ASSIGNMENT 02:The account balances in the books of Academia Partnership at the end of its first yearof operations on December 31, 2019 are as follows:756,000186,000Accounts receivableTodoroki, drawing600,000144,000Accounts payableTodoroki, capitalDenki, capitalCash489,000Denki, drawing54,000582,750Gen. expenses-others756,000Interest expense26,250Interest income21,000Notes payable360,000Notes receivable120,000Purchases4,920,000Purchase discount138,000Purch. returns & allow.99,000Sales5,100,000Sales salaries480,000Store furniture222,000Store supplies36,000Taxes and licenses36,000The data requiring adjustments as of December 31, 2019 and agreements relating todivision of partnership profit or loss are as follows:1. Inventories: merchandise, P1,406,000; supplies, P16,5002.Depreciation of store furniture, 10% a year. Additions to store furniture weremade on March 1 costing P54,0003. Accrued advertising, P9,5004. Prepaid taxes and licenses, P10,0005. Accrued taxes and licenses, P10,500Accrued interest on notes payable, P3,7506.7. Accrued interest on notes receivable, P6,0008. Uncollectible accounts receivable, P9,3009. Income tax, 30%10. Todoroki and Denki agree to divide earnings as follows:a. Interest at 10% on beginning capital balancesb. Salaries to the managing partner Todoroki of P100,000c. Remaining profit or loss to be divided equallyInstructions: On December 31, 2019, prepare an income statement, a statement ofchanges in partner's equity, and statement of financial position

Income Statement The purpose of preparing the income statement is to know the net income which are…

Answered: c. Remaining profit or loss to be…

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

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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