Problem - II. On August 1, Isada and Ureta pooled their assets to form a partnership, with the firm to take over their business assets and assume the liabilities. Partnership capitals are to be based on net assets transferred after the following adjustments. Profits and losses are allocated equally. The inventory of Ureta is to be increased by P4,000; an allowance for doubtful accounts of P1,000 and P1,500 are to be set up in the books of Isada and Ureta, respectively, and accounts payable of P4,000 is to be recognized in Isada's books. Isada P75,000 5,000 (5) Prepare a compound adjusting entries in the books of Ureta. Ureta Assets P113,000 34,500 Liabilities (6) What is the capital of Isada and Ureta after the above adjustments?
Problem - II. On August 1, Isada and Ureta pooled their assets to form a partnership, with the firm to take over their business assets and assume the liabilities. Partnership capitals are to be based on net assets transferred after the following adjustments. Profits and losses are allocated equally. The inventory of Ureta is to be increased by P4,000; an allowance for doubtful accounts of P1,000 and P1,500 are to be set up in the books of Isada and Ureta, respectively, and accounts payable of P4,000 is to be recognized in Isada's books. Isada P75,000 5,000 (5) Prepare a compound adjusting entries in the books of Ureta. Ureta Assets P113,000 34,500 Liabilities (6) What is the capital of Isada and Ureta after the above adjustments?
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 6SPA
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Transcribed Image Text:Problem - III. On August 1, Isada and Ureta pooled their assets to form a partnership, with the firm to take over their business
assets and assume the liabilities. Partnership capitals are to be based on net assets transferred after the following
adjustments. Profits and losses are allocated equally.
The inventory of Ureta is to be increased by P4,000; an allowance for doubtful accounts of P1,000 and P1,500 are to be
set up in the books of Isada and Ureta, respectively, and accounts payable of P4,000 is to be recognized in Isada's books.
The individual trial balances on August, before adjustments, follow:
Isada
Ureta
P75,000
5,000
(5) Prepare a compound adjusting entries in the books of Ureta.
(6) What is the capital of Isada and Ureta after the above adjustments?
Assets
P113,000
34,500
Liabilities
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