Problem #8 Two Sole Proprietors Form a Partnership The business assets of Geron and Yumol appear below: Geron Yumol Cash P11000 P22354 Accounts Receivable 234536 567890 Inventories 120035 260102 Land 603000 Building 428267 Furniture and Fixtures 50345 34789 Other Assets 2000 3600 Total Accounts Payable P178940 P243650 Notes Payable 200000 345000 Geron, Capital 641976 Yumol, Capital 728352 Total P1020916 P1317002 Geron and Yumol agreed to form a partnership contributing their assets and equities subject to the following adjustment: a. Accounts receivable of P20000 in Geron's books and P35000 in Yumol's are uncollectible. b. Inventories of P5500 and P6700 are worthless in Geron's and Yumol's respective books. c. Other assets of P2000 for Geron and P3000 for Yumol are to be written off. Required: Prepare the journal entries for the formation of the partnership as at July 1. * Geron Cash 11000 Accounts Receivable 234536 Inventories 114535 Land 603000 Furniture and Fixtures 50345 Allowance for Uncollectible Accounts 20000 Accounts Payable 178940 Notes Payable 200000 Geron, Capital 614476 Yumol Cash 22354 Accounts Receivable 567890 Inventories 253402 Building 428267 Furniture and Fixtures 34789 Allowance for Uncollectible Accounts 35000 Accounts Payable 243650 Notes Payable 345000