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REQUIRED: ASSUMING A NEW SET OF BOOKS IS USED BY THE NEW PARTNERSHIP, PREPARE:
1.) ADJUSTING ENTRIES ON THE BOOK OF AQUINO AND YAP
2.)CLOSING ENTRIES ON THE BOOKS OF AQUINO AND YAP
3.)JOURNAL ENTRIES IN THE BOOKS OF THE PARTNERSHIP TO RECORD INVESTMENTS OF AQUINO AND YAP AND THE WITHDRAWAL OR ADDITIONAL INVESTMENT OF CASH BY YAP.
PowerPoint Slide Show - Partnership Formation Presentation (1) - PowerPoint X Required: Assuming a new set of books is used by the new partnership, prepare: 1. Adjusting entries on the books of Aquino and Yap. 2. Closing entries on the books of Aquino and Yap. 3. Journal entries in the books of the partnership to record the investments of Aquino and Yap and the withdrawal or additional investment of cash by Yap.PowerPain The new partnership is to take over the business assets and assumes business liabilities of the partners. Capitals of the partners are to be based on net assets invested after the following adjustments: I ] 4% of the accounts receivable of Aquino is estimated to be uncollectible while the accounts receivable of Yap is estimated to be 98% realizable. 2] Interest at 15% on notes receivable of Aquino dated April, 2013 should be accrued. 3] The merchandise inventory of Aquino should be valued at P120,000, while P18,000 of the inventory of Yap is considered worlhless. 1) 1/5 of the prepaid rent has expired. 5] The transportation equipment of Aquino is over depreciated by P12,000. 6] The computer equipment of Yap is to be valued at P515,000. 7] Interest at 10% on notes payable of Yap dated May 1, 2013 should be accrued. 8) Yap had office supplies on hand which have been charged to expense amounting to P8,000. These are still to be used by the partnership. 9] Accrued expense of P6,000 is to be recognized in the books of Aquino. The partnership agreement provides thal Aquino and Yap share profils and losses of 60% and 40% respectively. The partners further agreed to bring capital balances proportionate to their profit and loss ratio. The new capital of the partnership is based on adjusted capital of Aquino, so that Yap may either withdraw or invest additional cash.Exercise 1 On June 1, 2013, Kris Aquino and James Yap decided to pool their assets and form a partnership, to be known as Kampihan Na Partnership. Their statement of financial position on June 1, 2013 before the formation was as follows: Aquino Yap Cash P 198,000 P 316,800 Accounts receivable 1,296,000 1,440,000 Allowance for doubtful accounts (32,400) (36,000) Notes receivable 360,000 Merchandise inventory 115,200 108,000 Prepaid rent 36,000 Transportation equipment 720,000 Accumulated depreciation (72,000) Computer equipment 576,000 Accumulated depreciation (43,200] Total assets P 2,584,800 P 2,397,600 Accounts payable - trade P 36,000 P13,200 Notes payable 360,000 Capital 2,548,800 1,994,400 Total liabilities and capital P 2,584,800 P 2,397,600 Slide 13 al 20 H >
