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Parcor 3

Mo and Quack formed a partnership, with Mo contributing 60% of the capital and Quack contributing 40%. Mo's initial capital contribution was $1,500,000. Based on the partners' agreed capital percentages, Mo's interest in the total partnership capital of $2,250,000 was calculated to be $1,350,000. Therefore, Mo should withdraw $150,000 to adjust her capital balance to the agreed amount. The document also provides solutions to partnership formation activities, including calculating total partnership capital based on an individual partner's agreed interest. It shows journal entries to record the formation of a new partnership between Tan and Tolentino, with Tolentino contributing 40% of the total partnership capital

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Shara Mae Samelo
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46 views2 pages

Parcor 3

Mo and Quack formed a partnership, with Mo contributing 60% of the capital and Quack contributing 40%. Mo's initial capital contribution was $1,500,000. Based on the partners' agreed capital percentages, Mo's interest in the total partnership capital of $2,250,000 was calculated to be $1,350,000. Therefore, Mo should withdraw $150,000 to adjust her capital balance to the agreed amount. The document also provides solutions to partnership formation activities, including calculating total partnership capital based on an individual partner's agreed interest. It shows journal entries to record the formation of a new partnership between Tan and Tolentino, with Tolentino contributing 40% of the total partnership capital

Uploaded by

Shara Mae Samelo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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-------------------------------------------------------------------------------------------------------------- Total partnership capital = 900,000/.

40
= 2,250,000
Module 1: Partnership Formation
Mo’s interest =2,250,000 x .60
-------------------------------------------------------------------------------------------------------------- =1,350,000
Activity 1-1(Individuals with no existing business form a partnership)
SOLUTIONS:
Moo should make a withdrawal of Php 150,000.00
Equipment 400,000
Initial investment Php 1,500,000
Accounts Receivable 360,000
Agreed investment 1,350,000
Sally, capital 706,000
Withdrawal of 150,000
Allowance for bad debts 54,000
Investment of Sally

Activity 1-2 (Individuals with no existing business form a partnership)


SOLUTIONS:
Mo = 60%
Quack = 40%

Cash 1,260,000
Computer 360,000
Notes payable 120,000
Moo, capital 1,500,000
Mo’s total invest prior to agreed interest rate

Activity 1-3 2.Opening entries – New partnership


SOLUTIONS:
Cash 4,000
1.Old books – ADJUSTMENTS (c/o CAPITAL ACCOUNT) Accounts receivable 160,000
Inventories 200,000
Tolentino, capital 32,000 Equipment 30,000
Allowance for doubtful accounts 32,000 Accounts payable 36,000
Tolentino, capital *310,000
Tolentino, capital 10,000 Allowance for doubtful accounts 48,000
Accumulated depreciation 10,000 Investment of Tolentino

*adjusted capital of Tolentino (40% agreed interest)


Total partnership capital = 310,000/.40
Closing entries: old books 775,000
Accounts payable 36,000
Tolentino, capital 310,000
Allowance for doubtful accounts 48,000 Cash 465,000
Accumulated depreciation 20, 000 Tan, capital 465,000
Cash 4,000
Accounts receivable 160,000
Inventories 200,000
Equipment 50,000
3.
Tan and Tolentino Marketing
Statement of Financial Position
April 8, 2021

ASSETS LIABILITIES & EQUITY


Cash 469,000 Accounts payable 36,000
Accounts receivable 160,000 Tolentino, capital 310,000
Allowance for bad debts (48,000) 112,000 Tan,capital 465,000
Inventory 200,000
Equipment 30,000

TOTAL ASSETS 811,000 TOTAL LIABILITIES & EQUITY 811,000

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