E PartnershipOperations Partnership Operations Activity 3 Stardew Partnership Cherry, Apple and Lemon who are partners in the Stardew Store, share the profits in the ratio of 30:20:50, respectively. The adjusted trial balance on Dec. 31, 2020 follows: Debits Credits Cash P 110,000 Accounts Receivable 80,000 Merchandise Inventory Prepaid Rent Prepaid Insurance Accounts Payable Notes Payable Cherry, Capital Apple, Capital Lemon, Capital 800,000 20,000 15,000 P 50,000 115,000 125,000 275,000 110,000 Sales 2,500,000 Cost of Sales 1,450,000 Salaries Expense Rent Expense Insurance Expense Utilities Expense 450,000 200,000 30,000 20,000 P3,175.000 P 3,175,000 Required: 1. Prepare the 2020 statement of comprehensive income. Show the division of profit at the lower portion of the statement. 2. Prepare the statement of changes in partners' equity for 2020. Assume the following additional information: Capital Accounts, Jan. 1, 2020 Investments during the year Withdrawals during the year P 75,000 P 50,000 Cherry Apple P 50,000 300,000 25,000 Lemon 150,000 40,000 3. Prepare the statement of financial position as at Dec. 31, 2020. ...
E PartnershipOperations Partnership Operations Activity 3 Stardew Partnership Cherry, Apple and Lemon who are partners in the Stardew Store, share the profits in the ratio of 30:20:50, respectively. The adjusted trial balance on Dec. 31, 2020 follows: Debits Credits Cash P 110,000 Accounts Receivable 80,000 Merchandise Inventory Prepaid Rent Prepaid Insurance Accounts Payable Notes Payable Cherry, Capital Apple, Capital Lemon, Capital 800,000 20,000 15,000 P 50,000 115,000 125,000 275,000 110,000 Sales 2,500,000 Cost of Sales 1,450,000 Salaries Expense Rent Expense Insurance Expense Utilities Expense 450,000 200,000 30,000 20,000 P3,175.000 P 3,175,000 Required: 1. Prepare the 2020 statement of comprehensive income. Show the division of profit at the lower portion of the statement. 2. Prepare the statement of changes in partners' equity for 2020. Assume the following additional information: Capital Accounts, Jan. 1, 2020 Investments during the year Withdrawals during the year P 75,000 P 50,000 Cherry Apple P 50,000 300,000 25,000 Lemon 150,000 40,000 3. Prepare the statement of financial position as at Dec. 31, 2020. ...
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Hi! Can you please answer this with explanation/solution? Thank you. ( much better if not hand-written so that I can understand the answer easily.
Transcribed Image Text:4:58
O * ? l 41%
E PartnershipOperations
Partnership Operations Activity 3
Stardew Partnership
Cherry, Apple and Lemon who are partners in the Stardew Store, share the profits in the ratio of 30:20:50,
respectively. The adjusted trial balance on Dec. 31, 2020 follows:
Debits
Credits
Cash
P 110,000
Accounts Receivable
80,000
Merchandise Inventory
Prepaid Rent
800,000
20,000
Prepaid Insurance
15,000
Accounts Payable
P 50,000
Notes Payable
Cherry, Capital
Apple, Capital
Lemon, Capital
115,000
125,000
275,000
110,000
Sales
2,500,000
Cost of Sales
1,450,000
Salaries Expense
450,000
Rent Expense
200,000
Insurance Expense
Utililties Expense
30,000
20.000
P3,175,000
P3,175.000
Required:
1. Prepare the 2020 statement of comprehensive income. Show the division of profit at the lower portion of the
statement.
2. Prepare the statement of changes in partners' equity for 2020. Assume the following additional information:
Capital Accounts, Jan. 1, 2020 Investments during the year Withdrawals during the year
Cherry
P 75.000
P 50,000
Аple
300,000
25,000
P 50,000
Lemon
150,000
40,000
3. Prepare the statement of financial position as at Dec. 31, 2020.
II
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education