Required: Prepare the entries to record the above transactions. 2. Lileth Adriano, who plans to go abroad, is selling her mini-donut business. Her friend, Benita Solido is interested to buy it but can...


Required: Prepare the entries to record the above transactions.<br>2. Lileth Adriano, who plans to go abroad, is selling her mini-donut business. Her friend, Benita Solido<br>is interested to buy it but can only afford to pay P350,000. The following are the assets of<br>Adriano's business:<br>Book Value<br>Market Value<br>Equipment (net of accumulated<br>depreciation of P25,000)<br>Furniture and Fixtures (net of<br>accumulated depreciation of<br>P5,000)<br>Raw Materials<br>Franchise Right<br>P350,000<br>P300,000<br>75,000<br>50,000<br>35,000<br>25,000<br>150,000<br>100,000<br>Total<br>P610,000<br>P475,000<br>a. How much is the net worth assuming there is a mortgage note of P150,000 attached to<br>the equipment?<br>b. Will Benita Solido be able to afford to buy the business?<br>Make the entry in the books of Benita.<br>C.<br>Page<br>1 -<br>

Extracted text: Required: Prepare the entries to record the above transactions. 2. Lileth Adriano, who plans to go abroad, is selling her mini-donut business. Her friend, Benita Solido is interested to buy it but can only afford to pay P350,000. The following are the assets of Adriano's business: Book Value Market Value Equipment (net of accumulated depreciation of P25,000) Furniture and Fixtures (net of accumulated depreciation of P5,000) Raw Materials Franchise Right P350,000 P300,000 75,000 50,000 35,000 25,000 150,000 100,000 Total P610,000 P475,000 a. How much is the net worth assuming there is a mortgage note of P150,000 attached to the equipment? b. Will Benita Solido be able to afford to buy the business? Make the entry in the books of Benita. C. Page 1 -

Jun 07, 2022
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