Required:

- Journal entry for the adjustments

- Cash to be invested by Prieto

- Prepare a journal entry in the partnership books to record the cash investment of Prieto including the bonus capital for Solis.

12. Max Solis has successfully operated Star News for a number of years. He wants to Mary Prieto to join him on July 1. A post closing trial balance of his business showed the expand the newspaper publishing business but he would need more capital, c) Prepare a journal entry in the partnership books to record the cash so he invited Credit following: Debit P 170,000 500,000 75,000 10,000 35,000 5,000 Cash Accounts Receivable Supplies Inventory Prepaid Insurance Furniture & Fixtures Accumulated Depreciation Printing Equipment 500,000 Accumulated Depreciation 120,000 Accounts Payable 350,000 Solis, Capital 815.000 P1.290,000 P1.290,000 It was agreed that the above assets and liabilities be adjusted as follows: 1. The allowance for bad debts should be 15% of the accounts receivable after writing off bad accounts of P50,000. 2. The market value of the supplies is only 80% of its cost. 3. The market value of the furniture and equipment is P25,000. 4. Accrued taxes of P5,000 should be recognized 5. The radio equipment is estimated to have a market value lower by P80,000. The partnership will be called the Philippine Star Balita with Prieto investing cash to make the agreed capital P1,000,000. It was further agreed that Prieto will be given a 40% interest in the firm. Direction: a) Prepare a journal entry to record in the partnership books Solis' adjusted assets and liability contributions. b) Determine Prieto's actual cash investment and her agreed capital credit investment of Prieto including the bonus capital for Solis. Marlo operates a sole proprietorshin hun followin