Olivia Jadulco, Edgar Mabad and Diona Anghag were partners in a business engaged in printing and...
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Olivia Jadulco, Edgar Mabad and Diona Anghag were partners in a business engaged in printing and publishing. The Statement of Financial Position reveals that their business has no obligation to outside creditors. ASSETS P Cash 120,000 400,000 PARTNER'S EQUITY Jadulco, Capital (30%) P Mabad, Capital (20%) Anghag, Capital (50%) Accounts Receivable 150,000 280,000 Inventories 260,000 150,000 Equipment 300,000 Total P 830,000 Total P 830,000 On January 1, 20A, the partners agree to admit Mayla Canete as a new partner after considering the following revaluation and adjustments: 1. Allowance for doubtful accounts of P 20,000 is to be established for possible uncollectible account. 2. Inventories should be recorded at their net realizable value of P 240,000. 3. The net book value of the equipment should be adjusted at P 250,000. 4. Accrued expenses should be recognized, P 10,000. Instruction: 1. Prepare necessary adjusting journal entries. 2. Record admission of Canete assuming: a. She purchases 1/3 of partnership's interest. b. She invests P 200,000 for a 14 interest on agreed capitalization of P 930,000. C. She invests P 200,000 for a 1/5 interest in the new firm's capital of P 930,000. Olivia Jadulco, Edgar Mabad and Diona Anghag were partners in a business engaged in printing and publishing. The Statement of Financial Position reveals that their business has no obligation to outside creditors. ASSETS P Cash 120,000 400,000 PARTNER'S EQUITY Jadulco, Capital (30%) P Mabad, Capital (20%) Anghag, Capital (50%) Accounts Receivable 150,000 280,000 Inventories 260,000 150,000 Equipment 300,000 Total P 830,000 Total P 830,000 On January 1, 20A, the partners agree to admit Mayla Canete as a new partner after considering the following revaluation and adjustments: 1. Allowance for doubtful accounts of P 20,000 is to be established for possible uncollectible account. 2. Inventories should be recorded at their net realizable value of P 240,000. 3. The net book value of the equipment should be adjusted at P 250,000. 4. Accrued expenses should be recognized, P 10,000. Instruction: 1. Prepare necessary adjusting journal entries. 2. Record admission of Canete assuming: a. She purchases 1/3 of partnership's interest. b. She invests P 200,000 for a 14 interest on agreed capitalization of P 930,000. C. She invests P 200,000 for a 1/5 interest in the new firm's capital of P 930,000.
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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