partnership. Their statements of financial position on Mar. 1, before adjustments, On Mar. 1, 2016, Sarabia and Abad decided to combine their businesses and for showed the following: Sarabia Abad P 9,000 18,500 30,000 30,000 11,500 6,375 P105,375 P 3,750 13,500 19,500 Cash Accounts receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses 9,000 2,750 3,000 P51,500 Total P 45,750 59,625 P105,375 Accounts Payable P18,000 33,500 P51,500 Capital Total They agreed to have the following items recordėd in their books: Provide 2% allowance for doubtful accounts. Sarabia's furniture and fixtures should be P31,000, while Abad's office equipment is under-depreciated by P250. Rent expense incurred previously by Sarabia was not yet recorded amounting to P1,000, while salary expense incurred by Abad was not also recorded amounting .1. 2. 3. to P800. 4. The fair market values of inventory amounted to: For Sarabia P29,500
partnership. Their statements of financial position on Mar. 1, before adjustments, On Mar. 1, 2016, Sarabia and Abad decided to combine their businesses and for showed the following: Sarabia Abad P 9,000 18,500 30,000 30,000 11,500 6,375 P105,375 P 3,750 13,500 19,500 Cash Accounts receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses 9,000 2,750 3,000 P51,500 Total P 45,750 59,625 P105,375 Accounts Payable P18,000 33,500 P51,500 Capital Total They agreed to have the following items recordėd in their books: Provide 2% allowance for doubtful accounts. Sarabia's furniture and fixtures should be P31,000, while Abad's office equipment is under-depreciated by P250. Rent expense incurred previously by Sarabia was not yet recorded amounting to P1,000, while salary expense incurred by Abad was not also recorded amounting .1. 2. 3. to P800. 4. The fair market values of inventory amounted to: For Sarabia P29,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Compute the bet (debit) credit adjustment for sarabia and abad
Transcribed Image Text:partnership. Their statements of financial position on Mar. 1, before adjustments, .
2. On Mar. 1, 2016, Sarabia and Abad decided to combine their businesses and for
showed the following:
Sarabia
Abad
P 9,000
18,500
30,000
30,000
11,500
P 3,750
13,500
19,500
9,000
Cash
Accounts receivable
Inventories
Furniture and Fixtures (net)
Office Equipment (net)
Prepaid Expenses
2,750
6,375
P105,375
3,000
P51,500
Total
P 45,750
59,625
P105,375
P18,000
Accounts Payable
Capital
33,500
P51,500
Total
They agreed to have the following items recordéd in their books:
Provide 2% allowance for doubtful accounts.
Sarabia's furniture and fixtures should be P31,000, while Abad's office
1.
2.
equipment is under-depreciated by P250.
Rent expense incurred previously by Sarabia was not yet recorded amounting to
P1,000, while salary expense incurred by Abad was not also recorded amounting
3.
to P800.
The fair market values of inventory amounted to:
For Sarabia
P29,500
For Abad
21,000
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