Chapter 1-Accounting for Partnership Formation & Operation On March 1, of the current year, PP and QQ decide to combine their businesses and form a partnership. Their balance sheets on March 1, before adjustments, PP MULTIPLE CHOICE (PROBLEMS) QQ 3,750.00 showed the following: P Cash Accounts Receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses Total Accounts Payable Capital Total 9,000.00 18,500.00 30,000.00 30,000.00 11,500.00 6,375.00 105,375.00 45,750.00 59,625.00 105,375.00 13,500.00 19,500.00 9,000.00 2,750.00 3,000.00 51,500.00 18,000.00 33,500.00 51,500.00 P. P. P. P They agreed to have the following items recorded in their books: a. Provide 2% allowance for doubtful accounts. b. PP's furniture and fixtures should be P31,000, while QQ's office equipment is under-depreciated by P250. c. Rent expense incurred previously by PP was not yet recorded amounting to P1,000, while salary expense incurred by QQ was not also recorded amounting to P800. d. The fair market value of inventory amounted to: for PP P29,500 and for QQ P21,000 1. Compute for the net (debit) credit adjustment for PP and QQ: a. PP: P2,870; QQ P2,820 b. PP: (P870); QQ: P180 c. PP: (P2,870); (P2,820) d. PP: 870; QQ:(P180)
Chapter 1-Accounting for Partnership Formation & Operation On March 1, of the current year, PP and QQ decide to combine their businesses and form a partnership. Their balance sheets on March 1, before adjustments, PP MULTIPLE CHOICE (PROBLEMS) QQ 3,750.00 showed the following: P Cash Accounts Receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses Total Accounts Payable Capital Total 9,000.00 18,500.00 30,000.00 30,000.00 11,500.00 6,375.00 105,375.00 45,750.00 59,625.00 105,375.00 13,500.00 19,500.00 9,000.00 2,750.00 3,000.00 51,500.00 18,000.00 33,500.00 51,500.00 P. P. P. P They agreed to have the following items recorded in their books: a. Provide 2% allowance for doubtful accounts. b. PP's furniture and fixtures should be P31,000, while QQ's office equipment is under-depreciated by P250. c. Rent expense incurred previously by PP was not yet recorded amounting to P1,000, while salary expense incurred by QQ was not also recorded amounting to P800. d. The fair market value of inventory amounted to: for PP P29,500 and for QQ P21,000 1. Compute for the net (debit) credit adjustment for PP and QQ: a. PP: P2,870; QQ P2,820 b. PP: (P870); QQ: P180 c. PP: (P2,870); (P2,820) d. PP: 870; QQ:(P180)
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 4PB
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,