The Statement of Financial Position of Pedro Castro on October 1, 2015 before accepting Pablo Bunag as his partner isshown below:Pedro CastroStatement of Financial PositionOctober 1, 2015ASSETSCashP 6,000.00Notes Receivable3,000.00Accounts ReceivableP 24,000.00Less: Allowance for Bad Debts1,000.0023,000.00Merchanside Inventory8,000.00Furniture and Fixtures6,000.00Less: Accumulated Depreciation600.005,400.00Total AssetsP 45,400.00LIABILITIES AND OWNERS EQUITYLiabilitiesP 4,000.00Notes PayableAccounts PayableOwner's EquityPedro Castro, CapitalTotal Liabilities and Capital10,000.00 P 14,000.0031,400.00P 45,400.00 Pablo Bunag offers to invest cash to give him a capital credit equal to one-half (1/2) of Pedro Castro's capital after givingeffect to the adjustment of the items below. Pedro Castro accepts the offer.a. The merchandise is to valued at P7,400.b. The accounts receivable is estimated to be 95% realizable.c. Interest accrued on the notes receivable enumerated below is to reflected.P1,000, 6% dated July 1, 2015P2,000, 6% dated August 1, 2015d. Interest accrued at 5% annually from April 1, 2015 on the notes payable is to be recorded.e. The furniture and fixtures is to be valued at P4,600.f. Office supplies on hand which have been charged to expense in the past amounted to P400. These are still to beused by the partnership.REQUIRED:1. Prepare the necessary journal entries in all books to record the formation of partnership if:a. The books of Pedro Castro will be retained by the partnership.b. A new set of books will be used.2. Prepare the statement of financial position of the partnership.

The Statement of Financial Position of Pedro Castro on October 1, 2015 before accepting Pablo Bunag as his partner is shown below: Pedro Castro Statement of Financial Position October 1, 2015 ASSETS Cash P 6,000.00 Notes Receivable 3,000.00 Accounts Receivable P 24,000.00 Less: Allowance for Bad Debts 1,000.00 23,000.00 Merchanside Inventory 8,000.00 Furniture and Fixtures 6,000.00 Less: Accumulated Depreciation 600.00 5,400.00 Total Assets P 45,400.00 LIABILITIES AND OWNERS EQUITY Liabilities P 4,000.00 Notes Payable Accounts Payable Owner's Equity Pedro Castro, Capital Total Liabilities and Capital 10,000.00 P 14,000.00 31,400.00 P 45,400.00

The Statement of Financial Position of Pedro Castro on October 1, 2015 before accepting Pablo Bunag as his partner is shown below: Pedro Castro Statement of Financial Position October 1, 2015 ASSETS Cash P 6,000.00 Notes Receivable 3,000.00 Accounts Receivable P 24,000.00 Less: Allowance for Bad Debts 1,000.00 23,000.00 Merchanside Inventory 8,000.00 Furniture and Fixtures 6,000.00 Less: Accumulated Depreciation 600.00 5,400.00 Total Assets P 45,400.00 LIABILITIES AND OWNERS EQUITY Liabilities P 4,000.00 Notes Payable Accounts Payable Owner's Equity Pedro Castro, Capital Total Liabilities and Capital 10,000.00 P 14,000.00 31,400.00 P 45,400.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The following figures were extracted from the books of E Wallis as at 30 June 2019: What is the…

A: Current assets: Current assets are all those assets which are expected to be sold or used as a…

Q: How does the owner finance the business in terms of debt and equity?

A: Capital structure refers to the blend that is used by an organization to finance its overall…

Q: David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: On June 30, Year 3, Rundle Company's total current assets were $497,500 and its total current…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: 4. On the 1 January 2019 Sue Sepik commenced in business. During the year ended 31 December 2019 the…

A: Profit and Loss Account When a company prepares a statement for identifying the value of profits…

Q: The partners in Blossom Company decide to liquidate the firm when the balance sheet shows the…

A: Step 1:Journal Entries:TransactionsAccount title and explanationDebitCredit1Cash$54,750 Allowance…

Q: Crane Corporation purchased debt investments for $57,000 on January 1, 2022. On July 1, 2022. Crane…

A: As per real account rule, we should bedit what comes in and credit what goes out. As per nominal…

Q: The following figures were extracted from the books of E Wallis as at 30 June 2019: What is the…

A: The following computations are done for E Wallis for the year 2019.

Q: What is the long term liabilties of the business? £ Delivery Van 14,000 Inventory 12,560…

A: Long-term liabilities can be defined as the company’s financial obligations which are due for more…

Q: wnership of an apart

A: The balance sheet is prepared as,

Q: The following transactions occurred during June 2020 for Rashid Est. June 1 Invested BD64,000 cash…

A: Journaling is the process of recording business transactions in accounting records. This activity…

Q: he following figures were extracted from the books of E Wallis as at 30 June 2019: what is the…

A: Particulars Amount Inventory 12,560 Trade Receivables 43,800 Provision for doubtful debts…

Question

The Statement of Financial Position of Pedro Castro on October 1, 2015 before accepting Pablo Bunag as his partner is
shown below:
Pedro Castro
Statement of Financial Position
October 1, 2015
ASSETS
Cash
P 6,000.00
Notes Receivable
3,000.00
Accounts Receivable
P 24,000.00
Less: Allowance for Bad Debts
1,000.00
23,000.00
Merchanside Inventory
8,000.00
Furniture and Fixtures
6,000.00
Less: Accumulated Depreciation
600.00
5,400.00
Total Assets
P 45,400.00
LIABILITIES AND OWNERS EQUITY
Liabilities
P 4,000.00
Notes Payable
Accounts Payable
Owner's Equity
Pedro Castro, Capital
Total Liabilities and Capital
10,000.00 P 14,000.00
31,400.00
P 45,400.00

Pablo Bunag offers to invest cash to give him a capital credit equal to one-half (1/2) of Pedro Castro's capital after giving
effect to the adjustment of the items below. Pedro Castro accepts the offer.
a. The merchandise is to valued at P7,400.
b. The accounts receivable is estimated to be 95% realizable.
c. Interest accrued on the notes receivable enumerated below is to reflected.
P1,000, 6% dated July 1, 2015
P2,000, 6% dated August 1, 2015
d. Interest accrued at 5% annually from April 1, 2015 on the notes payable is to be recorded.
e. The furniture and fixtures is to be valued at P4,600.
f. Office supplies on hand which have been charged to expense in the past amounted to P400. These are still to be
used by the partnership.
REQUIRED:
1. Prepare the necessary journal entries in all books to record the formation of partnership if:
a. The books of Pedro Castro will be retained by the partnership.
b. A new set of books will be used.
2. Prepare the statement of financial position of the partnership.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.

Similar questions

Checking account $750 Automabile (ourent vale) S,950 House (ourrent value) $92,500 Savings account Investments $1,350 $4.000 $107,550 Total Assets Liabilities Credit card debt $3,800 $15,750 Student loans Personal loans $975 Total Liabilities $20,525 Besed on the information in the table, what is Emily's net worth? OA S107,550 OB S7,025 .C. s20,525
please skip this if you already answered or get downvote.
Question # 01:A business owned by Cristiano Ronaldo was short of cash and Ronaldo therefore decided to form a Partnership with Lionel Messi, who was able to contribute cash to the new partnership. The assets contributed by Ronaldo appeared as follows in the balance sheet of her business: cash $600: account receivable, $34900, with an allowance for doubtful accounts of $960: inventory $45600: and store equipment, $21600. Ronaldo had recorded depreciation of $1800 during his use of the store equipment in his sole proprietorship.Ronaldo and Messi agreed that the allowance for Doubtful accounts was in adequate and should be $1800.They also agreed that a fair value for the inventory was its replacement cost of $54000 and that the fair value of the store equipment was $19000.You are required to open the partnership accounts by making a general journal entry to record the investment by Ronaldo?
Mr Gugu and Lethu are members of Gugulethu CC. The bookkeeper attempted to prepare the financial statements of the entity however, he lacked the technical knowhow of the task. The following information is extracted from the workings of the bookkeeper and relates to the close cooperation on 28 February 2021, the end of the financial year: R Vehicles 780 000 Land and buildings 1 210 000 Long-term loan 520 000 Inventory (1 March 2020) 52 000 Trade receivables control 150 000 Trade payables control 84 790 Purchases 761 000 Purchases returns 5 100 Settlement discount granted 2 800 Freight on sales 12 300 Interest on long-term loan 43 875 Sales returns 2 300 Insurance expense 48 000 Settlement discount received 850 Allowance for credit…
nku.3
Ll.135.
Please answer competely and properly
Procedures: 1. Analyze the following business transactions below. For the month of December 2022, Mr. Mira Shikigami had the following transactions: Dec. Mr. Mira Shikigami invested P1,200,000 to start the business, Shikigami Accounting Firm 1 1 The firm obtained a note from Solar Bank amounting to P300,000. The note bears a 6% annual interest payable every June 1 of the following year. The principal is payable in two (2) equal annual installments. 1 The firm paid P15,000 for the necessary permits and licenses for its operation. 1 The firm paid P180,000 for the annual rent of the office space. The lease contract will expire on June 1 of the following year and will be renewed yearly. 3 The firm rendered service to Kyubi Realties, Inc. worth P250,000 on credit. 3 The firm purchased supplies worth P50,000. 9 The firm purchased a laptop in cash, P50,000. The laptop has an estimated useful life of three (3) years with no residual value. The company treats purchases during the first half of…
a. P3,440,900 b. P3,250,000 C. P3,146,900 D. P3,059,100
Please help me
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2020: Cash Equipment Accum.Deprec.Equipment AccountsPayable NotesPayable DavidWallace,Capital OlenaDunn,Capital DannyLin,Capital Account balances December 31, 2020 $ 25,600 $ 170,000 $ 95,000 $ 7,600 $ 18,000 $ 37,000 $ 20,000 $ 18,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $62,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.Required:1. Complete the schedule. (Negative answers should be indicated by a minus sign.) 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash).
Question Carlene Johnson is the Accountant in the Finance Department at Fairway Trading Limited who manages the company Accounts Receivables. She was given the following information by the Finance Manager which was extracted from the debtor's ledger as at December 31, 2022. Category of Total value of Customers Sales To Customer $ Keith Green Karen White June Hinds John Wayne 180,0000 240,000 390,000 380,000 Paul Gayle 346,000 Date of Sales December 16, 30 days 2021 December 10, 60 days 2021 November 15, 2022 30 days June 26, 2022 30 days 30 days August 25, 2022 Terms Percentage provision to be created Date of Last Payment on A/C January 15, 2022 February 14, 2022 December 20, 2022 October 24, 2022 September 24, 2022 Total Amount Paid to Date on Account S 90,500 180,000 170,000 295,000 235,000 The Accountant decided that she would age the debt outstanding in the following category and the percentage to be provided for bad debt in the amount stated beside each category accordingly. Aging…