Chapter 7 Retained Earnings Name: Score: Class Schedule: Date : Problem 7-1 The entry shown below was taken from the general journal in closing the partnership books Kaizen Company on February 28, 2020: Accumulated Depreciation - Building P 600,000 Accumulated Depreciation - Store Equipment 20,000 Accumulated Depreciation - Service Vehicle 50,000 Notes Payable 300,000 Accounts Payable 75,400 Allowance for Doubtful Accounts 10,000 Chelsea Cua, Capital 194,000 Excelsa Du, Capital 194,000 Jam Fendi, Capital 194,000 Shine Pua, Capital 194,000 Sandy Wang, Capital 194,000 Cash P 160,400 Accounts Receivable 40,000 Merchandise Inventory 100,000 Store Supplies 5,000 Building 1,000,000 Store Equipment 320,000 Service Vehicle 400,000 To close the books of the partnership Additional Information: > Partnership liabilities are to be assumed by the newly-formed corporation called Kaizen Corp. D Kaizen Corp. was organized on March 1, 2020 which was authorized to issue 90,000 shares of 8% cumulative and participating P 50 par value preference shares and 500,000 ordinary shares with a par value of P 10 per share. The following transactions took place in 2020: Oct. 1 Polynesian Co. failed to pay the balance of its subscription and was declared delinquent after several calls and notices have been made by Kaizen Corp. 9 1-Daily billed Kaizen Corp. P3,000 for the news ads about the public auction sale. 22 The following bidders signified to pay the balance including the expenses incurred for the auction sale in exchange of the following number of preference shares: Mel Lambo 3,500 shares Cindy Rela 3,600 shares Jill Latin 4,000 shares 23 Collected the amount in full from the highest bidder and issued stock certificate. REQUIRED: Record the transactions given above in the appropriate journal. CamScanner