The following balances were taken from the general ledger of Mercantile Company just after the partnership...
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The following balances were taken from the general ledger of Mercantile Company just after the partnership formation: Cash Accounts Receivable Allowance for Bad Debts Merchandise J. Lambo, Capital C. Poyot, Capital M. Ramirez, Capital Total Debit P 75,000 300,000 465,000 Credit P 840,000 P20,000 330,000 280,000 210,000 P840,000 June Lambo invested merchandise inventory, Carlos Poyot invested Accounts Receiv able and Medel Ramirez invested cash and merchandise inventory. 1. Make a T-account of the above accounts and make postings. 2. Reconstruct the journal entries recording the investment of the three partners. Assets Norman Lluisma Company Balance Sheet June 30, 2007 Cash Accounts Receivable P 40,000 Allow. for Bad Debts 15,000 Merchandise Equipment Acc. Depreciation Total Assets 23,000 Accounts Payable Accrued Expenses Total Liabilities 25,000 185,000 Liabilities 85,000 P318,000 Owner's Equity P 95,000 Lluisma, Capital 10,000 $45,000 18,000 P63,000 P255.000 Total Liabilities & Capital P318,000 Mr. Lluisama has just started his marketing operations and is saddled with cash problem already. Mrs. Merlen Damasco come to his rescue and offers to invest in the business a cash of uncertain amount that will match the adjusted capital of Mr. Lluisma depending on the results of the following proposals: a. Accounts Receivable should be at his own risk and should be out from record b. Equipment should be revalued at fair market value of P110.000 Required: 1. Opening journal entry in the new set of partnership book transfering all assets and liabilities of Mr. Lluisma and to record the contribution of Damasco. The following balances were taken from the general ledger of Mercantile Company just after the partnership formation: Cash Accounts Receivable Allowance for Bad Debts Merchandise J. Lambo, Capital C. Poyot, Capital M. Ramirez, Capital Total Debit P 75,000 300,000 465,000 Credit P 840,000 P20,000 330,000 280,000 210,000 P840,000 June Lambo invested merchandise inventory, Carlos Poyot invested Accounts Receiv able and Medel Ramirez invested cash and merchandise inventory. 1. Make a T-account of the above accounts and make postings. 2. Reconstruct the journal entries recording the investment of the three partners. Assets Norman Lluisma Company Balance Sheet June 30, 2007 Cash Accounts Receivable P 40,000 Allow. for Bad Debts 15,000 Merchandise Equipment Acc. Depreciation Total Assets 23,000 Accounts Payable Accrued Expenses Total Liabilities 25,000 185,000 Liabilities 85,000 P318,000 Owner's Equity P 95,000 Lluisma, Capital 10,000 $45,000 18,000 P63,000 P255.000 Total Liabilities & Capital P318,000 Mr. Lluisama has just started his marketing operations and is saddled with cash problem already. Mrs. Merlen Damasco come to his rescue and offers to invest in the business a cash of uncertain amount that will match the adjusted capital of Mr. Lluisma depending on the results of the following proposals: a. Accounts Receivable should be at his own risk and should be out from record b. Equipment should be revalued at fair market value of P110.000 Required: 1. Opening journal entry in the new set of partnership book transfering all assets and liabilities of Mr. Lluisma and to record the contribution of Damasco.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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