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2. Merchandise should be revalued at 90% of the book value to provide for obsolence 4. Each of the prospective partner should level off their cash contribution to Chopter 16 They agreed to comply with the following adjustments: 1. Accounts Recelvable should have the following probability of collection: Espocia, P90%; Beringuel, 95%, and Alemanza, 98%. 3. Equipment should have the carryling values as follows: Espocia, P165,000; Beringuel, P150,000 and Alemanza, P180,000. 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. 16 -5 John Mark Cadua who has been in business for a quite long time has decided to venture in partnership business with Michael Auditor. The Statement of Financial Position of J. .Cadua prior to the inception of the partnership revealed the following balances: P 85,000 Cash Accounts Receivable Allowance for Doubtful Accounts 60,000 4,000 120,000 150,000 30,000 Merchandise Equipment Acc. Depreciation-Equipment Accounts Payable J. Cadua, Capital 80,000 ? As agreed, Auditor will contribute cash equal to one-half (1/2) of the capital balance of Cadua after taking into account the following adjustments: a. The allowance for doubtful accounts is over set-up by P3,000. b. Merchandise should be valued at P105,000 due to obsolescence. c. The equipment is under depreciated by P15,000. d. Accounts Payable was overstated by P4,000 due to recording of an expense. Required: 1. Compute the capital account balance of Cadua prior to partnership formation. 414

2. Merchandise should be revalued at 90% of the book value to provide for obsolence 4. Each of the prospective partner should level off their cash contribution to Chopter 16 They agreed to comply with the following adjustments: 1. Accounts Recelvable should have the following probability of collection: Espocia, P90%; Beringuel, 95%, and Alemanza, 98%. 3. Equipment should have the carryling values as follows: Espocia, P165,000; Beringuel, P150,000 and Alemanza, P180,000. 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. 16 -5 John Mark Cadua who has been in business for a quite long time has decided to venture in partnership business with Michael Auditor. The Statement of Financial Position of J. .Cadua prior to the inception of the partnership revealed the following balances: P 85,000 Cash Accounts Receivable Allowance for Doubtful Accounts 60,000 4,000 120,000 150,000 30,000 Merchandise Equipment Acc. Depreciation-Equipment Accounts Payable J. Cadua, Capital 80,000 ? As agreed, Auditor will contribute cash equal to one-half (1/2) of the capital balance of Cadua after taking into account the following adjustments: a. The allowance for doubtful accounts is over set-up by P3,000. b. Merchandise should be valued at P105,000 due to obsolescence. c. The equipment is under depreciated by P15,000. d. Accounts Payable was overstated by P4,000 due to recording of an expense. Required: 1. Compute the capital account balance of Cadua prior to partnership formation. 414

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Merchandise should be revalued at 90% of the book value to provide for obsolence 4. Each of the prospective partner should level off their cash contribution to Chopter 16 They agreed to comply with the following adjustments: 1. Accounts Recelvable should have the following probability of collection: Espocia, P90%; Beringuel, 95%, and Alemanza, 98%. 3. Equipment should have the carryling values as follows: Espocia, P165,000; Beringuel, P150,000 and Alemanza, P180,000. 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. 16 -5 John Mark Cadua who has been in business for a quite long time has decided to venture in partnership business with Michael Auditor. The Statement of Financial Position of J. .Cadua prior to the inception of the partnership revealed the following balances: P 85,000 Cash Accounts Receivable Allowance for Doubtful Accounts 60,000 4,000 120,000 150,000 30,000 Merchandise Equipment Acc. Depreciation-Equipment Accounts Payable J. Cadua, Capital 80,000 ? As agreed, Auditor will contribute cash equal to one-half (1/2) of the capital balance of Cadua after taking into account the following adjustments: a. The allowance for doubtful accounts is over set-up by P3,000. b. Merchandise should be valued at P105,000 due to obsolescence. c. The equipment is under depreciated by P15,000. d. Accounts Payable was overstated by P4,000 due to recording of an expense. Required: 1. Compute the capital account balance of Cadua prior to partnership formation. 414
Transcribed Image Text:2. Merchandise should be revalued at 90% of the book value to provide for obsolence 4. Each of the prospective partner should level off their cash contribution to Chopter 16 They agreed to comply with the following adjustments: 1. Accounts Recelvable should have the following probability of collection: Espocia, P90%; Beringuel, 95%, and Alemanza, 98%. 3. Equipment should have the carryling values as follows: Espocia, P165,000; Beringuel, P150,000 and Alemanza, P180,000. 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. 16 -5 John Mark Cadua who has been in business for a quite long time has decided to venture in partnership business with Michael Auditor. The Statement of Financial Position of J. .Cadua prior to the inception of the partnership revealed the following balances: P 85,000 Cash Accounts Receivable Allowance for Doubtful Accounts 60,000 4,000 120,000 150,000 30,000 Merchandise Equipment Acc. Depreciation-Equipment Accounts Payable J. Cadua, Capital 80,000 ? As agreed, Auditor will contribute cash equal to one-half (1/2) of the capital balance of Cadua after taking into account the following adjustments: a. The allowance for doubtful accounts is over set-up by P3,000. b. Merchandise should be valued at P105,000 due to obsolescence. c. The equipment is under depreciated by P15,000. d. Accounts Payable was overstated by P4,000 due to recording of an expense. Required: 1. Compute the capital account balance of Cadua prior to partnership formation. 414
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