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том STATEMENT OF FINANCIAL POSITION 30-Jun-20 ASSETS Current Assets Cash P 48,600.00 Accounts Receivable P 60,000.00 Allowance for doubtful accounts 3,600.00 56,400.00 Merchandise Inventory Supplies Inventory 64,200.00 4,800.00 Total Current Assets 174,000.00 Property and Equipment Furniture and fixtures P 36,000.00 Less: Accumulated Depreciation 16,800.00 19,200.00 TOTAL ASSETS 193,200.00 LIABILITIES AND CAPITAL Current Liabilities P 24,000.00 Accounts Payable Notes Payable 48,000.00 Total Current Liabilities 72,000.00 Capital Tom, Capital 121,200.00 TOTAL LIABILITIES AND CAPITAL 193,200.00

том STATEMENT OF FINANCIAL POSITION 30-Jun-20 ASSETS Current Assets Cash P 48,600.00 Accounts Receivable P 60,000.00 Allowance for doubtful accounts 3,600.00 56,400.00 Merchandise Inventory Supplies Inventory 64,200.00 4,800.00 Total Current Assets 174,000.00 Property and Equipment Furniture and fixtures P 36,000.00 Less: Accumulated Depreciation 16,800.00 19,200.00 TOTAL ASSETS 193,200.00 LIABILITIES AND CAPITAL Current Liabilities P 24,000.00 Accounts Payable Notes Payable 48,000.00 Total Current Liabilities 72,000.00 Capital Tom, Capital 121,200.00 TOTAL LIABILITIES AND CAPITAL 193,200.00

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...
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Hi, below are the things that need to be adjusted in Tom and Jerry's business. Please apply the adjustments in the statement of financial position. Just before the partnership formation, the financial position of Tom’s and Jerry’s businesses are in the pictures attached. 

 

Tom’s business:

  1. Bad accounts of P3,000 are to be written off. A 4% allowance for doubtful accounts is to be recognized on the remaining accounts receivable after write off.
  2. Merchandise inventory ‘s present market value is P70,800
  3. Furniture’s and Fixtures account should be adjusted to replacement value of P45,000.  After adjustment to replacement value, the asset should be considered as 50% depreciated.

 

Jerry’s business:

  1.  Only 10% allowance for doubtful accounts is to be recognized on the outstanding accounts receivable as of June 30, 2020.
  2. The office equipment should be depreciated further by 8%
  3. The fair market value of the merchandise is P46,450.
JERRY STATEMENT OF FINANCIAL POSITION 30-Jun-20 ASSETS Current Assets Cash P 13,400.00 Accounts Receivable P 24,000.00 Allowance for doubtful accounts 2,700.00 21,300.00 Merchandise Inventory 60,500.00 Total Current Assets 95,200.00 Property and Equipment P 40,500.00 Office Equipment Less: Accumulated Depreciation 7,500.00 33,000.00 TOTAL ASSETS 128,200.00 LIABILITIES AND CAPITAL Current Liabilities Accounts Payable P 25,000.00 Notes Payable 15,000.00 Total Current Liabilities P 40,000.00 Capital Jerry, Capital 88,200.00 TOTAL LIABILITIES AND CAPITAL 128,200.00
Transcribed Image Text:JERRY STATEMENT OF FINANCIAL POSITION 30-Jun-20 ASSETS Current Assets Cash P 13,400.00 Accounts Receivable P 24,000.00 Allowance for doubtful accounts 2,700.00 21,300.00 Merchandise Inventory 60,500.00 Total Current Assets 95,200.00 Property and Equipment P 40,500.00 Office Equipment Less: Accumulated Depreciation 7,500.00 33,000.00 TOTAL ASSETS 128,200.00 LIABILITIES AND CAPITAL Current Liabilities Accounts Payable P 25,000.00 Notes Payable 15,000.00 Total Current Liabilities P 40,000.00 Capital Jerry, Capital 88,200.00 TOTAL LIABILITIES AND CAPITAL 128,200.00
том STATEMENT OF FINANCIAL POSITION 30-Jun-20 ASSETS Current Assets Cash 48,600.00 Accounts Receivable P 60,000.00 Allowance for doubtful accounts 3,600.00 56,400.00 Merchandise Inventory 64,200.00 Supplies Inventory 4,800.00 Total Current Assets 174,000.00 Property and Equipment Furniture and fixtures P 36,000.00 Less: Accumulated Depreciation 16,800.00 19,200.00 TOTAL ASSETS 193,200.00 LIABILITIES AND CAPITAL Current Liabilities P 24,000.00 Accounts Payable Notes Payable 48,000.00 Total Current Liabilities P 72,000.00 Capital Tom, Capital 121,200.00 TOTAL LIABILITIES AND CAPITAL 193,200.00 P. P. P.
Transcribed Image Text:том STATEMENT OF FINANCIAL POSITION 30-Jun-20 ASSETS Current Assets Cash 48,600.00 Accounts Receivable P 60,000.00 Allowance for doubtful accounts 3,600.00 56,400.00 Merchandise Inventory 64,200.00 Supplies Inventory 4,800.00 Total Current Assets 174,000.00 Property and Equipment Furniture and fixtures P 36,000.00 Less: Accumulated Depreciation 16,800.00 19,200.00 TOTAL ASSETS 193,200.00 LIABILITIES AND CAPITAL Current Liabilities P 24,000.00 Accounts Payable Notes Payable 48,000.00 Total Current Liabilities P 72,000.00 Capital Tom, Capital 121,200.00 TOTAL LIABILITIES AND CAPITAL 193,200.00 P. P. P.
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