Exercise 2-4. Statement of Financial Position PreparationFrancis, the proprietor of Francis Landscaping Services invites Pio to be a partner in his business.Accounts in the ledger of Francis on October 1, 2020 just before the admission of Pio show thefollowing:CashAccounts receivablesAllowance for bad debts.Landscaping SuppliesFurniture and equipmentAccumulated depreciationAccounts payableFrancis, CapitalDebitP 130,000720,000550,0001,000,000CreditPio is to invest cash which will make him an equal partner of Francis.P8,000It was agreed that for the purpose of establishing Francis' interest, the following adjustments.shall be made:100,000565,0001,727,000a) The allowance for bad debts shall be increased to 1.5% of accounts receivable.b) The Landscaping Supplies inventory is to be valued at P560,000.c) And a professional appraiser estimated that the furniture and equipment is worthP800,000.Anne'sLedger Balances25,00075,0005,00010,000120,0006,7008,000Exercise 2-5 Statement of Financial Position PreparationOn April 1, 2020, Anne invited Mary to form a partnership. The partnership will be known as Anne& Mary Catering Services. Anne will transfer her business' assets at agreed valuation to thepartnership. Anne & Mary Catering Services will assume the existing firm's liabilities.AgreedValuationCashAccounts ReceivableAllowance for Doubtful AccountsCatering Supplies InventoryCatering Utensils and EquipmentAccumulated DepreciationAccounts PayableMary will invest enough cash to give her 1/3 interest on the partnership's total capitalization.℗ 25,00075,0007,50015,000110,00008,000Required:(1) Compute the adjusted capital balance of Anne upon formation of the partnership.(2) Compute the cash investment of Mary upon formation of the partnership.(3) Prepare the initial statement of financial position for the newly formed partnership AMCatering Services as of April 1, 2020.

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Answered: Statement of Financial Position…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter4: Completing The Accounting Cycle

Section: Chapter Questions

Problem 5CP

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Make a Ledger in this problem Assume that on December 2, 2020. Mr. David Started DB Accounting Firm in Tagbina with the following assets as initial investments: PARTICULARS Cash 15,000 Computers 40,000 Furniture 50,000 Supplies 10,000 December 02 The business was registered with DTI, BIR, and Mayor’s permit spending P300, P500, and P1,200, respectively. 05 Acquired printer amounting to P10,000 for cash 15 Received electricity bill used by the business, P600. 15 Acquired computer chairs and tables on account, P10,000 payable within five days 20 Issued 3 months promissory note amounting to 10,000 to settle the obligation for acquiring computer chairs 21 Mr. David withdrew P1,000 for personal use. 23 Used supplies amounting to 8,000 26 Collected P50,000 for audit service to client 28 Billed P80,000 to the client for tax consultancy performed. 29 Transportation expense incurred and paid, P2,000 30 Provided 10% allowance for depreciation for the use of office equipment and…
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2020: Cash Equipment Accum.Deprec.Equipment AccountsPayable NotesPayable DavidWallace,Capital OlenaDunn,Capital DannyLin,Capital Account balances December 31, 2020 $ 40,300 $ 191,000 $ 102,000 $ 8,300 $ 25,000 $ 44,000 $ 27,000 $ 25,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.Required:1. Complete the schedule. (Negative answers should be indicated by a minus sign.) Cash Equipment Accum. deprec. Equipment Accounts Pay. Notes Pay. David Wallace, Capital Olena Dunn, Capital Danny Lin, Capital Account balance, December 31, 2020 $40,300 $191,000 $102,000 $8,300 $25,000 $44,000…
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2020: Cash Equipment Accum.Deprec.Equipment AccountsPayable NotesPayable DavidWallace,Capital OlenaDunn,Capital DannyLin,Capital Account balances December 31, 2020 $ 40,300 $ 191,000 $ 102,000 $ 8,300 $ 25,000 $ 44,000 $ 27,000 $ 25,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.Required:1. Complete the schedule. (Negative answers should be indicated by a minus sign.)
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2020: Cash Equipment Accum.Deprec.Equipment AccountsPayable NotesPayable DavidWallace,Capital OlenaDunn,Capital DannyLin,Capital Account balances December 31, 2020 $ 40,300 $ 191,000 $ 102,000 $ 8,300 $ 25,000 $ 44,000 $ 27,000 $ 25,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. The Schedule is complete, however, I'm struggling with the journal entries. I attached images of the completed schedule to assist with the journal entries. 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash). 1 Record the sale…
Keith Williams and Brian Adams were students when they formed a partnership several years ago for a part-time business called Music Works. Adjusted trial balance information for the year ended December 31, 2023, appears below. Account Account Accounts payable Accumulated depreciation Brian Adams, capital** Brian Adams, withdrawals Cash Equipment Expenses Balance* $ 11,100 Keith Williams, capital** Balance* $ 44,300 91,000 Keith Williams, withdrawals 66,000 38,000 Note payable, due May 2025*** 152,000 76,000 227,200 332,000 Office supplies Revenues Utilities payable 32,000 512,000 2,800 118,000 Assume all account balances are normal. The partners made no investments during the year. ***$56,000 of the note payable is due in May 2024. Required: 1. Prepare calculations that show how the profit should be allocated to the partners assuming the partnership agreement states that profit/(losses) are to be shared by allowing a $106,000 per year salary allowance to Williams, a $166,000 per year…
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2020: Cash Equipment Accum.Deprec.Equipment AccountsPayable NotesPayable DavidWallace,Capital OlenaDunn,Capital DannyLin,Capital Account balances December 31, 2020 $ 25,600 $ 170,000 $ 95,000 $ 7,600 $ 18,000 $ 37,000 $ 20,000 $ 18,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $62,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.Required:1. Complete the schedule. (Negative answers should be indicated by a minus sign.) 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash).
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Keith Williams and Brian Adams were students when they formed a partnership several years ago for a part-time business called Music Works. Adjusted trial balance Information for the year ended December 31, 2020, appears below. Account Accounts payable Accumulated depreciation. Brian Adams, capitales Brian Adams, withdrawals Cash Equipment Expenses Balance Account $ 11,500 Keith Willians, capital** 95,000 Keith Williams, withdrawals 42,000 Note payable, due May 2022*** 80,000 office supplies Revenues Utilities payable 232,000 340,000 122,000 *Assume all account balances are normal. "The partners made no investments during the year. ***$60,000 of the note payable is due in May 2021. Profit Salary alowance Balance of profit to be allocated Balance allocated on a 32 ratio Balance of profit Shares of the partners Required: 1. Prepare calculations that show how the profit should be allocated to the partners assuming the partnership agreement states that profit/(losses) are to be shared by…
Directions: Record the transactions directly into the T-accounts. The transactions are independent of one another. Use the following account titles: CashOwner’s WithdrawalsAccounts ReceivableProfessional FeesOffice EquipmentSalaries ExpenseOffice FurnitureRent ExpenseAccounts PayableUtility ExpenseOwner’s CapitalMiscellaneous Expense a. The owner deposited P280,000 in the name of his business.b. He purchased 4-in-1 equipment from Limay Equipment for P4,950, paying P1,000 in cash and the balance on the account.c. He bought chairs and tables for the office for P12,300 cash.d. He purchased furniture from Orion Company for P2,750 in cash.e. He received and paid the telephone bill from Ph Telecom amounting to P1,080.f. He billed his customers P12,940 for services on account.g. He paid P1,850 for the electric bill from BEBECO.h. He paid P3,500 for the membership fee.i. He received P17,650 in cash for services rendered.j. He paid P1,000 to partially settle accounts with Orion Company.k. He…
ASSIGNMENT 1. Helmuth owns a hardware store. His financial year ends 30 June. He provided the follow information: His debtors on 1 July 2019 included N$700 owed by Gunter. On 30 June 2020 Gunter paid half of the amount owing in cash and the balance was written off as bad debt. On 15 January 2021 Gunter paid the outstanding amount in cash. REQUIRED (a) Make the appropriate entries for the financial year ending 30 June 2020 and 30 June 2021 in the following ledger accounts. The accounts should be balanced or closed off. (i) Gunter's Account [3] (ii) Bad Debts Account [2] Bad Debts Recovered Account (ii)
The transactions below relate to S ASH for the month ended 30 June 2021. Date Transactions Amount 2021 RJun 01 S Ash deposited capital into the business bank account 80 00005 The business obtained a loan from LTC Bank 15 00007 Acquired a vehicle and settled the purchase price by cheque 25 00008 Bought cleaning material from AD Suppliers on credit 50010 Invoiced Dekker Hotel for cleaning services rendered 1 00012 Received a cheque from Dekker Hotel and deposited it in the bank account 50014 Paid Salaries by cheque 1 50016 An advert was published in the daily news. This is payable in30 days 25025 S Ash transferred his personal equipment into the business 10 00030 Stationery on hand 1 000 Required: Analyse the above transactions in tabular form as follows: A/C.DEBIT A/C.CREDIT A = E + L
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