Marilou Malquisto, Ma. Fretcyl Beringuel and Mark Anthony Alemanza were all successful entrepreneurs. They believed that...

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Marilou Malquisto, Ma. Fretcyl Beringuel and Mark Anthony Alemanza were all successful entrepreneurs. They believed that once they pulled their resources together and with their combined expertise and managerial skills, they can surely beat the existing competitors in the locality. Their respective post-closing trial balance are presented below: Cash Accounts Receivable Estimated Uncollectible Accounts Merchandise Inventory Equipment Accumulated Depreciation Capital Malquisto Beringuel P 950,000 P 850,000 70,000 90,000 3,000) ( 5,000) 420,000 350,000 ( Alemanza P 750,000 25,000 2,000) 600,000 450,000 480,000 250,000 (180,000) (230,000) (175,000) P 1,607,000 P1,785.000 P1,298.000 Chapter 16 They agreed to comply with the following adjustments: 1. Accounts Receivable should have the following probability of collection: Malquisto, P90%; Beringuel, 95%, and Alemanza, 98%. 2. Merchandise should be revalued at 90% of the book value to provide for obsolence 3. Equipment should have the carrying values as follows: Malquisto, P165,000; Beringuel, P150,000 and Alemanza, P180,000. 4. Each of the prospective partner should level off their cash contribution to P1,000,000. Required: 1.Adjusting entries in their respective sole proprietorship book. 2. Closing entries in their respective sole proprietorship book. 3.Compound journal entries to open the books of the partnership. A Marilou Malquisto, Ma. Fretcyl Beringuel and Mark Anthony Alemanza were all successful entrepreneurs. They believed that once they pulled their resources together and with their combined expertise and managerial skills, they can surely beat the existing competitors in the locality. Their respective post-closing trial balance are presented below: Cash Accounts Receivable Estimated Uncollectible Accounts Merchandise Inventory Equipment Accumulated Depreciation Capital Malquisto Beringuel P 950,000 P 850,000 70,000 90,000 3,000) ( 5,000) 420,000 350,000 ( Alemanza P 750,000 25,000 2,000) 600,000 450,000 480,000 250,000 (180,000) (230,000) (175,000) P 1,607,000 P1,785.000 P1,298.000 Chapter 16 They agreed to comply with the following adjustments: 1. Accounts Receivable should have the following probability of collection: Malquisto, P90%; Beringuel, 95%, and Alemanza, 98%. 2. Merchandise should be revalued at 90% of the book value to provide for obsolence 3. Equipment should have the carrying values as follows: Malquisto, P165,000; Beringuel, P150,000 and Alemanza, P180,000. 4. Each of the prospective partner should level off their cash contribution to P1,000,000. Required: 1.Adjusting entries in their respective sole proprietorship book. 2. Closing entries in their respective sole proprietorship book. 3.Compound journal entries to open the books of the partnership. A