Chapter 12 Part 2 Problem Solving

Please Provide Explanation and Solution. Please refer to the required porting for the question :)

12-32 | Basic Financial Accounting and Reporting by Prof. WIN Ballada The NAME: SCORE: ha SECTION: PROFESSOR: a . Problem #5 Two Sole Proprietors Form a Partnership b . Medina and Dalangin are fierce competitors who sell hunting equipment. They finally decided to join forces in order to increase their business and reduce costs. An agreement is reached between the two to begin operations as a partnership on Mar. 1, 2019. Medina and Dalangin have decided to share profits or losses in the ratio of 60:40, respectively. The statements of financial position of Medina and Dalangin as at Mar. 1, 2019 are as follows: Medina Dalangin Cash P 42,000 P 30,000 Accounts Receivable 389,200 169,200 Allowance for Uncollectible Accounts (22,400) (14,400) Merchandise Inventory 461,600 300,800 Prepaid Rent 6,000 Office Supplies 30,400 4,000 Land 40,000 Building 128,000 Accumulated Depreciation (32,000) Office Equipment 24,000 62,000 Accumulated Depreciation (6,000 (13,200) Repair Equipment 172,000 Accumulated Depreciation 68,000) Total Assets P1,158,800. P544,400 Notes Payable P 120,000 Accounts Payable 170,000 P111,600 Mortgage Payable 200,000 Medina, Capital 668,800 Dalangin, Capital 432,800 Total Liabilities and Owners' Equity P1,158,800 P544,400H!| eu Partnerships: Basic Considerations and Formation | 12-33 The name of the partnership will be Medina and Dalangin Hunting Gears. The partners have agreed to effect the following adjustments: a. Medina's merchandise inventory is to be reduced by P105,200. The inventory of Dalangin will be increased by P7,200. b. The following are the fair market values of the various assets: Medina Dalangin y finally ts. An Land P108,000 Building 192,000 Mar. 1, Office Equipment 16,000 P40,000 Repair Equipment 124,000 f 60:40, c. One-half of the notes payable of Medina are personal notes. All other liabilities of the partners are assumed by the partnership. 19 are as d. The prepaid rent in the books of Dalangin will be consumed by the partnership. Required: Prepare the journal entries to record the formation of the partnership.Partnerships: Basic Considerations and Formation | 12-31 NAME: SECTION: SCORE: PROFESSOR: Problem #4 A Sole Proprietor and an Individual with No Business Form a Partnership s. Her On Apr. 8, 2019, Tolentino who has her own retail business and Tan, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Tolentino is as follows: Tolentino Marketing Statement of Financial Position April 8, 2019 Assets Cash 4,000 Accounts Receivable P160,000 Less: Allowance for Uncollectible Accounts 16,000 144,000 Inventory 200,000 Equipment P 50,000 Less: Accumulated Depreciation 10,000 40,000 Total Assets P388,000 Liabilities and Capital e Jan. Accounts Payable P 36,000 s and Tolentino, Capital 352,000 Total Liabilities and Capital P388,000 greed Conditions agreed upon before the formation of the partnership: and a. The accounts receivable of Tolentino is estimated to be 70% realizable. me of b. The accumulated depreciation of the equipment will be increased by P10,000. C. The accounts payable will be assumed by the partnership. . The capital of the partnership is based on the adjusted capital balance of Tolentino. Tan is to contribute cash in order to make the partner's capital balances proportionate to the profit and loss ratio. ation Required: 1. Prepare the necessary journal entries in the books of Tolentino. 2. Prepare the opening journal entries in the books of the partnership.Bu 12-34 | Basic Financial Accounting and Reporting by Prof. WIN Ballada SCORE: NAME: SECTION: PROFESSOR: Problem #6 Two Sole Proprietors Form a Partnership On Oct. 31, 2019, Apalisoc and Tuddao agreed to combine their proprietorships as a partnership. Their statements of financial position are as follows: Apalisoc's Business Tuddao's Business Le Book Current Book Current Assets Value Market Value Value Market Af Value Cash 37,000 P 37,000 P 80,000 P 80,000 Accounts Receivable (net) 220,000 202,000 80,000 63,000 Inventory 510,000 460,000 340,000 351,000 Property and Equipment (net) 1,218,000 1,235,000 535,000 574,000 Total Assets P1,985,000 P1,934,000 P1,035,000 P1,068,000 Liabilities and Capital Accounts Payable P 236,000 P 236,000 P 91,000 P 91,000 Accrued Expenses 22,000 22,000 14,000 14,000 Notes Payable 750,000 750,000 Apalisoc, Capital 977,000 Tuddao, Capital 930,000 Total Liabilities & Capital P1,985,000 P1,934,000 P1,035,000 P1,068,000 Required: 1. Record the partnership formation. 2. Prepare the partnership's statement of financial position as at Oct. 31, 2019