Problem #21 Preparation of Financial Statements The following are the adjusted account balances of Calamba and Santiago as at Dec. 31, 2019: P 677,820 545,070 462,870 18,790 132,310 612,000 326,400 753,150 224,880 149,390 35,000 1,320,420 299,000 7,350 5,407,160 43,050 Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Allowance for Uncollectible Accounts Cash Calamba, Capital Calamba, Drawing Equipment Transportation In General Expenses (control) Interest Expense Merchandise Inventory, December 31 Notes Payable Prepaid Insurance Purchases Purchases Discounts 259,600 499,600 244,800 7,155,000 375,750 385,880 Purchases Returns and Allowances Santiago, Capital Santiago, Drawing Sales Sales Returns and Allowances Selling Expenses (control) There were no changes in the partners' Capital accounts during the year. The merchandise inventory at the beginning of the year was P1,440,590. The partnership agreement provides for salary allowances of P330,000 for Calamba and P290.000 for Santiago. It also stipulates an interest allowance of 10% on invested capital at the beginning of the year, with the remainder of the profit to be divided equally. Required: 1. Prepare an income statement for the year. Show the division of profit. 2. Prepare a statement of changes in partners' equity for the year. 3. Prepare a statement of financial position at the end of the vear.
Problem #21 Preparation of Financial Statements The following are the adjusted account balances of Calamba and Santiago as at Dec. 31, 2019: P 677,820 545,070 462,870 18,790 132,310 612,000 326,400 753,150 224,880 149,390 35,000 1,320,420 299,000 7,350 5,407,160 43,050 Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Allowance for Uncollectible Accounts Cash Calamba, Capital Calamba, Drawing Equipment Transportation In General Expenses (control) Interest Expense Merchandise Inventory, December 31 Notes Payable Prepaid Insurance Purchases Purchases Discounts 259,600 499,600 244,800 7,155,000 375,750 385,880 Purchases Returns and Allowances Santiago, Capital Santiago, Drawing Sales Sales Returns and Allowances Selling Expenses (control) There were no changes in the partners' Capital accounts during the year. The merchandise inventory at the beginning of the year was P1,440,590. The partnership agreement provides for salary allowances of P330,000 for Calamba and P290.000 for Santiago. It also stipulates an interest allowance of 10% on invested capital at the beginning of the year, with the remainder of the profit to be divided equally. Required: 1. Prepare an income statement for the year. Show the division of profit. 2. Prepare a statement of changes in partners' equity for the year. 3. Prepare a statement of financial position at the end of the vear.
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter14: Activities Required In Completing A Quality Audit
Section: Chapter Questions
Problem 65RSCQ
Related questions
Question
Transcribed Image Text:SCORE:
SECTION:
PROFESSOR:
Problem #21
Preparation of Financial Statements
2019:
Accounts Payable
Accounts Receivable
Accumulated Depreciation-Equipment
Allowance for Uncollectible Accounts
Cash
Calamba, Capital
Calamba, Drawing
Equipment
Transportation In
General Expenses (control)
Interest Expense
Merchandise Inventory, December 31
Notes Payable
Prepaid Insurance
P 677,820
545,070
462,870
18,790
132,310
612,000
326,400
753,150
224,880
149,390
35,000
1,320,420
299,000
7,350
5,407,160
43,050
259,600
499,600
Purchases
Purchases Discounts
Purchases Returns and Allowances
Santiago, Capital
Santiago, Drawing
Sales
Sales Returns and Allowances
244,800
7,155,000
375,750
385,880
Selling Expenses (control)
There were no changes in the partners' Capital accounts during the year. The
merchandise inventory at the beginning of the year was P1,440,590. The partnership
agreement provides for salary allowances of P330,000 for Calamba and P290,000 for
Santiago. It also stipulates an interest allowance of 10% on invested capital at the
beginning of the year, with the remainder of the profit to be divided equally.
Required:
1. Prepare an income statement for the year. Show the division of profit.
2. Prepare a statement of changes in partners' equity for the year,
3. Prepare a statement of financial position at the end of the year.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Accounting Information Systems
Finance
ISBN:
9781337552127
Author:
Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Accounting Information Systems
Finance
ISBN:
9781337552127
Author:
Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher:
Cengage Learning
Business/Professional Ethics Directors/Executives…
Accounting
ISBN:
9781337485913
Author:
BROOKS
Publisher:
Cengage