The following transactions occurred in the formation of Enercon Service Makers partnership: 1. Perez made a cash investment of P500,000. 2. Tiu invested equipment costing P800,000 with a current market value of P700,000 with an outstanding mortgage of P200,000 with ABC bank. The partnership will assume the mortgage. 3. Ruiz will be admitted as the manager with 20% share in the profit. 4. The partnership earned service fee of P400,000 and paid operating expenses totaling P150,000. 5. Perez and Tiu withdrew P 20,000 each while Ruiz was paid salary of P30,000. Required: a. Prepare journal entries to record the above transactions b. Prepare the Statement of Partners' Equity; the Net Income is to be divided as follows: 20% to Ruiz and the Balance divided equally between Perez & Tiu.
The following transactions occurred in the formation of Enercon Service Makers partnership: 1. Perez made a cash investment of P500,000. 2. Tiu invested equipment costing P800,000 with a current market value of P700,000 with an outstanding mortgage of P200,000 with ABC bank. The partnership will assume the mortgage. 3. Ruiz will be admitted as the manager with 20% share in the profit. 4. The partnership earned service fee of P400,000 and paid operating expenses totaling P150,000. 5. Perez and Tiu withdrew P 20,000 each while Ruiz was paid salary of P30,000. Required: a. Prepare journal entries to record the above transactions b. Prepare the Statement of Partners' Equity; the Net Income is to be divided as follows: 20% to Ruiz and the Balance divided equally between Perez & Tiu.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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NOTE: PLEASE PUT IT ON EXCEL THANK YOU
![The following transactions occurred in the formation of Enercon
Service Makers partnership:
1. Perez made a cash investment of P500,000.
2. Tiu invested equipment costing P800,000 with a current
market value of P700,000 with an outstanding mortgage of
P200,000 with ABC bank. The partnership will assume the
mortgage.
3. Ruiz will be admitted as the manager with 20% share in the
profit.
4. The partnership earned service fee of P400,000 and paid
operating expenses totaling P150,000.
5. Perez and Tiu withdrew P 20,000 each while Ruiz was paid
salary of P30,000.
Required:
a. Prepare journal entries to record the above transactions
b. Prepare the Statement of Partners' Equity; the Net Income is
to be divided as follows: 20% to Ruiz and the Balance divided
equally between Perez & Tiu.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F12e7e284-dd39-4e77-918a-67afb48d1385%2F65246de1-2b67-4070-a8b3-ce5029850402%2Ff6nke1a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following transactions occurred in the formation of Enercon
Service Makers partnership:
1. Perez made a cash investment of P500,000.
2. Tiu invested equipment costing P800,000 with a current
market value of P700,000 with an outstanding mortgage of
P200,000 with ABC bank. The partnership will assume the
mortgage.
3. Ruiz will be admitted as the manager with 20% share in the
profit.
4. The partnership earned service fee of P400,000 and paid
operating expenses totaling P150,000.
5. Perez and Tiu withdrew P 20,000 each while Ruiz was paid
salary of P30,000.
Required:
a. Prepare journal entries to record the above transactions
b. Prepare the Statement of Partners' Equity; the Net Income is
to be divided as follows: 20% to Ruiz and the Balance divided
equally between Perez & Tiu.
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