On May 1, 20x1, the statement of financial position of Juan and Pablo appear below: Pablo 44,708 1,135,780 520,204 Juan Cash Accounts receivable Inventories Land 22,000 469,072 240,070 1,206,000 856,534 69,578 7,200 2,634,004 Building Furniture and fixtures Other assets Total assets 100,690 4,000 2,041,832 Accounts payable Notes payable Juan, Čapital Pablo, Capital Total liabilities and equity 357,880 400,000 1,283,952 487,300 690,000 2,041,832 1,456,704 2,634,004 Juan and Pablo agreed to form a partnership contributing their respective assets and equities subject to the following adjustments: a. Accounts receivable of P40,000 in Juan's books and P70,000 in Pablo's books are uncollectible. b. Inventories of P11,000 and P13,400 are worthless in Juan's and Pablo's respective books. c. Other assets of P4,000 and P7,200 in Juan's and Pablo's respective books are to be written off. Required: 4. During the first year of operations, the partnership earned P650,000. After Pedro's admission, the profit and loss sharing ratio is 40:40:20 for Juan, Pablo, and Pedro, respectively, based on capital credits. Drawings were made in these amounts: Juan, P100,000; Pablo, P130,00o; Pedro – P56,000. What is the capital balance of Pedro after the first year?
On May 1, 20x1, the statement of financial position of Juan and Pablo appear below: Pablo 44,708 1,135,780 520,204 Juan Cash Accounts receivable Inventories Land 22,000 469,072 240,070 1,206,000 856,534 69,578 7,200 2,634,004 Building Furniture and fixtures Other assets Total assets 100,690 4,000 2,041,832 Accounts payable Notes payable Juan, Čapital Pablo, Capital Total liabilities and equity 357,880 400,000 1,283,952 487,300 690,000 2,041,832 1,456,704 2,634,004 Juan and Pablo agreed to form a partnership contributing their respective assets and equities subject to the following adjustments: a. Accounts receivable of P40,000 in Juan's books and P70,000 in Pablo's books are uncollectible. b. Inventories of P11,000 and P13,400 are worthless in Juan's and Pablo's respective books. c. Other assets of P4,000 and P7,200 in Juan's and Pablo's respective books are to be written off. Required: 4. During the first year of operations, the partnership earned P650,000. After Pedro's admission, the profit and loss sharing ratio is 40:40:20 for Juan, Pablo, and Pedro, respectively, based on capital credits. Drawings were made in these amounts: Juan, P100,000; Pablo, P130,00o; Pedro – P56,000. What is the capital balance of Pedro after the first year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On May 1, 20x1, the statement of financial position of Juan and Pablo appear below:
Juan
Pablo
44,708
1,135,780
520,204
Cash
Accounts receivable
22,000
469,072
240,070
1,206,000
Inventories
Land
Building
Furniture and fixtures
100,690
4,000
2,041,832
856,534
69,578
7,200
2,634,004
Other assets
Total assets
Accounts payable
Notes payable
Juan, Capital
Pablo, Capital
Total liabilities and equity
357,880
400,000
1,283,952
487,300
690,000
2,041,832
1,456,704
2,634,004
Juan and Pablo agreed to form a partnership contributing their respective assets and equities subject to the
following adjustments:
a. Accounts receivable of P40,000 in Juan's books and P70,000 in Pablo's books are uncollectible.
b. Inventories of P11,000 and P13,400 are worthless in Juan's and Pablo's respective books.
c. Other assets of P4,000 and P7,200 in Juan's and Pablo's respective books are to be written off.
Required:
4. During the first year of operations, the partnership earned P650,000. After Pedro's admission, the profit
and loss sharing ratio is 40:40:20 for Juan, Pablo, and Pedro, respectively, based on capital credits.
Drawings were made in these amounts: Juan, P100,000; Pablo, P130,000; Pedro – P56,000. What is
the capital balance of Pedro after the first year?
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