Problem #21 Preparation of Financial Statements The following are the adjusted account balances of Calamba and Santiago as at Dec. 31, 2019: P 677,820 545,070 462,870 18,790 132,310 612,000 326,400 753,150 224,880 149,390 35,000 1,320,420 299,000 7,350 5,407,160 43,050 Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Allowance for Uncollectible Accounts Cash Calamba, Capital Calamba, Drawing Equipment Transportation In General Expenses (control) Interest Expense Merchandise Inventory, December 31 Notes Payable Prepaid Insurance Purchases Purchases Discounts 259,600 499,600 244,800 7,155,000 375,750 385,880 Purchases Returns and Allowances Santiago, Capital Santiago, Drawing Sales Sales Returns and Allowances Selling Expenses (control) There were no changes in the partners' Capital accounts during the year. The merchandise inventory at the beginning of the year was P1,440,590. The partnership agreement provides for salary allowances of P330,000 for Calamba and P290.000 for Santiago. It also stipulates an interest allowance of 10% on invested capital at the beginning of the year, with the remainder of the profit to be divided equally. Required: 1. Prepare an income statement for the year. Show the division of profit. 2. Prepare a statement of changes in partners' equity for the year. 3. Prepare a statement of financial position at the end of the vear.
Problem #21 Preparation of Financial Statements The following are the adjusted account balances of Calamba and Santiago as at Dec. 31, 2019: P 677,820 545,070 462,870 18,790 132,310 612,000 326,400 753,150 224,880 149,390 35,000 1,320,420 299,000 7,350 5,407,160 43,050 Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Allowance for Uncollectible Accounts Cash Calamba, Capital Calamba, Drawing Equipment Transportation In General Expenses (control) Interest Expense Merchandise Inventory, December 31 Notes Payable Prepaid Insurance Purchases Purchases Discounts 259,600 499,600 244,800 7,155,000 375,750 385,880 Purchases Returns and Allowances Santiago, Capital Santiago, Drawing Sales Sales Returns and Allowances Selling Expenses (control) There were no changes in the partners' Capital accounts during the year. The merchandise inventory at the beginning of the year was P1,440,590. The partnership agreement provides for salary allowances of P330,000 for Calamba and P290.000 for Santiago. It also stipulates an interest allowance of 10% on invested capital at the beginning of the year, with the remainder of the profit to be divided equally. Required: 1. Prepare an income statement for the year. Show the division of profit. 2. Prepare a statement of changes in partners' equity for the year. 3. Prepare a statement of financial position at the end of the vear.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:SCORE:
SECTION:
PROFESSOR:
Problem #21
Preparation of Financial Statements
2019:
Accounts Payable
Accounts Receivable
Accumulated Depreciation-Equipment
Allowance for Uncollectible Accounts
Cash
Calamba, Capital
Calamba, Drawing
Equipment
Transportation In
General Expenses (control)
Interest Expense
Merchandise Inventory, December 31
Notes Payable
Prepaid Insurance
P 677,820
545,070
462,870
18,790
132,310
612,000
326,400
753,150
224,880
149,390
35,000
1,320,420
299,000
7,350
5,407,160
43,050
259,600
499,600
Purchases
Purchases Discounts
Purchases Returns and Allowances
Santiago, Capital
Santiago, Drawing
Sales
Sales Returns and Allowances
244,800
7,155,000
375,750
385,880
Selling Expenses (control)
There were no changes in the partners' Capital accounts during the year. The
merchandise inventory at the beginning of the year was P1,440,590. The partnership
agreement provides for salary allowances of P330,000 for Calamba and P290,000 for
Santiago. It also stipulates an interest allowance of 10% on invested capital at the
beginning of the year, with the remainder of the profit to be divided equally.
Required:
1. Prepare an income statement for the year. Show the division of profit.
2. Prepare a statement of changes in partners' equity for the year,
3. Prepare a statement of financial position at the end of the year.
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