Professional Documents
Culture Documents
2013
January 2: Cash 100,000
Cody, Capital 100,000
To record admission of Cody for one-fourth interest
upon investment of P100,000.
New Partner Invest in Partnership
Case 2. New Partner’s Investment More than Proportion of the
Partnership Book Value (agreed capital)
(2)Inventory 2,000
Bee, Capital 1,000
Cee, Capital 600
Dee, Capital 400
To adjust inventory
C Cash 30,000
Capital Stock 20,000
Paid-in Capital in Excess of Par10,000
To record transfer of assets and liabilities to RC Corporation
New Books Opened for the Corporation
Entries in the Books of the Partnership
A Inventories (2) 9,000
Equipment (3) 20,000
Goodwill (5) 20,000
Allowance for Bad Debts (1) 800
Accumulated Depreciation (3) 9,000
Accrued Expenses (4) 2,200
Reyes, Capital 29,600
Cruz, Capital 7,400
Adjustment of accounts.
B Stocks of RC Corporation 165,000
Notes Payable 40,000
Accounts Payable 30,000
Accrued Expenses 2,200
Allowance for Bad Debts 2,000
Accumulated Depreciation 61,000
Cash 24,000
Accounts Receivable 56,200
Inventories 60,000
Equipment 140,000
Goodwill 20,000
To record transfer of assets and liabilities to RC Corporation
INCORPORATION OF PARTNERSHIP
C Reyes, Capital 125,580
Cruz, Capital 39,420
Stock of RC Corporation 165,000
To record issuance of 5,500 shares of P20 par value stock to the
partners at a price of P30 a share (P165,000/5,500 shares
Reyes: P125,580 / P30/share = 4,186 shares
Cruz: P39,420 / P30/share = 1.314 shares
New Books Opened for the Corporation
Entries in the Books of the New Corporation
A Cash 24,000
Accounts Receivable 56,200
Inventories 60,000
Equipment (Net) 79,000
Goodwill 20,000
Allowance for Bad Debts 2,000
Notes Payable 40,000
Accounts Payable 30,000
Accrued Expenses 2,200
Capital Stock 110,000
Paid-in Capital in Excess of Par 55,000
To record the acquisition of assets and liabilities from the partnership at
their adjusted values.
B Cash 30,000
Capital Stock 20,000
Paid-in Capital in Excess of Par 10,000
To record transfer of assets and liabilities to RC Corporation
INCORPORATION OF PARTNERSHIP
RC Corporation
Statement of Financial Position
June 30, 2013
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Assets
Cash P 54,000
Accounts Receivable P56,200
Less: Allowance for bad debts 2,000 54,200
Inventories 60,000
Equipment 79,000
Goodwill 20,000
Total Assets P267,200
Liabilities & Partner’s Equity
Current Liabilities:
Notes Payable P 40,000
Accounts Payable 30,000
Accrued Expenses 2,200
Total Liabilities 72,200
Equity:
Capital stock P130,000
Paid-in capital in excess of par 65,000 195,000
Total Liabilities and Capital P267,200