The document contains entries to record the formation and capital contributions of various partnerships.
In the first exercise, entries record Dorothy and Marks contributing cash and land/building as capital. Spencer is later admitted as an industrial partner with 20% share of profits.
The second exercise contains entries for equipment, cash, and land contributions from various partners.
Subsequent exercises contain adjusting and closing entries for the partnerships at various dates, as well as formation of new partnership books to combine the accounts.
The document contains entries to record the formation and capital contributions of various partnerships.
In the first exercise, entries record Dorothy and Marks contributing cash and land/building as capital. Spencer is later admitted as an industrial partner with 20% share of profits.
The second exercise contains entries for equipment, cash, and land contributions from various partners.
Subsequent exercises contain adjusting and closing entries for the partnerships at various dates, as well as formation of new partnership books to combine the accounts.
The document contains entries to record the formation and capital contributions of various partnerships.
In the first exercise, entries record Dorothy and Marks contributing cash and land/building as capital. Spencer is later admitted as an industrial partner with 20% share of profits.
The second exercise contains entries for equipment, cash, and land contributions from various partners.
Subsequent exercises contain adjusting and closing entries for the partnerships at various dates, as well as formation of new partnership books to combine the accounts.
The document contains entries to record the formation and capital contributions of various partnerships.
In the first exercise, entries record Dorothy and Marks contributing cash and land/building as capital. Spencer is later admitted as an industrial partner with 20% share of profits.
The second exercise contains entries for equipment, cash, and land contributions from various partners.
Subsequent exercises contain adjusting and closing entries for the partnerships at various dates, as well as formation of new partnership books to combine the accounts.
MEMO: Spencer is admitted as an industrial partner with 20% share in partnership profits. EXERCISE 2
ENTRIES: a.) October 1,2019 Equipment 550,000 L. Paras, Capital 550,000
Cash 350,000 Land 1,050,000 Mortgage payable 200,000 M. Parayno, Capital 1,200,000 ENTRIES:
Assuming the partnership will not assume the mortgage payable on the land of M. Parayno. b.) October 1,2019
Equipment 550,000 L. Paras, Capital 550,000
Cash 350,000 Land 1,050,000 M. Parayno, Capital 1,400,000 EXERCISE 3
ENTRIES: Adjusting and closing entries: a.) December 31,2019 J.Jay Capital 2,400 Allowance for bad debts 2,400
Merchandise Inventory 22,000
J.Jay Capital 22,000
Prepaid Expenses 6,500
J.Jay Capital 6,500
J.Jay Capital 4,000
Accrued liabilities 4,000 ENTRIES:
Adjusting and closing entries:
a.) December 31,2019 J.Jay Capital 286,100 Allowance for bad debts 2,400 Accrued liabilities 4,000 Accounts payable 62,000 Merchandise Inventory 202,000 Prepaid Expenses 6,500 Cash 26,000 Accounts receivable 120,000 ENTRIES:
Entries in new set of books
b.) December 31,2019 Merchandise Inventory 202,000 Prepaid Expenses 6,500 Cash 26,000 Accounts receivable 120,000 Allowance for bad debts 2,400 J.Jay Capital = 286,100 (2/3 or Accrued liabilities 4,000 66.66666%) ` Accounts payable 62,000 J.Jay Capital 286,100 K. Kho = 1/3 of the total partnership capital Cash 143,050 286,100/ 0.666666667 = K. Kho, Capital 143,050 429,150 x 1/3 = 143,050 EXERCISE 4 ENTRIES:
a.) December 1,2019
Irvin Co, Capital 40,000 Merchandise Inventory 40,000
Irvin Co, Capital 8,000
Allowance for Uncollectible Accounts 8,000
Irvin Co, Capital 40,000
Accumulated Depreciation 40,000
Accumulated Depreciation 60,000
Equipment 60,000 Cash 293,000 Jester Yu, Capital 293,000 b.) The statement of financial position of Irvin Co & Jester Yu Partnership on December 1,2019 at the time of formation is as follows: Irvin Co & Jester Yu Partnership Statement of Financial Position December 1,2019
Assets Cash P 653,000
Accounts Receivable P 960,000
Less: Allowance for Uncollectible accounts 48,000 912,000 Merchandise Inventory 280,000 Property, plant and equipment 180,000 Total Assets P 2,025,000
Liabilities and Capital
Accounts payable P 560,000 Irvin Co, Capital 1,172,000 Jester Yu, Capital 293,000 Total Liabilities and Capital P 2,025,000 EXERCISE 5 ENTRIES:
a.) September 30,2019 - Rob books (Adjusting entries)
R. Rob, Capital 40,000 Allowance for Uncollectible Accounts 40,000
R. Rob, Capital 20,000
Accumulated Depreciation 20,000 ENTRIES:
a.) September 30,2019 - Jon books (Adjusting entries)
J. Jon, Capital 15,000 Allowance for Uncollectible Accounts 15,000
Accumulated Depreciation 15,000
J.Jon, Capital 15,000
Prepaid Expenses 20,000
J. Jon, Capital 20,000
J.Jon, Capital 25,000
Accrued Expenses 25,000 ENTRIES:
a.) September 30,2019 - Rob books (Closing entries)
R. Rob, Capital 540,000 Allowance for Uncollectible Accounts 120,000 Accumulated Depreciation 70,000 Accounts payable 400,000 Cash 80,000 Accounts receivable 800,000 Equipment 250,000 ENTRIES:
a.) September 30,2019 - Jon books (Closing entries)
J. Jon, Capital 685,000 Allowance for Uncollectible Accounts 45,000 Accumulated Depreciation 75,000 Accounts payable 290,000 Accrued Expenses 25,000 Cash 350,000 Accounts receivable 300,000 Equipment 450,000 Prepaid Expenses 20,000 ENTRIES:
b.) September 30,2019 - New partnership books
Cash 80,000 Accounts receivable 800,000 Equipment 180,000 R. Rob, Capital 540,000 Allowance for Uncollectible Accounts 120,000 Accounts payable 400,000 ENTRIES:
b.) September 30,2019 - New partnership books
Cash 350,000 Accounts receivable 300,000 Equipment 375,000 Prepaid Expenses 20,000 J. Jon, Capital 685,000 R. Rob, Capital = 540,000 Allowance for Uncollectible Accounts 45,000 Accounts payable 290,000 J. Jon, Capital = 685,000 ( Accrued Expenses 25,000 60%)
685,000/ 0.60= 1,141,666.67 x
R.Rob, Capital 83,333.33 40% = 456,666.67 Cash/ other assets 83,333.33
