Homework Help is Here – Start Your Trial Now!
Business
Accounting
Preparation of the Financial Statements Castor, Arenas, and Laurente, who are partners in the Super Manila Novelty Store, share profits in the ratio of 30:20:50. The adjusted trial balance on Dec 31, 2018 follows: Debits Credits Cash P110000 Accounts Receivable 80000 Merchandise Inventory 800000 Prepaid Rent 20000 Prepaid Insurance Accounts Payable Notes Payable Castor, Capital 15000 P50000 115000 125000 Arenas, Capital 275000 Laurente, Capital 110000 Sales 2500000 Cost of Sales 1450000 Salaries Expense 450000 Rent Expense 200000 Insurance Expense 30000 Utilities Expense 20000 Totals P3175000 P3175000 Required: 1. Prepare the 2018 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 2018. Assume the following additional information: Capital Accounts, Investments Withdrawals Jan 1, 2018 during the year during the year Castor P75000 P50000 Arenas 300000 25000 P50000 Laurente 150000 40000 3. Prepare the statement of financial position as at Dec 31, 2018.

Preparation of the Financial Statements Castor, Arenas, and Laurente, who are partners in the Super Manila Novelty Store, share profits in the ratio of 30:20:50. The adjusted trial balance on Dec 31, 2018 follows: Debits Credits Cash P110000 Accounts Receivable 80000 Merchandise Inventory 800000 Prepaid Rent 20000 Prepaid Insurance Accounts Payable Notes Payable Castor, Capital 15000 P50000 115000 125000 Arenas, Capital 275000 Laurente, Capital 110000 Sales 2500000 Cost of Sales 1450000 Salaries Expense 450000 Rent Expense 200000 Insurance Expense 30000 Utilities Expense 20000 Totals P3175000 P3175000 Required: 1. Prepare the 2018 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 2018. Assume the following additional information: Capital Accounts, Investments Withdrawals Jan 1, 2018 during the year during the year Castor P75000 P50000 Arenas 300000 25000 P50000 Laurente 150000 40000 3. Prepare the statement of financial position as at Dec 31, 2018.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

kindly answer the problem below.

Preparation of the Financial Statements Castor, Arenas, and Laurente, who are partners in the Super Manila Novelty Store, share profits in the ratio of 30:20:50. The adjusted trial balance on Dec 31, 2018 follows: Debits Credits Cash P110000 Accounts Receivable 80000 Merchandise Inventory 800000 Prepaid Rent 20000 Prepaid Insurance 15000 Accounts Payable Notes Payable P50000 115000 Castor, Capital 125000 Arenas, Capital 275000 Laurente, Capital 110000 Sales 2500000 Cost of Sales 1450000 Salaries Expense 450000 Rent Expense 200000 Insurance Expense 30000 Utilities Expense 20000 Totals P3175000 P3175000 Required: 1. Prepare the 2018 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 2018. Assume the following additional information: Capital Accounts, Investments Withdrawals Jan 1, 2018 during during the year the year Castor P75000 P50000 Arenas 300000 25000 P50000 Laurente 150000 40000 3. Prepare the statement of financial position as at Dec 31, 2018.
Transcribed Image Text:Preparation of the Financial Statements Castor, Arenas, and Laurente, who are partners in the Super Manila Novelty Store, share profits in the ratio of 30:20:50. The adjusted trial balance on Dec 31, 2018 follows: Debits Credits Cash P110000 Accounts Receivable 80000 Merchandise Inventory 800000 Prepaid Rent 20000 Prepaid Insurance 15000 Accounts Payable Notes Payable P50000 115000 Castor, Capital 125000 Arenas, Capital 275000 Laurente, Capital 110000 Sales 2500000 Cost of Sales 1450000 Salaries Expense 450000 Rent Expense 200000 Insurance Expense 30000 Utilities Expense 20000 Totals P3175000 P3175000 Required: 1. Prepare the 2018 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 2018. Assume the following additional information: Capital Accounts, Investments Withdrawals Jan 1, 2018 during during the year the year Castor P75000 P50000 Arenas 300000 25000 P50000 Laurente 150000 40000 3. Prepare the statement of financial position as at Dec 31, 2018.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Industry Specific Activities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS