ACTIVITY

Answer this two problem. Need ASAP. Thank you.

Problem 1: ABC admits D as a partner in his business. Accounts in the ledger of ABC on December 29, 2021 shows Cash 455,000.00 Accounts Receivable 735,000.00 Merchandise Inventory 840,000.00 Accounts Payable 455,000.00 ABC Capital 1,575,000.00 As per agreement, the following adjustments should be made: a. 2% of accounts receivable are considered uncollectible b. merchandise inventory is valued at P875,000 c. Prepaid expenses of P43,750 and accrued expenses of P11,550 are to be recognized K will invest cash sufficient to obtain 1/3 interest in the partnership. Required: 1. Give the entries to re-value ABC's capital. 2. Give the entries to set the new books of ABC&D Partnership Problem 2: Suppose ABC&D Partnership generated an annual income of P450,000, determine the partners share in the profit and make the necessary entry if their agreed profit and loss distribution is 10% interest on inception capital (use data from problem 1), monthly salary of ABC - P20,000, montly salary of D - P12,000, bonus to ABC- P50,000, bonus to D- P30,000, the balance will be divided equally