Problem 6Z admits A as a partner in business. Accounts in the ledger for Z on November 20, 2018, just before the admission of A, show the following balances:CashAccounts receivableMerchandise InventoryPrepaid expenseAccounts payableZ, Capital6,800.0014,200.0020,000.001,000.009,000.0033,000.00It is agreed that the purposes of establishing Z's interest the following adjustments shall be made:a) An allowance for doubtful accounts of 3% of accounts receivable is to be establishedb) The merchandise inventory is to be valued at P23,000.c) Prepaid salary expenses of P600 and accrued rent expense of P800 are to be recognized.A is to invest sufficient cash to obtain a 1/3 interest in the partnership.

In a partnership, 2 or more parties comply with operate and manage a business and share the profits…

Z admits A as a partner in business. Accounts in the ledger for Z on November 20, 2018, just before the admission of A, show the following balances: 6,800.00 14,200.00 20,000.00 1,000.00 9,000.00 33,000.00 Cash Accounts receivable Merchandise Inventory Prepaid expense Accounts payable Z, Capital

Z admits A as a partner in business. Accounts in the ledger for Z on November 20, 2018, just before the admission of A, show the following balances: 6,800.00 14,200.00 20,000.00 1,000.00 9,000.00 33,000.00 Cash Accounts receivable Merchandise Inventory Prepaid expense Accounts payable Z, Capital

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Post each of the above transactions in the Ledger of attached picture
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