a)Journalize the adjusting entries.b)Record the adjusting entries. Rasha and Salwa decided to form a partnership, Al Amal Company,with the following beginning balances for both.Al-Amal CompanyTrial BalamceJanuary 1, 2020Account NameDebitCreditCash50,00035,000Account ReceivableSuppliesEquipmentAccount PayableRasha CapitalSalwa CapitalTotal500070,00010,00075,00075,000160,000160,000Summarized transactions for January were as follows:Paid $36000 in advance for one year Insurance policy toAlico Co. hiredJan. 1Jan.4Purchase $4,000 Supplies on account from A.A Co.Jan.9Paid $8,000 to Mariam Company for account payable due.Hired financial manager for accounting dep. for 10,000Monthly.Jan. 15Received $12,400 cash in advance from C.C. Co. forservice will be completed later.Jan. 17Jan.20Purchase supplies for 8,000 cash from Dar Al Manal.Jan.24Received 11,000 for service performed on account from

Date Account Name Debit Credit Jan 1 Prepaid Insurance Cash $36,000 $36,000 Jan 4…

Answered: a)Journalize the adjusting entries.…

Business

Accounting

a)Journalize the adjusting entries. b)Record the adjusting entries.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
On the December 31, 2020, the Statement of Financial Position of LOVE Partnership shows the following data with profit or loss sharing of 5:3:2.CashP10,000,000Noncash Asset40,000,000Total LiabilitiesP20,000,000Ona10,000,000Vina15,000,000Ena5,000,000On January 01, 2021, Lina is admitted to the new partnership named LOVE by investing P20,000,000 for 50% capital interest in the new partnership. What is the new capital balance of Ena after Lina’s admission in LOVE Partnership?
On February 28, 2022, Aris and Yang formed a partnership. The partners agreed to invest equal amounts of capital. Aris invested his proprietorship’s assets and liabilities as follows: Account Book Value Fair Value Accounts Receivable ₱72,000 ₱72,000 Allowance for Bad Debts 0 10,500 Merchandise Inventory 223,400 241,000 Prepaid Expenses 17,000 17,000 Office Equipment 459,000 276,000 Accumulated Depreciation 153,000 0 Accounts Payable 191,000 191,000 On February 28, Yang invested cash in an amount equal to the current market value of Aris’ partnership capital. Prepare the journal entries to record the partner’s initial investment in the new partnership Prepare the partnership’s statement of financial position immediately after its formation on February 28, 2022
The partnership accounts of Guess, Jag and Levis are shown below as of December 31, 2019. Profits and losses are shared 50%; 30%; and 20%, respectively. Guess, Drawing (debit balance)P (32,000)Levis, Drawing (debit balance)(12,000)Jag, Loan40,000Guess, Capital164,000Jag, Capital134,000Levis, Capital144,000 Total assets amounted to P 638,000, including cash of P 70,000, and P 200,000 worth of liabilities. On January 2019, the partnership was liquidated, and Jag received P 111,000 cash as final settlement.Required:1.The total loss from the liquidation of the partnership2.Prepare the statement of liquidation.3.Journal entries to record the liquidation.
On December 31, 2030, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 1:6:3:Current Assets P2,600,000 , Total Liabilities P 600,000Noncurrent Assets 4,000,000 A, Capital 2,800,000B, Capital 1,400,000C, Capital 1,800,000 On January 1, 2031, D is admitted to the partnership by investing P2,000,000 to the partnership for 20% capital interest. If all the assets of the existing partnership are properly valued, what is the capital balance of C after the admission of D?a. P1,920,000b. P1,800,000c. P1,620,000d. P2,400,000
In the January 1, 2020 Kalaw and Borromeo formed partnership with each contributing the following: Kalaw Borromeo Cash 50,000 70,000 Equipments 50,000 75,000 Building 225,000 Furniture 10,000 Accounts payable 20,000 Loans Payable 100,000 All liabilities are to be assumed by the partnership. The partners agreed the equipments should be provided a 20% depreciation and the building has a market value of 200,000. The value of the furniture should be decreased by P2,000 There is an unrecorded liability in the books of Kalaw amounting to P2,000 and accrued interest on loans to Borromeo amounting to 5% of the loans. How much is the total capital of the partners before the agreed adjustments
On June 30, 2021, William and Bryan formed a partnership. The partners agreed to invest equalamounts of capital. William invested his proprietorship’s assets and liabilities as follows: Book Value Fair Market ValueAccounts Receivable Php 720,000 Php 720,000Allowance for Doubtful Accounts - 0 - 100,500Merchandise Inventory 233,000 241,000Prepaid Expenses 117,000 117,000Office Equipment 459,000 276,000Accumulated Depreciation 153,000 - 0 -Accounts Payable 191,000…
On December 31, 2020, the Statement of Financial Position of EYBISI Partnership with profit or loss ratio of 6:1:3 of partners Anna, Belle, and Cassie respectively, revealed the following data: Cash - 1,000,000 Other Liabilities - 2,000,000 Receivable from Anna - 500,000 Payable to Belle - 1,000,000 Other non-cash assets - 2,000,000 Payable to Cassie - 100,000 Anna, Capital 700,000 Belle, Capital (650,000) Cassie, Capital 350,000 On January 1, 2021, the partners decided to liquidate the partnership. All partners are legally declared to be personally insolvent. The other non-cash assets were sold for $1,500,000. Liquidation expenses amounting to $100,000 were incurred. a. What amount of cash was received by Belle at the end of partnership…
LAM, KO and TO share profits and losses as follows: LAM 20%, KO 30%, and TO 50%. The partnership’s Statement of Financial Position as of December 31, 2020 is presented below: Cash –P410,400; Noncash Assets – P2,028,600; Liabilities – P690,750; Loan from KO – P67,500; LAM, Capital– P270,000; KO, Capital – P398,250; TO, Capital – P1,012,500. The partners decided to liquidate onJanuary 2, 2021. All partners are personally solvent except for LAM. If TO received P236,250 for herinterest, how much were the noncash assets sold for? a. P476,100b. P516,600c. P1,512,00d. P1,552,500
On January 1, 2031, A, B and C formed ABC Partnership with total agreed capitalization of P2,000,000. The capital interest ratio of the ABC Partnership is 5:1:4 while the profit or loss ratio is 3:2:5, respectively for A, B and C. During 2031, A and B made additional investments of P400,000 and P1,000,000, respectively. At the end of 2031, B and C made drawings of P600,000 and P200,000, respectively. On December 31, 2031, the capital balance of B is reported at P400,000. 7. What is the net income or net loss of ABC Partnership for the year ended December 31,2031?a. (P1,000,000)b. (P2,000,000)c. P1,600,000d. P2,400,0008. What is the capital balance of A on December 31, 2031?a. P900,000b. P700,000c. P1,100,000d. P800,0009. What is the capital balance of C on December 31, 2031?a. P300,000b. P100,000c. P400,000d. P500,000
As of July 1, 2020, MM and AA decided to form a partnership. Their balance sheets on this date are: MM AA Cash P 15,000 P 38,000 Accounts Receivable 680,000 255,000 Allowance for doubtful accounts (140,000) (30,000) Merchandise Inventory - 202,000 Machinery and Equipment 150,000 270,000 Total P705,000 P735,000 Accounts Payable 135,000 240,000 MM, capital 570,000 AA, capital - 495,000 Total P705,000 P735,000 The partners agreed that the machinery and equipment of MM is under depreciated by P15,000 and that ofAA by P45,000. Allowances for doubtful accounts is to be set up amounting to P120,000 for MM andP40,000 for AA. The partnership agreement provides for the profit and loss ratio and capital interest of60% to MM and 40% to AA with AA’s capital as base. How much cash must MM invest to bring the partner's capital balances proportionate to their profit and loss ratio?
On December 31, 2020, the accounting records of Alma, Brenda, and Dely partnership included the following balances: Alma, drawing 60,000; Dely, drawing P22,500; Brenda loan P75,000; Alma, capital 307,500; Brenda, capital P251,250 and Dely, capital P270,000. The total assets of the partnership amounted to P1,196,250, including P131,250 cash, and partnership liabilities totaled P375,000. The partnership was liquidated Dec. 31 and Dely received P208,125 cash pursuant to the liquidation. Alma, Brenda and Dely share profits and losses in a 5:3:2 ratio, respectively. 999,375 774,375 886,875 624,375 The loss on realization is: Group of answer choices 309,374 61,875 868,125 196,875