please answer all the questions immediately thankyou · J Jay admits K. Kho as a partner in his business. Accounts in the ledger of JJay on December 31,2019. just before theadmission of K. Kho show the following balances:CashP 26,000Accounts receivable120,000Merchandise Inventory180,000Accounts payable62,000Jay. Capital264.000It is agreed that for purposes of establishing JJay's interest, the following adjustments should be made:- an allowance for uncollectible accounts of 2% of accounts receivable is to be established.• The merchandise inventory is to be valued at P 202.000• Prepaid Expenses of P 6,500 and accrued liabilities of P 4,000 are to be recognized.K. Kho is to invest sufficient cash to obtain a 1/3 interest in the partnership. The partnership will use a new set of books.REQUIRED:a.) Give the entries to adjust and close the books of J. Jay.b.) Give the necessary entries in the new set of books of the partnership.

Working note: Computation of cash invested by K. Kho in the partnership:

I lay admits K. Kho as a partner in his business. Accounts in the ledger of Jay on December 31,2019. just before the admission of K. Kho show the following balances Cash P 26,000 Accounts receivable 120,000 Merchandise Inventory 180,000 Accounts payable 62.000 Hay. Capital 264,000 Ik is agreed that for purposes of establishing JJay's interest, the following adjustments should be made: an allowance for uncollecible accounts of 2% of accounts receivable is to be established. The merchandise inventory is to be valued at P 202.000 Prepaid Expenses of P 6.500 and accrued liabilicies of P 4,000 are to be recognized. K. Kho is to invest sufficient cash to obrain a 1/3 interest in the partnership. The partnership will use a new set of books. REQUIRED: a) Give the entries to adjust and close the books of J Jay. b.) Give the necessary entries in the new set of books of the partnership.

I lay admits K. Kho as a partner in his business. Accounts in the ledger of Jay on December 31,2019. just before the admission of K. Kho show the following balances Cash P 26,000 Accounts receivable 120,000 Merchandise Inventory 180,000 Accounts payable 62.000 Hay. Capital 264,000 Ik is agreed that for purposes of establishing JJay's interest, the following adjustments should be made: an allowance for uncollecible accounts of 2% of accounts receivable is to be established. The merchandise inventory is to be valued at P 202.000 Prepaid Expenses of P 6.500 and accrued liabilicies of P 4,000 are to be recognized. K. Kho is to invest sufficient cash to obrain a 1/3 interest in the partnership. The partnership will use a new set of books. REQUIRED: a) Give the entries to adjust and close the books of J Jay. b.) Give the necessary entries in the new set of books of the partnership.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 30CE: LO.2 In 2019, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to...

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