Medina and Dalangin are fierce competitors who sell hunting equipment. They finallyMedina and Dalangin have decided to share profits or losses in the ratio of 60:40,agreement is reached between the two to begin operations as a partnership on Mar. 1,Problem #5Two Sole Proprietors Form a PartnershipAn2022.respectively.The statements of financial position of Medina and Dalangin as at Mar. 1, 2022 are.follows:DalanginMedinaP 30,000169,200Cash42,000389,200(22,400)461,600Accounts Receivable(14,400)300,8006,0004,000Allowance for Uncollectible AccountsMerchandise InventoryPrepaid RentOffice Supplies30,40040,000128,000(32,000)24,000LandBuildingAccumulated DepreciationOffice EquipmentAccumulated Depreciation62,000(13,200)Repair EquipmentAccumulated Depreciation(6,000)172,000(68,000)Total AssetsP1,158,800P544,400P 120,000Notes PayableAccounts PayableMortgage PayableMedina, CapitalDalangin, Capital170,000200,000668,800P111,600432,800Total Liabilities and Owners' EquityP1,158,800P544,400 ships: Basic Considerations and Formation -Medina's merchandise inventory is to be reduced by P105,200. The inventory ofThe name of the partnership will be Medina and Dalangin Hunting Gears. The partnershave agreed to effect the following adjustments:а.palangin will be increased by P7,200.The following are the fair market values of the various assets:MedinaDalanginLandP108,000BuildingOffice Equipment192,00016,000124,000P40,000Repair EquipmentOne-half of the notes pavable of Medina are personal notes. All other liabilitiesс.of the partners are assumed by the partnership.d. The prepaid rent in the books of Dalangin will be consumed by the partnership.Required:Prepare the journal entries to record the formation of the partnership.2001 0s

A partnership is the form of an entity where two or more persons carry on the business to earn…

Medina and Dalangin are fierce competitors who sell hunting equipment. They finally decided to join forces in order to increase their business and reduce costs. An Medina and Dalangin have decided to share profits or losses in the ratio of 60:40, agreement is reached between the two to begin operations as a partnership on Mar. 1, 2022. respectively. The statements of financial position of Medina and Dalangin as at Mar. 1, 2022 are. follows: Medina Dalangin P 30,000 169,200 (14,400) 300,800 6,000 4,000 Cash P 42,000 389,200 (22,400) 461,600 Accounts Receivable Allowance for Uncollectible Accounts Merchandise Inventory Prepaid Rent Office Supplies 30,400 40,000 128,000 (32,000) 24,000 (6,000) 172,000 (68,000) Land Building Accumulated Depreciation Office Equipment Accumulated Depreciation Repair Equipment Accumulated Depreciation 62,000 (13,200) Total Assets P1,158,800 P544,400 Notes Payable Accounts Payable P 120,000 170,000 200,000 668,800 P111,600 Mortgage Payable Medina, Capital Dalangin, Capital 432,800 Total Liabilities and Owners' Equity P1,158,800 P544,400

Medina and Dalangin are fierce competitors who sell hunting equipment. They finally decided to join forces in order to increase their business and reduce costs. An Medina and Dalangin have decided to share profits or losses in the ratio of 60:40, agreement is reached between the two to begin operations as a partnership on Mar. 1, 2022. respectively. The statements of financial position of Medina and Dalangin as at Mar. 1, 2022 are. follows: Medina Dalangin P 30,000 169,200 (14,400) 300,800 6,000 4,000 Cash P 42,000 389,200 (22,400) 461,600 Accounts Receivable Allowance for Uncollectible Accounts Merchandise Inventory Prepaid Rent Office Supplies 30,400 40,000 128,000 (32,000) 24,000 (6,000) 172,000 (68,000) Land Building Accumulated Depreciation Office Equipment Accumulated Depreciation Repair Equipment Accumulated Depreciation 62,000 (13,200) Total Assets P1,158,800 P544,400 Notes Payable Accounts Payable P 120,000 170,000 200,000 668,800 P111,600 Mortgage Payable Medina, Capital Dalangin, Capital 432,800 Total Liabilities and Owners' Equity P1,158,800 P544,400

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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Question

Medina and Dalangin are fierce competitors who sell hunting equipment. They finally
Medina and Dalangin have decided to share profits or losses in the ratio of 60:40,
agreement is reached between the two to begin operations as a partnership on Mar. 1,
Problem #5
Two Sole Proprietors Form a Partnership
An
2022.
respectively.
The statements of financial position of Medina and Dalangin as at Mar. 1, 2022 are.
follows:
Dalangin
Medina
P 30,000
169,200
Cash
42,000
389,200
(22,400)
461,600
Accounts Receivable
(14,400)
300,800
6,000
4,000
Allowance for Uncollectible Accounts
Merchandise Inventory
Prepaid Rent
Office Supplies
30,400
40,000
128,000
(32,000)
24,000
Land
Building
Accumulated Depreciation
Office Equipment
Accumulated Depreciation
62,000
(13,200)
Repair Equipment
Accumulated Depreciation
(6,000)
172,000
(68,000)
Total Assets
P1,158,800
P544,400
P 120,000
Notes Payable
Accounts Payable
Mortgage Payable
Medina, Capital
Dalangin, Capital
170,000
200,000
668,800
P111,600
432,800
Total Liabilities and Owners' Equity
P1,158,800
P544,400

ships: Basic Considerations and Formation -
Medina's merchandise inventory is to be reduced by P105,200. The inventory of
The name of the partnership will be Medina and Dalangin Hunting Gears. The partners
have agreed to effect the following adjustments:
а.
palangin will be increased by P7,200.
The following are the fair market values of the various assets:
Medina
Dalangin
Land
P108,000
Building
Office Equipment
192,000
16,000
124,000
P40,000
Repair Equipment
One-half of the notes pavable of Medina are personal notes. All other liabilities
с.
of the partners are assumed by the partnership.
d. The prepaid rent in the books of Dalangin will be consumed by the partnership.
Required:
Prepare the journal entries to record the formation of the partnership.
2001 0s

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