Direction: Make a 10 column worksheet with a profit distribution table and;

a. Prepare the adjusting entries

b. Close the nominal accounts

c. Record the 30% tax liability

d. Make a statement of comprehensive income under the function of expense method and use line items with supporting notes. Rent and utilities are 75% distribution expenses.

e. Make a statement of partner's equity. Mel Capital was initially P80,000 before she made a permanent withdrawal.

f. Make a statement of financial position also using line items with supporting notes.

0 21. The following list of accounts and their balances appear on the books of MI Thai Spa as of December 31, 2018: Cash P 58.850 Mel, Capital 40.000 Accounts Receivable 32,400 Membership Fee 945.900 Allowance for Bad Debts 2,500 Service Fee Income 1.530,500 Notes Receivable 19,000 Advertising Expense 300,160 Unexpired Insurance 2,575 Taxes and Licenses 108,970 Furniture & Fixtures 238,000 Rent 644.000 Accumulated Depn. - Furniture 5,950 Sales Salaries 346.000 Equipment 432,000 Office Salaries 150,000 Accumulated Depn. - Equipment 21,600 Store Supplies Expense 3.400 Accounts Payable 15,000 Office Supplies Expense 2,090 Notes Payable 50,000 Utilities Expense 310.850 Unearned Commissions 600 Interest Expense 10,610 Jay, Capital 60,000 Interest Income 5,455 Jay, Personal 3.600 Loss on Foreign Exchange 15,000 Partnership agreement calls for the following: Monthly salary allowance of P5,000 for Mel and P7,500 for Jay, 12% interest on capital balances, and residual profit to be shared equally. Additional information were given to adjust the books: a) Provision for bad debts should be 10% of the outstanding accounts receivable. b) Office Furniture and Fixtures were acquired July 1, 2017 and the Delivery Equipment were acquired January 1, 2017. Depreciation rate is the same for both assets. c) One half of the unearned commission is already earned. d) Prepaid insurance on the delivery equipment is payable annually starting May 1. e) P10,000 of the notes receivable is interest bearing at 18% dated December 1, 2018 and due after 60 days. f) The note payable was issued to the bank and discounted at 18% for a year on December 1, 2018. The discount was charged to interest expense. g) Tax rate is 30%. Direction: Prepare a 10-column worksheet with a profit distribution table. Cash Accounts Receivable Allowance for Bad Debts Notes Receivable Unexpired Insurance Furniture & Fixtures Accumulated Depn. - Furniture Equipment Accumulated Depn. - Equipment Accounts Payable Notes Payable Unearned Commissions Jay, Capital Jay, Personal P 58,850 Mel, Capital 32,400 Membership Fee 2,500 Service Fee Income 19,000 Advertising Expense 2,575 Taxes and Licenses 238,000 Rent 5,950 Sales Salaries 432,000 Office Salaries 21,600 Store Supplies Expense 15,000 Office Supplies Expense 50,000 Utilities Expense 600 Interest Expense 60,000 Interest Income 3.600 Loss on Foreign Exchange 40.000 945.900 1,530,500 300,160 108.970 644,000 346.000 150.000 3,400 2.090 310.850 10.610 5.455 15.000 Partnership agreement calls for the following: Monthly salary allowance of P5,000 for Mel and P7,500 for Jay, 12% interest on capital balances, and residual profit to be shared equally. Additional information were given to adjust the books: a) Provision for bad debts should be 10% of the outstanding accounts receivable. b) Office Furniture and Fixtures were acquired July 1, 2017 and the Delivery Equipment were acquired January 1, 2017. Depreciation rate is the same for both assets. c) One half of the unearned commission is already earned. d) Prepaid insurance on the delivery equipment is payable annually starting May 1. e) P10,000 of the notes receivable is interest bearing at 18% dated December 1, 2018 and due after 60 days. f) The note payable was issued to the bank and discounted at 18% for a year on December 1, 2018. The discount was charged to interest expense. g) Tax rate is 30%. bution table 0 21. The following list of accounts and their balances appear on the books of MI Thai Spa as of December 31, 2018: Cash P 58.850 Mel, Capital 40.000 Accounts Receivable 32,400 Membership Fee 945.900 Allowance for Bad Debts 2,500 Service Fee Income 1.530,500 Notes Receivable 19,000 Advertising Expense 300,160 Unexpired Insurance 2,575 Taxes and Licenses 108,970 Furniture & Fixtures 238,000 Rent 644.000 Accumulated Depn. - Furniture 5,950 Sales Salaries 346.000 Equipment 432,000 Office Salaries 150,000 Accumulated Depn. - Equipment 21,600 Store Supplies Expense 3.400 Accounts Payable 15,000 Office Supplies Expense 2,090 Notes Payable 50,000 Utilities Expense 310.850 Unearned Commissions 600 Interest Expense 10,610 Jay, Capital 60,000 Interest Income 5,455 Jay, Personal 3.600 Loss on Foreign Exchange 15,000 Partnership agreement calls for the following: Monthly salary allowance of P5,000 for Mel and P7,500 for Jay, 12% interest on capital balances, and residual profit to be shared equally. Additional information were given to adjust the books: a) Provision for bad debts should be 10% of the outstanding accounts receivable. b) Office Furniture and Fixtures were acquired July 1, 2017 and the Delivery Equipment were acquired January 1, 2017. Depreciation rate is the same for both assets. c) One half of the unearned commission is already earned. d) Prepaid insurance on the delivery equipment is payable annually starting May 1. e) P10,000 of the notes receivable is interest bearing at 18% dated December 1, 2018 and due after 60 days. f) The note payable was issued to the bank and discounted at 18% for a year on December 1, 2018. The discount was charged to interest expense. g) Tax rate is 30%. Direction: Prepare a 10-column worksheet with a profit distribution table. Cash Accounts Receivable Allowance for Bad Debts Notes Receivable Unexpired Insurance Furniture & Fixtures Accumulated Depn. - Furniture Equipment Accumulated Depn. - Equipment Accounts Payable Notes Payable Unearned Commissions Jay, Capital Jay, Personal P 58,850 Mel, Capital 32,400 Membership Fee 2,500 Service Fee Income 19,000 Advertising Expense 2,575 Taxes and Licenses 238,000 Rent 5,950 Sales Salaries 432,000 Office Salaries 21,600 Store Supplies Expense 15,000 Office Supplies Expense 50,000 Utilities Expense 600 Interest Expense 60,000 Interest Income 3.600 Loss on Foreign Exchange 40.000 945.900 1,530,500 300,160 108.970 644,000 346.000 150.000 3,400 2.090 310.850 10.610 5.455 15.000 Partnership agreement calls for the following: Monthly salary allowance of P5,000 for Mel and P7,500 for Jay, 12% interest on capital balances, and residual profit to be shared equally. Additional information were given to adjust the books: a) Provision for bad debts should be 10% of the outstanding accounts receivable. b) Office Furniture and Fixtures were acquired July 1, 2017 and the Delivery Equipment were acquired January 1, 2017. Depreciation rate is the same for both assets. c) One half of the unearned commission is already earned. d) Prepaid insurance on the delivery equipment is payable annually starting May 1. e) P10,000 of the notes receivable is interest bearing at 18% dated December 1, 2018 and due after 60 days. f) The note payable was issued to the bank and discounted at 18% for a year on December 1, 2018. The discount was charged to interest expense. g) Tax rate is 30%. bution table