Problem 6

Adjusting Entries
Justin
Debit Credit
a. Justin, Capital ₱ 45,000
Merchandise Inventory ₱ 45,000

b. Justin, Capital ₱ 14,000

Allowance for Doubtful Accounts ₱ 14,000

c. Rent receivable ₱ 15,000

Justin, Capital ₱ 15,000

d.

e. Justin, Capital ₱ 2,000

Office Supplies ₱ 2,000

f. Justin, Capital ₱ 12,000

Accumulated Depreciation, OE ₱ 12,000

g.

h. Justin, Capital ₱ 1,800

Interest Payable ₱ 1,800

i.

Justin, Capital
₱ 519,000
₱ 45,000
₱ 14,000
₱ 15,000
₱ 2,000
₱ 12,000
₱ 1,800
₱ 74,800 ₱ 534,000
Adjusted Capital ₱ 459,200
net adjustment in the book ₱ 59,800 Debit
₱ 459,200

Closing Entries
Justin
 Debit Credit
Interest Payable ₱ 1,800
Allowance for Doubtful Accounts ₱ 28,000
Accumulated Depreciation, OE ₱ 60,000
Accounts Payable ₱ 250,000
Notes Payable ₱ 60,000
Justin, Capital ₱ 459,200
Rent Receivable ₱ 15,000
Cash ₱ 120,000
Accounts Receivable ₱ 280,000
Merchandise Inventory ₱ 300,000
Office Supplies ₱ 24,000
Office Equipment ₱ 120,000
₱ 859,000 ₱ 859,000

Contributed Should be percentage

Justin ₱ 459,200 40%
Kyle ₱ 548,147 60%
Total ₱ 1,007,347

Opening Entries (Partnership Bo

Cash ₱ 120,000
Accounts Receivable ₱ 280,000
Merchandise Inventory ₱ 300,000
Office Supplies ₱ 24,000
Office Equipment ₱ 60,000
Rent Receivable ₱ 15,000
Interest Payable ₱ 1,800
Allowance for Doubtful Accounts ₱ 28,000
Accounts Payable ₱ 250,000
Notes Payable ₱ 60,000
Justin, Capital ₱ 459,200
to record Justin's Investment in the partnership
₱ 799,000 ₱ 799,000

Justin and Kyle Partnership

Statement of Financial Position
Oct. 1, 2020

Assets
Cash ₱ 340,653
Accounts Receivable ₱ 490,000
Allowance for Doubtful Accounts ₱ 49,000 ₱ 441,000
Notes Receivable ₱ 60,000
Merchandise Inventory ₱ 700,000
Office Supplies ₱ 24,000
Offiece Equipment ₱ 60,000
Furniture and Fixtures ₱ 90,000
Rent Receivable ₱ 15,000
Interest Receivable ₱ 1,147
Patent ₱ 48,000
Total Assets ₱ 1,779,800

Liabilities and Capital

Interest Payable ₱ 1,800
Accounts Payable ₱ 560,000
Notes Payable ₱ 60,000
Salaries Payable ₱ 10,000
Total Liabilities ₱ 631,800

Justin, Capital ₱ 459,200

Kyle, Capital ₱ 688,800
Total Capital ₱ 1,148,000
Total Liabilities and Capital ₱ 1,779,800

Problem 14
Iram
Cash ₱ 250,000
Equipment ₱ 500,000
Notes Payable ₱ 150,000
Adjusting Entries
Kyle
Debit Credit
Kyle, Capital ₱ 20,000
Merchandise Inventory ₱ 20,000

Kyle, Capital ₱ 10,500

Allowance for Doubtful Accounts ₱ 10,500

Kyle, Capital ₱ 10,000

Salaries Payable ₱ 10,000

Interest Receivable ₱ 1,147

Kyle, capital ₱ 1,147

Kyle, Capital ₱ 22,500

Accumulated Depreciation, F&F ₱ 22,500

Patent ₱ 48,000
Kyle, Capital ₱ 48,000

Kyle, Capital
₱ 562,000
₱ 20,000
₱ 10,500
₱ 10,000
₱ 1,147
₱ 22,500
₱ 48,000
₱ 63,000 ₱ 611,147
₱ 548,147
₱ 13,853 Debit
₱ 548,147

Closing Entries
Kyle
 Debit Credit
Salaries Payable ₱ 10,000
Allowance for Doubtful Accounts ₱ 21,000
Accumulated Depreciation, F&F ₱ 60,000
Accounts Payable ₱ 310,000
Capital ₱ 548,147
Cash ₱ 80,000
Accounts Receivable ₱ 210,000
Notes Receivable ₱ 60,000
Interest Receivable ₱ 1,147
Merchandise Inventory ₱ 400,000
Furniture and Fixtures ₱ 150,000
Patent ₱ 48,000
₱ 949,147 ₱ 949,147

Agreed Capital Additional Investment

₱ 459,200
₱ 688,800 ₱ 140,653
₱ 1,148,000

Opening Entries (Partnership Book)

Cash ₱ 220,653
Accounts Receivable ₱ 210,000
Notes Receivable ₱ 60,000
Interest Receivable ₱ 1,147
Merchandise Inventory ₱ 400,000
Furniture and Fixtures ₱ 90,000
Patent ₱ 48,000
Salaries Payable ₱ 10,000
Allowance for Doubtful Accounts ₱ 21,000
Accounts Payable ₱ 310,000
Capital ₱ 688,800
to record Kyle's investment in the partnership
₱ 1,029,800 ₱ 1,029,800