Sheet1

Bobby Adjustment Balances Cobby

Cash 84,000 84,000 126,000
AR 63,000 63,000 105,000
Allowance BD (1) -6,300 -6,300
Inv 157,500 (2) -31,500 126,000 52,500
Equipment 63,000
Allowance for Dep (3) -21,000
Prepaid Expense (4) 8,400 8,400
Accounts Payable -21,000 (5) -21,000
Accrued Expense Payable

Bobby, Capital 283,500 -29,400 254,100

Cobby, Capital 325,500

ADJUSTING ENTRIES

Prepaid Expense 8,400

Bobby, Capital 29,400 Cobby, Capital
Allowance BD 6,300
Inventory 31,500

CLOSING ENTRIES

Allowance BD 6,300
Accounts Payable 21,000
Bobby, Capital 254,100
Cash 84,000
AR 63,000
Inventory 126,000
Prepaid Expense 8,400

Partnership books
To record Bobby’s Investment To record Cobby’s Investment

Cash 84,000
AR 63,000
Inventory 126,000
Prepaid Expense 8,400
Allowance BD 6,300
Accounts Payable 21,000
Bobby, Capital 254,100

Book Balances

Bobby and Cobby Partnership

Statement of Financial Position

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Assets Liabilities & Owners’ Equity

Cash 210,000 Liabilities
Accounts Receivable 168,000 Accounts Payable
Allowance for BD -16,800 Accrued Expense Payable
Inventory 168,000
Prepaid Expense 8,400 Owners’ Equity
Equipment 63,000 Bobby, Capital
Accumulated Depreciation -29,400 Cobby, Capital
Total Assets 571,200
Total Liabilities & Owners’ Equity

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Adjustment Balances
126,000
105,000
-10,500 -10,500
-10,500 42,000
63,000
-8,400 -29,400

-6,825 -6,825

-36,225 289,275

Allowance BD 10,500
36,225
Inventory 10,500
Accumulated Dep 8,400
Accrued Expense Payable 6,825

Allowance BD 10,500
Accumulated Dep 29,400
Accrued Expense Payable 6,825
Cobby, Capital 289,275
Cash 126,000
AR 105,000
Inventory 42,000
Equipment 63,000

ecord Cobby’s Investment

Cash 126,000
AR 105,000
Inventory 42,000
Equipment 63,000
Allowance BD 10,500
Accumulated Dep 29,400
Accrued Expense Payable 6,825
Cobby, Capital 289,275

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21,000
6,825
27,825

254,100
289,275
543,375
571,200

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