1, 2 and
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What is the answer in numbers 1, 2 and 3?
![Preparation of the Financial Statements
Castor, Arenas and Laurente, who are partners in the Super Manila Novelty Store, share
profits in the ratio of 30:20:50. The adjusted trial balance on Dec. 31, 2016 folows:
Debits
Credits
Cash
110,000
80,000
P
Accounts Receivable
Merchandise Inventory
800,000
20,000
Prepaid Rent
Prepaid insurance
15,000
50,000
115,000
Accounts Payable
Notes Payable
Castor, Capital
Arenas, Capital
Laurente, Capitał
Sales
125,000
275,000
110,000
2,500,000
Cost of Sales
Salaries Expense
Rent Expense
Insurance Expense
Utilities Expense
1,450,000
450,000
200,000
30,000
20,000
P3,175,000
P3,175,000
Totals
Required:
Prepare the 2016 statement of c omprehensive income. Show the.division of profit
at the l ower portion of the statement.
1.
Prepare the statement of changes in partners' equity for 2016.
following additional information:
Assume the
2.
Capital Accounts,
Jan. 1, 2016
Investments
during
the year
Withdrawals
during
the year
P 50,000
P.75,000
300,000
150,000
-0-
P50,000
40,000
Castor
25,000
Arenas
-0-
Laurente
3.
Prepare the stat ement of finànciai position as at Dec. 31, 2016.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd50c8b96-8329-4130-852d-aba3cae41ffc%2Ffada33d6-e3da-4bfa-95fa-5e621c75e2f2%2F9c1twrm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Preparation of the Financial Statements
Castor, Arenas and Laurente, who are partners in the Super Manila Novelty Store, share
profits in the ratio of 30:20:50. The adjusted trial balance on Dec. 31, 2016 folows:
Debits
Credits
Cash
110,000
80,000
P
Accounts Receivable
Merchandise Inventory
800,000
20,000
Prepaid Rent
Prepaid insurance
15,000
50,000
115,000
Accounts Payable
Notes Payable
Castor, Capital
Arenas, Capital
Laurente, Capitał
Sales
125,000
275,000
110,000
2,500,000
Cost of Sales
Salaries Expense
Rent Expense
Insurance Expense
Utilities Expense
1,450,000
450,000
200,000
30,000
20,000
P3,175,000
P3,175,000
Totals
Required:
Prepare the 2016 statement of c omprehensive income. Show the.division of profit
at the l ower portion of the statement.
1.
Prepare the statement of changes in partners' equity for 2016.
following additional information:
Assume the
2.
Capital Accounts,
Jan. 1, 2016
Investments
during
the year
Withdrawals
during
the year
P 50,000
P.75,000
300,000
150,000
-0-
P50,000
40,000
Castor
25,000
Arenas
-0-
Laurente
3.
Prepare the stat ement of finànciai position as at Dec. 31, 2016.
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