partnership. Their statements of financial position on Mar. 1, before adjustments, On Mar. 1, 2016, Sarabia and Abad decided to combine their businesses and for showed the following: Sarabia Abad P 9,000 18,500 30,000 30,000 11,500 6,375 P105,375 P 3,750 13,500 19,500 Cash Accounts receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses 9,000 2,750 3,000 P51,500 Total P 45,750 59,625 P105,375 Accounts Payable P18,000 33,500 P51,500 Capital Total They agreed to have the following items recordėd in their books: Provide 2% allowance for doubtful accounts. Sarabia's furniture and fixtures should be P31,000, while Abad's office equipment is under-depreciated by P250. Rent expense incurred previously by Sarabia was not yet recorded amounting to P1,000, while salary expense incurred by Abad was not also recorded amounting .1. 2. 3. to P800. 4. The fair market values of inventory amounted to: For Sarabia P29,500
partnership. Their statements of financial position on Mar. 1, before adjustments, On Mar. 1, 2016, Sarabia and Abad decided to combine their businesses and for showed the following: Sarabia Abad P 9,000 18,500 30,000 30,000 11,500 6,375 P105,375 P 3,750 13,500 19,500 Cash Accounts receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses 9,000 2,750 3,000 P51,500 Total P 45,750 59,625 P105,375 Accounts Payable P18,000 33,500 P51,500 Capital Total They agreed to have the following items recordėd in their books: Provide 2% allowance for doubtful accounts. Sarabia's furniture and fixtures should be P31,000, while Abad's office equipment is under-depreciated by P250. Rent expense incurred previously by Sarabia was not yet recorded amounting to P1,000, while salary expense incurred by Abad was not also recorded amounting .1. 2. 3. to P800. 4. The fair market values of inventory amounted to: For Sarabia P29,500
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.22E
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Compute the bet (debit) credit adjustment for sarabia and abad
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