partnership
Boo6s o" Roces $. Ad(), E)!,$( Kee Ae7uirement (a). . C#"(, E)! >llo@ance for ad Cebts............................................................ >ccumulated Cepreciation 9 Celivery :7uipment...................... >ccumulated Cepreciation 9 ccounts ayable........................................................................ >ccrued a%es............................................................................. Aoces, &apital............................................................................. &ash...................................................................................... >ccounts Aeceivable............................................................. erchandise nventory......................................................... repaid nsurance.................................................................. Celivery :7uipment..............................................................
$,-00 $,800 -4,000 $04,000 -,400 4,000 $4,400 3,-00 $",800 4,800 $5,00 $44,000 40,000
Boo6s o" Sales &Boo6s o" te Partnersi$1 $.
Ad(), E)!,$(
Kee Ae7uirement (a). .
T" !$c"!d )$ ,$()%$) ". R"c$('
&ash................................................................................................... >ccounts Aeceivable......................................................................... erchandise nventory...................................................................... repaid nsurance.............................................................................. Celivery :7uipment........................................................................... llo@ance for ad Cebts............................................................ >ccumulated Cepreciation 9 Celivery :7uipment...................... >ccumulated Cepreciation 9 ccounts ayable........................................................................
$4,400 3,-00 $",800 4,800 $5,00 $44,000 40,000 $,-00 $,800 -4,000 $04,000
>ccrued a%es............................................................................. Aoces, &apital.............................................................................
-,400 4,000
Partnership – Basic Considerations and Formation
c'
! ne set o1 boo;s ill be opened b$ the partnership
Boo6s o" Roces $. Ad(), E)!,$( Kee Ae7uirement (a). . C#"(, E)!
Kee Ae7uirement (b). Boo6s o" Sales $. Ad(), E)!,$( Kee Ae7uirement (a). . C#"(, E)! Kee Ae7uirement (a). Ne8 Partnersi$ Boo6s T" !$c"!d )$ ,$()%$) ". R"c$( ad Sa#$('
&ash................................................................................................... >ccounts Aeceivable......................................................................... erchandise nventory...................................................................... repaid nsurance.............................................................................. Celivery :7uipment (net).................................................................. llo@ance for ad Cebts............................................................ >ccounts ayable........................................................................ 1otes ayable............... ............................................................... >ccrued a%es............................................................................. Aoces, &apital............................................................................. Kales, &apital...............................................................................
$5,00 $5,-00 "4,800 8,000 4-,400 84,800 3,000 $4,400 $-8,000 40,000 $4,000 4,000 4,000
16 Chapter 1
P!"b#$% 1 & 5
1'
T" c#"($ Ma"( b""('
>llo@ance for ad Cebts................................................................... >ccounts ayable.............................................................................. 1otes ayable............... ..................................................................... >ccrued nterest ayable................................................................... A. a*no, &apital.............................................................................. &ash. ........................................................................................... >ccounts A eceivable................................................................... erchandise nventory................................................................ :7uipment................................................................................... =ther >ssets................................................................................ 2'
,000 $",000 $,000 ",000 5,000
T" ad() )$ b""( ". La%a'
?ood@ill............................................................................................ >llo@ance for ad Cebts............................................................ J. a*man, &apital....................................................................... 3'
$,000 -,000 $0,000 "00 4,300
8,000 $0 3,350
T" !$c"!d )$ ,$()%$) ". Ma"'
&ash................................................................................................... >ccounts Aeceivable......................................................................... erchandise nventory...................................................................... :7uipment......................................................................................... =ther >ssets....................................................................................... >llo@ance for ad Cebts............................................................ >ccounts ayable........................................................................ 1otes ayable............... ............................................................... >ccrued nterest ayable............................................................. A. a*no, &apital.......................................................................
,000 $",000 $,000 ",000 5,000 $,000 -,000 $0,000 "00 4,300
T" ad() )$ ,$()%$)( ". )$ +a!)$!('
&ash................................................................................................... A. a*no, &apital....................................................................... &P5*())) 9 P/'(:)) 0 P.)(5))1
$0,"00 $0,"00
J. a*man, &apital............................................................................. &ash. ........................................................................................... >ccounts ayable to J. a*man................................................... &P,5())) ; P:(:<) 0 P:)(:<) 9 P5*())) 0 P5*(:<)1
",350 ","00 $,450
Partnership – Basic Considerations and Formation
4'
La%a ad Ma" a#ac$ S$$) $c$%b$! 31* 2008
A s s e t s &ash................................................................................................... >ccounts receivable........................................................................... ess >llo@ance for bad debts............................................................ erchandise inventory...................................................................... :7uipment......................................................................................... =ther assets........................................................................................ ?ood@ill ..........................................................................................
"4,000 $,$0
otal >ssets.................................................................................
",350 $,000 8,000 4-,000 ///8,000 $$,350
Lia!ilities and Ca$ital >ccounts payable............................................................................... 1otes payable................ ................................................ .................... >ccrued interest p ayable.................................................................... >ccounts payable to J. a*man......................................................... J. a*man, capital.............................................................................. A. a*no, capital..............................................................................
$8,000 $,000 "00 $,450 ",000 //",000
otal iabilities and &apital........................................................
$$,350
P!"b#$% 1 & 6 1'
Boo6s o" Toledo oledo, &apital............................................................................ >llo@ance for ad Cebts &.*+ x P5/()))1..........................
4,800 4,800
Boo6s o" =reta Greta, &apital.............................................................................. >llo@ance for ad Cebts &.)+ x P/'()))1..........................
,400
&ash &<)+ x P./()))1................................................................. oss from Kale of =ffice :7uipment........................................... =ffice :7uipment..................................................................
$0,800 $,00
,400
$,000
oledo, &apital &.-' x P.(/))1.................................................... Greta, &apital.............................................................................. oss from Kale of =ffice :7uipment.....................................
"00 500 $,00
18 Chapter 1
2'
3'
Ne8 Partnersi$ Boo6s &ash. ........................................................................................... >ccounts Aeceivable................................................................... erchandise................................................................................ =ffice :7uipment........................................................................ >llo@ance for ad Cebts...................................................... >ccounts ayable.................................................................. 1otes ayable................ ....................................................... oledo, &apital...................................................................... o record the investment of oledo.
",00 ",000 40,000 $0,000
&ash. ........................................................................................... >ccounts Aeceivable................................................................... erchandise................................................................................ oledo, &apital............................................................................ >llo@able for ad Cebts...................................................... >ccounts ayable.................................................................. Greta, & apital........................................................................ o record the investment of Greta.
,800 4,000 "-,000 "00
&ash................................................................................................... Greta, &apital.............................................................................. o record Greta's cash contribution.
",400
4,800 $0,000 ,000 -8,400
,400 $-,000 -4,300
",400
Com$utation% oledo, capital (-8,400 9 "00)................................................ -8,$00 Civide by oledo's profit share percenta*e.................................. ////0 otal a*reed capital of the partnership......................................... $"-,00 ultiply by Greta's profit share percenta*e................................. ////0 >*reed capital of Greta............................................................... -8,$00 Greta, capital............................................................................... //-4,300 &ash contribution of Greta.......................................................... ",400 or oledo, capital (-8,400 9 "00)................................................ -8,$00 ess Greta, capital....................................................................... //-4,300 &ash contribution of Greta..........................................................
",400
Partnership – Basic Considerations and Formation
4'
T"#$d" ad U!$)a Pa!)$!(,+ a#ac$ S$$) # 1* 2008
A s s e t s &ash................................................................................................... >ccounts receivable........................................................................... ess >llo@ance for bad debts............................................................ erchandise...................................................................................... =ffice e7uipment............................................................................... otal >ssets.................................................................................
5,400 -,000 //3,00
48,800 3-,000 //$0,000 $-4,00
Lia!ilities and Ca$ital >ccounts payable............................................................................... 1otes payable................ ................................................ .................... oledo, capital................................................................................... Greta, capital.....................................................................................
-,000 ,000 -8,$00 //-8,$00
otal iabilities and &apital........................................................
$-4,00
