(a) Prepare the necessary entries to adjust and close the books of ITV Company

(b) Prepare the entries to record the investments of ITV Co and YSL in the new partnership books

(c) Prepare a statement of financial position for the partnership if ITV Co and YSL on December 1, 2021

ITV Company Statement of Financial Position The statement of financial position of ITV Company, a single proprietorship on December 1, 2021 is shown. December 1, 2021 Assets Cash P630,000 On this date, ITV Co, the owner, admits YSL and the latter is to invest cash to give him a capital credit equal to one-fourth (1/4) of ITV Co's capital after giving effect to the adjustments of the following items: The merchandise inventory is to be valued at P 612,500 The accounts receivable is estimated to be 95% Accounts Receivable P 1,680,000 Less: Allowance for Uncollectible Accounts 70,000 1,610,000 560,000 . Merchandise Inventory Property, Plant and Equipment Less: Accumulated Depreciation Total Assets collectible. 420,000 35,000 385.000 P 3.185.000 The recoverable amount of property, plant and equipment is estimated to be P 280,000 Liabilities and Capital A new set of books for the partnership is to be used in compliance with the BIR requirements. P 980,000 Accounts Payable ITV Co, Capital Total Liabilities and Capital 2,205,000 P 3.185.000 ITV Company Statement of Financial Position The statement of financial position of ITV Company, a single proprietorship on December 1, 2021 is shown. December 1, 2021 Assets Cash P630,000 On this date, ITV Co, the owner, admits YSL and the latter is to invest cash to give him a capital credit equal to one-fourth (1/4) of ITV Co's capital after giving effect to the adjustments of the following items: The merchandise inventory is to be valued at P 612,500 The accounts receivable is estimated to be 95% Accounts Receivable P 1,680,000 Less: Allowance for Uncollectible Accounts 70,000 1,610,000 560,000 . Merchandise Inventory Property, Plant and Equipment Less: Accumulated Depreciation Total Assets collectible. 420,000 35,000 385.000 P 3.185.000 The recoverable amount of property, plant and equipment is estimated to be P 280,000 Liabilities and Capital A new set of books for the partnership is to be used in compliance with the BIR requirements. P 980,000 Accounts Payable ITV Co, Capital Total Liabilities and Capital 2,205,000 P 3.185.000