question archive How much is the Carrying value of the equipment at the time of formation?* (2 points) GD and CL decided to form a partnership on October 1, 2019
How much is the Carrying value of the equipment at the time of formation?* (2 points) GD and CL decided to form a partnership on October 1, 2019
Subject:AccountingPrice: Bought3
How much is the Carrying value of the equipment at the time of formation?* (2 points) GD and CL decided to form a partnership on October 1, 2019. Their Statement of Financial Position on this date were: GD CL Cash P 65,625 P 164,062.50 Accounts Receivables 1,487,500 896,875 Merchandise Inventory 875,000 885,937.50 Equipment 656,250 1,268,750 TOTAL P 3,084,375 P3,215,625 Accounts Payable GD, Capital CL, Capital TOTAL P 459,375 2,625,000 P 1,159,375 P 3,084,375 2,056,250 P3, 215,625 They agreed to the following adjustments: Equipment of GD is under-depreciated by P87,500 and that CL is over-depreciated by P131,250. Allowance for doubtful accounts is to be set up amounting to P297,500 for GD and P196,875 for CL. Inventories of P21,875 and P15,312.50 are worthless in the books of GD and CL, respectively. The partnership agreement provides for a profit and loss ratio of 7:3 for GD and CL, respectively.
