Problem 1: JOURNAL ENTRIES

Page Number:
DATE DESCRIPTION PR DEBIT CREDIT
A. Adriano, Capital 60,000
Accounts Receivable
To record the 60,000 worthless 60,000

adjustment

B. Adriano, Capital 17,000

Allowance for doubtful accounts 17,000
To record the uncollectible accounts

C. Adriano, Capital 85,500

Merchandise Inventory 85,500
To record the sold merchandise

D. Equipment 75,000
Adriano, Capital 75,000
To record the used equipment

ADRIANO PROPRIETORSHIP

Adjusted Trial Balance

ACCOUNTS TITLES DEBIT CREDIT
Cash 150,000
Accounts Receivable 1,530,000
Accounts for Uncollectible accounts 114,000
Merchandise Inventory 914,500
Equipment 1,625,000
Accumulated Depreciation - Equipment 1,000,000
Adriano, Capital 3,105,500
Total ₱ 4,219,500 ₱ 4,219,500
 CLOSING JOURNAL ENTRIES
Page Number: _
DATE DESCRIPTION PR DEBIT CREDIT
Allowances for doubtful accounts 114,000
Accumulated Depreciation – Equipment 1,000,000
Adriano, Capital 3,105,500
Cash 150,000
Accounts Receivable 1,530,000
Merchandise Inventory 914,500
Equipment 1,625,000
To close the book of
proprietorship

DATE DESCRIPTION PR DEBIT CREDIT

Cash 150,000
Accounts Receivable 1,530,000
Merchandise Inventory 914,5000
Equipment 1,625,000
Allowances for Doubtful 114,000
Accounts
Adriano, Capital 3,105,500
To record Adriano’s
investment
 PROBLEM 2: JOURNAL ENTRIES
Page Number:
DATE DESCRIPTION PR DEBIT CREDIT

A. Tolentino, Capital 32,000

Allowance for doubtful accounts 32,000
To record the adjustments on accounts
receivable

B. Tolentino, Capital 20,000

Accumulated Depreciation – Equipment 20,000
To record the increase accumulated
depreciation on the equipment

CLOSING JOURNAL ENTRIES

DATE DESCRIPTION PR DEBIT CREDIT

Accounts Payable 36,000
Accumulated Depreciation – Equipment 20,000
Allowance for Uncollectible Accounts 48,000
Tolentino, Capital 310,000
Cash 4,000
Accounts Receivable 160,000
Inventory 200,000
Equipment 50,000
To close the book of
Tolentino Proprietorship
 Page Number: _
DATE DESCRIPTION PR DEBIT CREDIT
Cash 4,000
Accounts Receivable 160,000
Inventory 200,000
Equipment 30,000
Allowance for Uncollectible 48,000
Accounts
Accounts Payable 36,000
Tolentino, Capital 310,000
To record the investment of
Tolentino

Cash 465,000
Tan, Capital 465,000
To record Tan’s Investment
 PROBLEM 3: JOURNAL ENTRIES
Page Number:
DATE DESCRIPTION PR DEBIT CREDIT
Allowance for doubtful accounts 6,000
Espanol, Capital 6,000
To record the adjustment of net
realizable value

Inventory 20,000
Espanol, Capital 20,000
To record the increase and adjust
inventory

Equipment 64,000
Espanol, Capital 64,000
To record and adjust the equipment

FISH
Adjusted Trial Balance
December 31, 2014

ACCOUNTS TITLES DEBIT CREDIT

Cash 36,000
Accounts Receivable 150,000
Accounts for Uncollectible accounts 10,000
Inventory 460,000
Equipment 199,000
Accumulated Depreciation 75,000
Accounts Payable 30,000
Espanol, Capital 730,000
845,000 845,000
 CLOSING JOURNAL ENTRIES
Page Number: _
DATE DESCRIPTION PR DEBIT CREDIT
2014
December 31 Allowance for Uncollectible accounts 10,000
Accumulated Depreciation 75,000
Accounts Payable 30,000
Espanol, Capital 730,000
Cash 36,000
Accounts Receivable 150,000
Equipment 199,000
Inventory 460,000
To close the book of
Espanol’s Proprietorship
 PROBLEM 4: JOURNAL ENTRIES
Page Number:
DATE DESCRIPTION PR DEBIT CREDIT
2015
October 31 Cash 117,000
Accounts Receivable 265,000
Inventory 811,000
Property and Equipment 1,809,000
Accounts Payable 327,000
Accrued Expenses 36,000
Notes Payable 750,000
Apalisoc, Capital 926,000
Tuddao, Capital 963,000
To record the initial investment of
Apalisoc and Tuddao capital to the business

Account Tittles Apalisoc’s Business Tuddao’s Business Partnership

Cash 37,000 80,000 117,000
Accounts Receivable 202,000 63,000 265,000
Inventory 460,000 351,000 811,000
Property and Equipment 1,235,000 574,000 1,809,000
Accounts Payable (236,000) (91,000) 327,000
Accrued Expenses (22,000) (14,000) 36,000
Notes Payable (750,000) (0) 750,000
Apalisoc, Capital 926,000 926,000
Tuddao,Capital 963,000 963,000
 APALISOC AND TUDDAO PARTNERSHIP
Statement of Financial Position
October 31, 2015
(IN PHILIPPINE PESO)
ASSETS
Current
Cash 117,000
Accounts Receivable 265,000
Inventory 811,000
Total Current Assets 1,193,000
Non-Current
Property and Equipment 1,809,000
Total Assets 3,002,000

LIABILITIES AND EQUITY

Current
Accounts Payable 327,000
Accrued Expenses 36,000
Total Current Liabilities 363,000
Non-Current
Notes Payable 750,000
Total Liabilities 1,113,000

OWNER’S EQUITY
Apalisoc, Capital 926,000
Tuddao, Capital 963,000
Total Equity 1,889,000

Total LIABILITIES and EQUITY 3,002,000