The account balances in the books of Academia Partnership at the end of its first year...

 

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The account balances in the books of Academia Partnership at the end of its first year of operations on December 31, 2019 are as follows: Accounts payable Todoroki, capital 756,000 Accounts receivable 186,000 600,000 Todoroki, drawing 144,000 Denki, capital Cash Interest expense 489,000 Denki, drawing 54,000 582,750 Gen. expenses-others 756,000 26,250 Interest income 21,000 Notes payable 360,000 Notes receivable 120,000 Purchases 4,920,000 Purchase discount 138,000 Purch. returns & allow. 99,000 Sales 5,100,000 Sales salaries 480,000 Store furniture 222,000 Store supplies 36,000 Taxes and licenses 36,000 The data requiring adjustments as of December 31, 2019 and agreements relating to division of partnership profit or loss are as follows: 1. Inventories: merchandise, P1,406,000; supplies, P16,500 2. Depreciation of store furniture, 10% a year. Additions to store furniture were made on March 1 costing P54,000 3. Accrued advertising, P9,500 4. Prepaid taxes and licenses, P10,000 5. Accrued taxes and licenses, P10,500 6. Accrued interest on notes payable, P3,750 7. Accrued interest on notes receivable, P6,000 8. Uncollectible accounts receivable, P9,300 9. Income tax, 30% 10. Todoroki and Denki agree to divide earnings as follows: a. Interest at 10% on beginning capital balances b. Salaries to the managing partner Todoroki of P100,000 c. Remaining profit or loss to be divided equally Instructions: On December 31, 2019, prepare an income statement, a statement of changes in partner's equity, and statement of financial position The account balances in the books of Academia Partnership at the end of its first year of operations on December 31, 2019 are as follows: Accounts payable Todoroki, capital 756,000 Accounts receivable 186,000 600,000 Todoroki, drawing 144,000 Denki, capital Cash Interest expense 489,000 Denki, drawing 54,000 582,750 Gen. expenses-others 756,000 26,250 Interest income 21,000 Notes payable 360,000 Notes receivable 120,000 Purchases 4,920,000 Purchase discount 138,000 Purch. returns & allow. 99,000 Sales 5,100,000 Sales salaries 480,000 Store furniture 222,000 Store supplies 36,000 Taxes and licenses 36,000 The data requiring adjustments as of December 31, 2019 and agreements relating to division of partnership profit or loss are as follows: 1. Inventories: merchandise, P1,406,000; supplies, P16,500 2. Depreciation of store furniture, 10% a year. Additions to store furniture were made on March 1 costing P54,000 3. Accrued advertising, P9,500 4. Prepaid taxes and licenses, P10,000 5. Accrued taxes and licenses, P10,500 6. Accrued interest on notes payable, P3,750 7. Accrued interest on notes receivable, P6,000 8. Uncollectible accounts receivable, P9,300 9. Income tax, 30% 10. Todoroki and Denki agree to divide earnings as follows: a. Interest at 10% on beginning capital balances b. Salaries to the managing partner Todoroki of P100,000 c. Remaining profit or loss to be divided equally Instructions: On December 31, 2019, prepare an income statement, a statement of changes in partner's equity, and statement of financial position