Requirement 1

Leopoldo Medina
Adjusting Entries

Date
Account Titles and Explanation P.R. Debit

a L. Medina, Capital 4,750

Allowance for Bad Debts
To record the allowance for bad debts

b L. Medina, Capital 25,000

Merchandise Inventory
To record the adjustment of inventories

c Accumulated Depreciation-Store Equipment 90,000

L. Medina, Capital
To record the depreciation

d Prepaid Expenses 25,000

L. Medina, Capital 35,000
Accrued Rental
To record the accrued and prepaid expenses

Balance

Requirement 2 and 3
Capital, beginning 3,770,000.00
a - 4,750.00
b - 25,000.00
c 90,000.00
d - 35,000.00
Adjusted Capital of Medina ₱ 3,795,250.00
Cash contributed by Loqueloque ₱ 3,795,250.00

REQUIREMENT 4

CLOSING ENTRIES
 Date
Account Titles and Explanation P.R. Debit
YR-2020

Accounts Payable 450,000

Accrued Rent Payable 60,000
Accumulated Depreciation-Store Equipment 100,000
Allowance for Bad Debts 9,750
L. Medina, Capital 3,795,250
Cash
Accounts Receivable
Merchandise Inventory
Prepaid Expenses
Store Equipment
To close the books of Medina

Balance

OPENING ENTRIES

Date
Account Titles and Explanation P.R. Debit
YR-2020
Cash 1,050,000
Accounts Receivable 65,000
Merchandise Inventory 2,325,000
Prepaid Expenses 25,000
Store Equipment 850,000
Accounts Payable
Accrued Rent Payable
Allowance for Bad Debts
L. Medina, Capital
To record the contribution of Medina

Cash 3,795,250
L. Loqueloque, Capital
To record the contribution of Loqueloque

Balance
 GJ-2

Credit

4,750

25,000

90,000

60,000

GJ-2
Credit

1,050,000
65,000
2,325,000
25,000
950,000

GJ-2

Credit

450,000
60,000
9,750
3,795,250

3,795,250
 Name of Partnership
Statement if Financial Position
December 31, 20A

ASSETS
Current Assets
Cash 4,845,250
Accounts Receivable 65,000
Allowance for Bad Debts 9,750.00 55,250.00
Merchandise Inventory 2,325,000
Prepaid Expenses 25,000
Total Current Assets ₱ 7,250,500.00

Non-Current Assets
Store Equipment 850,000
Total Non-Current Assets ₱ 850,000.00

TOTAL ASSETS ₱ 8,100,500.00

LIABILITIES AND EQUITY

Liabilities
Accounts Payable 450,000
Accrued Rent Payable 60,000
Total Liabilities ₱ 510,000.00

Equity
L. Medina, Capital 3,795,250.00
L. Loqueloque, Capital 3,795,250.00
Total Equity ₱ 7,590,500.00

TOTAL LIABILITIES AND EQUITY ₱ 8,100,500.00

Requirement 1

Geron Books
Adjusting Entries

Date
Account Titles and Explanation P.R. Debit

a Geron, Capital 20,000

Allowance for Bad Debts
To record the allowance for bad debts

b Geron, Capital 5,500

Merchandise Inventory
To record the adjustment of inventories

c Geron, Capital 2,000

Other Assets
To record the other assets written off.

Balance

Yumol
Adjusting Entries

Date
Account Titles and Explanation P.R. Debit

a Yumol, Capital 35,000

Allowance for Bad Debts
To record the allowance for bad debts

b Yumol, Capital 6,700

Merchandise Inventory
To record the adjustment of inventories

c Yumol, Capital 3,600

Other Assets
To record the other assets written off.
 Balance

Requirement 2 Geron
Capital, beginning 641,976
a - 20,000
b - 5,500
c - 2,000
Adjusted Capital ₱ 614,476.00

REQUIREMENT 4

GERON BOOKS
CLOSING ENTRIES

Date
Account Titles and Explanation P.R. Debit
YR-2020
Accounts Payable 178,940
Notes Payable 200,000
Allowance for Bad Debts 20,000
Geron, Capital 614,476
Cash
Accounts Receivable
Merchandise Inventory
Land
Furnitures and Fixtures
To close the books of Geron

Balance

YUMOL BOOKS
CLOSING ENTRIES

Date
Account Titles and Explanation P.R. Debit
YR-2020
Accounts Payable 243,650
Notes Payable 345,000
Allowance for Bad Debts 35,000
Yumol, Capital 683,052
Cash
Accounts Receivable
Merchandise Inventory
Building
Furnitures and Fixtures
To close the books of Yumol

Balance
 OPENING ENTRIES

Date
Account Titles and Explanation P.R. Debit
YR-2020
Cash 11,000
Accounts Receivable 234,536
Merchandise Inventory 114,535
Land 603,000
Furnitures and Fixtures 50,345
Accounts Payable
Notes Payable
Allowance for Bad Debts
Geron, Capital
To record the contribution of Geron

Cash 22,354
Accounts Receivable 567,890
Merchandise Inventory 253,402
Building 428,267
Furnitures and Fixtures 34,789
Accounts Payable
Notes Payable
Allowance for Bad Debts
Yumol, Capital
To record the contribution of Yumol

Balance
Credit

20,000

5,500

2,000

Credit

35,000

6,700

3,600
 Yumol
728,352
- 35,000
- 6,700
- 3,600
₱ 683,052.00

GJ-2

Credit

11,000
234,536
114,535
603,000
50,345

GJ-2

Credit

22,354
567,890
253,402
428,267
34,789
 GJ-2

Credit

178,940
200,000
20,000
614,476

243,650
345,000
35,000
683,052
 Name of Partnership
Statement if Financial Position
December 31, 20A

ASSETS
Current Assets
Cash 33,354
Accounts Receivable 802,426
Allowance for Bad Debts 55,000.00 747,426.00
Merchandise Inventory 367,937
Total Current Assets ₱ 1,148,717.00

Non-Current Assets
Land 603,000.00
Building 428,267.00
Furnitures and Fixtures 85,134
Total Non-Current Assets ₱ 1,116,401.00

TOTAL ASSETS ₱ 2,265,118.00

LIABILITIES AND EQUITY

Liabilities
Accounts Payable 422,590
Notes Payable 545,000
Total Liabilities ₱ 967,590.00

Equity
Geron, Capital 614,476.00
Yumol, Capital 683,052.00
Total Equity ₱ 1,297,528.00

TOTAL LIABILITIES AND EQUITY ₱ 2,265,118.00