User Account

All Pages

How much is the capital account of aa upon formation

Assignment Help Accounting Basics
Reference no: EM133133441

Question - On February 14, AA and BB formed a partnership and contributed the following assets at historical costs:

AA

BB

Cash

P600,000

P200,000

Inventories

?

?

Furniture and fixtures

40,000

Delivery equipment

80,000

Land

300,000

The land was subject to a mortgage which has an unpaid balance of P50,000. The mortgage will be assumed by the partnership. AA and BB agreed to share profits and losses in the ratio of 1:2, respectively. The partners agreed to contribute inventories (BB is to contribute inventories worth 2.5 times the peso value of the inventories to be contributed by AA) in order to have their capital credits in the same ratio as their profits and losses ratio.

Required - How much is the capital account of AA upon formation of the partnership?

Reference no: EM133133441

Questions Cloud

Provide a counter argument to student position : Provide a counter argument to that student's position. If you are working alone, write a response countering your own argument.
Overall economic impact of berkeley soda tax : Q1(a) How would you evaluate the overall economic impact of Berkeley's soda tax? Will it be good for the economy? Explain as thoroughly as possible using concep
What do the managers learn from the cash budget : Half of the $424,000 in sales from last quarter will be collected during Q2. What do the managers learn from the cash budget for Q2
Target market for your business : Discussion is to actively discuss with your classmates the topic of who is the target market for your business.
How much is the capital account of aa upon formation : The land was subject to a mortgage which has an unpaid balance of P50,000. How much is the capital account of AA upon formation of the partnership
Concept of forecasting and two forecasting techniques : Describe the concept of forecasting and two forecasting techniques and Describe four key areas that should be addressed in financial administration policies
How much is the proceeds from the sale of non-cash : On January 31, 2022, partner AA received P10,000,000. How much is the proceeds from the sale of non-cash assets in January 2022
Determine for December the amount of Earnings per Share : The Common Stock account for Baltimore Corporation on January 1, 2020 was $70,000. Determine for December the amount of Earnings per Share
Who is your target audience : Who is your target audience? What are their tastes and interests? How can you translate those qualities into a look for your brand?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Obsolescence is an example of which cost category

Obsolescence is an example of which cost category?

  What are the tax consequences of the sale of realty

Heron Company purchases commercial realty on November 13, 2001, for $650,000. What are the tax consequences of the sale of realty

  Identify the type of auditors report to be issued

Identify the type of auditor's report to be issued. Main Insurance is a reporting entity. Ms Pit is the finance director and refuses to adopt AASB

  Determine the unrealized gain or loss on the investment

Big Bad Company's stock was trading on the open market for $17.50 per share. Determine the unrealized gain or loss on the investment

  Evaluate stakeholder claims and interests

Evaluate stakeholder claims and interests and how they may conflict. Use a suitable model to assess various stakeholder interests in the group

  Preparing financial statements based on data

After reading and discussing how important it is for auditors to gather evidence to back up client claims, you are now introduced to accounting services where it is unnecessary to verify management's information.

  What amount of budgeted labor cost

What amount of budgeted labor cost would appear in the July selling, general, and administrative expense budget? What is HDD's budgeted factory labor cost

  Calculate the net deduction for unearned premiums

Calculate the net deduction for unearned premiums if an insurance entity's unearned premium reserve increased from $80,000 to $100,000.

  What is the prepaid or accrued benefit cost at year-end

During the current year, the actuary determined the current service cost at P2,500,000. What is the prepaid or accrued benefit cost at year-end

  What total cost will be

If these units are fully complete by the end of the month, their total cost will be? Marithe Company uses FIFO method in its process costing system.

  Prepare the journal entries to record the sale on july

Harwell Company manufactures automobile tires. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and payment on August 15, 2011

  Determine the optimum level of stockholding for the company

Discuss what you consider to be the most important factors determining the optimum level of stockholding for the company.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd