-8 4. On October 1, 20x4, J and K decided to pool their assets and form a partnership. They allocate profit and loss in the ratio of 44:56 for J and K, respectively. The firm is to take over business assets and assume business liabilities and capitals are to be based on net assets transferred after the following adjustments: a. J's inventory amounting to P12,000.00 is worthless, while K's agreed value at inventory amounted to P150,000.00 b. Uncollectible accounts of P7,200.00 for J is to be provided: a 5% allowance is to be recognized in the books of K c. Accrued rent income of P12,000.00 on J, and accrued salaries of P9,600.00 on K should be recognized on their respective books Interest at 16% on Notes receivable dated August 17, 20x4 should be accrued d. e. The office supplies unused amounted to P24,000.00 f. The equipment's agreed value amounted to P60,000.00 g. The furniture's and fixture has a fair market value of P108,000.00 h. Interest at 12% on Notes payable dated July 1, 20x4 should be accrued i. K has an unrecorded patent amounting to P48,000.00 and is to invest the additional cash necessary to have a 60% interest in the new firm In cases wherein days are considered, use 360 days as the basis. Balance sheets for J and K on October 1, 20x4 before adjustments are given below: ash Ccounts receivable lowance for doubtful accounts Otes receivable erchandise inventory fice supplies quipment Ccumulated depreciation - equipment urnitures and fixtures ccumulated depreciation - furniture's and fixtures tal assets Ccounts payable Otes payable apitals tal liabilities and capitals J 90,000.00 216,000.00 -4,800.00 K 54,000.00 180,000.00 -6,000.00 60,000.00 192,000.00 144,000.00 32,400.00 120,000.00 -54,000.00 34% 4 144,000.00 -24,000.00 591,600.00 552,000.00 159,600.00 120,000.00 60,000.00 372,000.00 591,600.00 432.000.00 552.000.00 REQUIRED: A. Prepare the following entries in the books of J and K: (1) adjusting, and (2) closing B. Prepare the following entries in the new set of books, as to the investments (or withdrawal, if any) made by the respective partners