P 800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![On September 30, 2019, R.Rob and J.Jon, CPAS decided to form a partnership wherein they will participate in the profits in
the ratio of 40% and 60%, respectively. Their balances are as follows:
Rob Company
Statement of Financial Position
September 30,2019
Assets
Cash
Accounts Receivable
Less:Allowance for Uncollectible accounts
P 80,00
P 800,000
80,000
P 250,000
50.000
720,000
Equipment
Less:Accumulated Depreciation
Total Assets
200,000
P 1,000,000
Liabilities and Capital
Accounts payable
R.Rob, Capital
Total Liabilities and Capital
P 400,000
600,000
P 1,000,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F817e0521-e65a-488a-a12f-c7c5f44fa976%2F50caa67f-72f4-4b3e-a6d2-6ed2d53036db%2F08b4ien_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On September 30, 2019, R.Rob and J.Jon, CPAS decided to form a partnership wherein they will participate in the profits in
the ratio of 40% and 60%, respectively. Their balances are as follows:
Rob Company
Statement of Financial Position
September 30,2019
Assets
Cash
Accounts Receivable
Less:Allowance for Uncollectible accounts
P 80,00
P 800,000
80,000
P 250,000
50.000
720,000
Equipment
Less:Accumulated Depreciation
Total Assets
200,000
P 1,000,000
Liabilities and Capital
Accounts payable
R.Rob, Capital
Total Liabilities and Capital
P 400,000
600,000
P 1,000,000
![Jon Company
Statement of Financial Position
September 30,2019
Assets
Cash
Accounts Receivable
Less:Allowance for Uncollectible accounts
Equipment
Less: Accumulated Depreciation
Total Assets
P 350,000
P 300,000
30,000
P 450,000
90.000
270,000
360,000
P 980,000
Liabilities and Capital
Accounts payable
Jon, Capital
Total Liabilities and Capital
P 290,000
690.000
P 980,000
Conditions agreed upon before the formation are as follows:
The accounts receivable of both parties are estimated to be 15% uncollectible.
The equipment of R.Rob should be valued at P 180,000.
The equipment of J. Jon should be valued at P 375,000.
Prepaid expenses of P 20,000 and accrued expenses of P 25,000 are to be taken up in the books of J.Jon.
The new capital of the partnership is based on the adjusted capital balance of J.Jon so that R. Rob may either withdraw
or contribute additional cash in order to make the partner's capital balance proportionate to their profits or loss ratio.
This is not recorded in the books of R.Rob.
REQUIRED:
a.) Prepare journal entries
respective books of accounts.
b.) Prepare the required journal entries in the new partneship books, to record the investment of the partners.
the boo
of
and J.Jon to record the adjustments of assets and
and the closing of their](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F817e0521-e65a-488a-a12f-c7c5f44fa976%2F50caa67f-72f4-4b3e-a6d2-6ed2d53036db%2Fed7ggfp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jon Company
Statement of Financial Position
September 30,2019
Assets
Cash
Accounts Receivable
Less:Allowance for Uncollectible accounts
Equipment
Less: Accumulated Depreciation
Total Assets
P 350,000
P 300,000
30,000
P 450,000
90.000
270,000
360,000
P 980,000
Liabilities and Capital
Accounts payable
Jon, Capital
Total Liabilities and Capital
P 290,000
690.000
P 980,000
Conditions agreed upon before the formation are as follows:
The accounts receivable of both parties are estimated to be 15% uncollectible.
The equipment of R.Rob should be valued at P 180,000.
The equipment of J. Jon should be valued at P 375,000.
Prepaid expenses of P 20,000 and accrued expenses of P 25,000 are to be taken up in the books of J.Jon.
The new capital of the partnership is based on the adjusted capital balance of J.Jon so that R. Rob may either withdraw
or contribute additional cash in order to make the partner's capital balance proportionate to their profits or loss ratio.
This is not recorded in the books of R.Rob.
REQUIRED:
a.) Prepare journal entries
respective books of accounts.
b.) Prepare the required journal entries in the new partneship books, to record the investment of the partners.
the boo
of
and J.Jon to record the adjustments of assets and
and the closing of their
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