Problem 1

On June 30, 2010, the Statement of Financial Position for the partnership of Cockroach, Madagascar and Parasite, together

with their respective profit and loss ratios, was as follows:

Assets, at cost P 180,000 Cockroach, Loan P 9,000 Cockroach, Capital (23%) 42,000 Madagascar, Capital (36%) 39,000 Parasite, Capital (41%) 90,000 Total P 180,000Cash Building - cost to [ones Building - fair value Inventory - cost to Smith Inventm-jyf - fair value Mortgage Payable Accounts Payable lanes P 00,000 300,000 400,000 120,000 Smith P 40.000 200,000 280,000 60,000 \fDebit Cash P 9,000 Receivable 15,000 Equipment 50.000 Other Assets 19.000 Liabilities Diva, Capital Bronx, Capital Service Revenue Supplies Expense 17.000 Utilities Expense 4.000 Salaries Expense 10.000 Miscellaneous Expenses 5:000 Credit P 17,000 30,000 40,000 50mm Total P 13?:000 P 137.000