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1) Medina's merchandise inventory is reduced by P105,200 and Dalangin's is increased by P7,200 through journal entries. 2) The fair market values of various assets are recorded, including adjustments to land, buildings, equipment, and capital accounts. 3) Half of Medina's notes payable are personal notes assumed by the partner. 4) Dalangin's prepaid rent of P6,000 is transferred to the partnership.

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114 views

Far 3 PDF Free

1) Medina's merchandise inventory is reduced by P105,200 and Dalangin's is increased by P7,200 through journal entries. 2) The fair market values of various assets are recorded, including adjustments to land, buildings, equipment, and capital accounts. 3) Half of Medina's notes payable are personal notes assumed by the partner. 4) Dalangin's prepaid rent of P6,000 is transferred to the partnership.

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junica casi�o
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© © All Rights Reserved
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Adjusting: To record adjustments

A. Medina’s merchandise inventory is to be reduced by P105,200. The inventory of Dalangin will be increased by P7,200.
DR Medina, Capital 105,200.00
CR Merchandise Inventory 105,200.00

DR Merchandise Inven. 7,200.00


CR Dalangin, Capital 7,200.00

B. The following are the FMV of the various assets:


Medina Dalangin
Land 108,000.00
Building 192,000.00
Office EQUIPMENT 16,000.00 40,000.00
Repair Equipment 124,000.00

DR Land 68,000.00
DR Medina, Capital 98,000.00
DR Repair Equipment 20,000.00
DR D, Capital 9,000.00
Office Equipment 2,000.00
Building 96,000.00
CR Medina, Capital 88,000.00
CR Office Equipment 9,000.00

C. One half of the notes payable of Medina are personal notes. All other liabilities of the partners are assumed by the partners
DR Medina's Drawings 60,000.00
CR Cash 60,000.00 *not sure*

D. The prepaid rent in the books of Dalangin will be consumed by partnership


DR. Prepaid Rent 6,000.00
CR Dalangin, Capital 6,000.00

Revaluation:
DR Cash 42,000.00
DR A/R 389,200.00
DR Merchandise Inven. 356,400.00
DR Office Supplies 30,400.00
DR Land 108,000.00
DR Building 192,000.00
DR Office Equipment 16,000.00
DR Repair Equipment 124,000.00
CR Accum Dep. - Building 32,000.00
CR Accum. Dep. - OE 6,000.00
CR Accum. Dep. - RE 68,000.00
CR Allowance for U.C 22,400.00
CR N/P 60,000.00
CR A/P 170,000.00
CR M/P 200,000.00
CR Medina, Capital 699,600.00

Closing the books:


CR Accum Dep. - Building 32,000.00
CR Accum. Dep. - OE 6,000.00
CR Accum. Dep. - RE 68,000.00
CR Allowance for U.C 22,400.00
CR N/P 60,000.00
CR A/P 170,000.00
CR M/P 200,000.00
CR Medina, Capital 699,600.00
DR Cash 42,000.00
DR A/R 389,200.00
DR Merchandise Inven. 356,400.00
DR Office Supplies 30,400.00
DR Land 108,000.00
DR Building 192,000.00
DR Office Equipment 16,000.00
DR Repair Equipment 124,000.00
To close the books of Medina
Opening:
DR Cash 42,000.00
DR A/R 389,200.00
DR Merchandise Inven. 356,400.00
DR Office Supplies 30,400.00
DR Land 108,000.00
DR Building 160,000.00
DR Office Equipment 10,000.00
DR Repair Equipment 56,000.00
CR Allowance for U.C 22,400.00
CR N/P 60,000.00
CR A/P 170,000.00
CR M/P 200,000.00
CR Medina, Capital 699,600.00
To record medina's investment

DR Cash 30,000.00
DR Accounts Receivable 169,200.00
DR Merchandise Inven. 308,000.00
DR Prepaid Rent 6,000.00
DR Office Supplies 4,000.00
Accounts Payable 111,600.00
Dalangin, Capital 6,000.00
reased by P7,200.

assumed by the partnerships.


(CAPITAL)

DR 1,258,000
CR 1, 258,000

DR 1,152,000

CR 1,152,000
Problem 2

Cash 1,260,000
Computer Equipm. 360,000
CR Notes Payable 120,000
Gogola, Capital 1,500,000

Cash 900,000
CR Paglinawan, Capital 900,000

Additional investment:

2,250,000*0.40 equal 900000

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