Professional Documents
Culture Documents
Steve Guy
Health Store Beauty Salon
Cash 25,000 11,000
Accounts Receivable 25,000
Merchandise Inventory 80,000
Supplies Inventory 15,000 25,000
Furniture and Equipment 50,000 85,000
Total Assets 195,000 121,000
ADJUSTMENTS:
A. Books of Steve Health Store
a. Steve, Capital 5,000
Allowance for Bad Debts 5,000
ANSWERS
a) List down the adjusted assets and liabilities of each partner to determine
partner's capital.
CLOSING:
A. Adjustments of Steve Health Store
Allowance for Bad Debts 5,000
Accounts Payable 20,000
Notes Payable 30,000
Interest Payable 2,500
Steve, Capital 112,500
Cash 25,000
Accounts Receivable 25,000
Merchandise Inventory 70,000
Supplies Inventory 15,000
Furniture and Equipment 35,000
STEVE GUY
Steve, Capital Guy, Capital
5000 145000 15000 116,000
15000 10000
10000 2500
2500 27500 116,000
32500 145000 88,500
112500
Steve Guy
Health Store Beauty Salon
Cash 25,000 11,000
Accounts Receivable 25,000
Allowance for Bad Debts (5,000)
Merchandise Inventory 70,000
Supplies Inventory 15,000 15,000
Furniture and Equipment 35,000 70,000
Total Assets 165,000 96,000
b) To comply with an agreed equity of P100,000 for each partner, show the
additional cash to be invested or cash to be withheld by a partner.
Cash 11,500
Guy, Capital 11,500
c) Prepare two entries to record the investments of the partners in the partnership
books.
Cash 12,500
Accounts Receivable 25,000
Merchandise Inventory 70,000
Supplies Inventory 15,000
Furniture and Equipment 35,000
Allowance for Bad Debts 5,000
Accounts Payable 20,000
Notes Payable 30,000
Interest Payable 2,500
Steve, Capital 100,000
Cash 22,500
Supplies Inventory 15,000
Furniture and Equipment 70,000
Accounts Payable 5,000
Interest Payable 2,500
Guy, Capital 100,000
ASSETS
Current Assets
Cash 35,000
Accounts Receivable 25,000
Allowance for Bad Debts (5,000)
Merchandise Inventory 70,000
Supplies Inventory 30,000 155,000
Non-current Assets
Furniture and Equipment 105,000
Total Assets 260,000
e) Change the agreement listed in b) if instead of cash method, they agreed to use
the bonus method to comply with the required P100,000 equity for each partner.
Prepare the third entry to record the bonus capital.