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  • Acfar Fa#9-B-1

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    Rayne Andreana Yu
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    FL contributed land valued at P650,000 with a market value of P1,350,000, inventory valued at P600,000 with a market value of P510,000, and P280,000 cash to a partnership. The partnership assumed a P350,000 note payable that FL used to purchase the land. RB agreed to contribute cash equal to FL's net investment. The journal entry to record the initial investments debits cash, land, and inventory for their contribution values, credits the note payable and capital accounts of FL and RB for their investments.

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    ACFAR FA#9-B-1

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    FL contributed land valued at P650,000 with a market value of P1,350,000, inventory valued at P600,000 with a market value of P510,000, and P280,000 cash to a partnership. The partnership assumed a P350,000 note payable that FL used to purchase the land. RB agreed to contribute cash equal to FL's net investment. The journal entry to record the initial investments debits cash, land, and inventory for their contribution values, credits the note payable and capital accounts of FL and RB for their investments.

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    12 views2 pages

    Acfar Fa#9-B-1

    Uploaded by

    Rayne Andreana Yu
    FL contributed land valued at P650,000 with a market value of P1,350,000, inventory valued at P600,000 with a market value of P510,000, and P280,000 cash to a partnership. The partnership assumed a P350,000 note payable that FL used to purchase the land. RB agreed to contribute cash equal to FL's net investment. The journal entry to record the initial investments debits cash, land, and inventory for their contribution values, credits the note payable and capital accounts of FL and RB for their investments.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Formative Assessment #9-B-1 Write your answer here:

    INITIAL INVESTMENT

    Problem: Date Particulars


    FL contributed land, inventory, and P280,000 cash a Cash
    to a partnership. The land has a carrying amount of P650,000 Land
    and a market value of P1,350,000. The inventory has a Inventory
    book value of P600,000 and a market value of P510,000. Notes Payable
    The partnership also assumed a P350,000-note payable FL, Capital
    owned by FL that was used to purchase the land. RB, Capital
    RB agreed to put up cash equivalent to FL''s net investment To record initial investments
    by FL and RB
    Required: Prepare the journal entry to recognize FL's
    and RB's investment in the partnership.
    (with explanation)
    PR Debit Credit
    2,070,000.00
    1,350,000.00
    510,000.00
    350,000.00
    1,790,000.00
    1,790,000.00

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