On April 15, 2014, John and Greg formed a partnership. John is to invest a certain business asset at value which are yet to be agreed upon. He is to transfer his business liabilities and is to contribute sufficient cash to bring his total capital to P180,000 which is 60% of the total capital as had been agreed upon. Greg agrees to invest cash of P30,000 and merchandise valued at current market price. Details regarding the lok values of John's assets and liabilities and their corresponding valuations are: Book Agreed values values Accounts receivable P54,000 P54,000 Allowance for bad debts 3,600 6,000 Merchandise inventory 96,600 105,000 Store equipment 27,000 27,000 Accumulated depreciation-SE 18,000 13,200 Office equipment Accumulated depreciation- OE Accounts payable 18,000 4,800 18,000 9,600 48,000 48,000 The value of merchandise to be invested by Greg? The cash to be invested by John?

On April 15, 2014, John and Greg formed a partnership. John is to invest a certain business asset at value which are yet to be agreed upon. He is to transfer his business liabilities and is to contribute sufficient cash to bring his total capital to P180,000 which is 60% of the total capital as had been agreed upon. Greg agrees to invest cash of P30,000 and merchandise valued at current market price. Details regarding the lok values of John's assets and liabilities and their corresponding valuations are: Book Agreed values values Accounts receivable P54,000 P54,000 Allowance for bad debts 3,600 6,000 Merchandise inventory 96,600 105,000 Store equipment 27,000 27,000 Accumulated depreciation-SE 18,000 13,200 Office equipment Accumulated depreciation- OE Accounts payable 18,000 4,800 18,000 9,600 48,000 48,000 The value of merchandise to be invested by Greg? The cash to be invested by John?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 37P

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