Muli, John Jirel N.

BSA-104

Solution:
March 01
Cash 80,000
Merchandise 70,000
Account Receivable 50,000
Allowance for Bad Debts 10,000
Reyes Capital 190,000
Cash 40,000
Furniture 75,000
Ortiz Capital 115,000

May 01
Equipment 210,000
Notes Payable 75,000
Flores Capital 135,000

May 31
Cash 130,000
Ortiz Capital 55,000
Flores Capital 75,000
A. In parallel column, list down the assets and liabilities, at fair values, contributed by each partner and
determine each partner’s contribution.

Reyes, Ortiz, Flores Best Pizza

Statement of Financial Position
May 31,2019

ASSET REYES ORTIZ FLORES TOTAL

CASH 80,000 40,000 - 120,000
MERCHANDISE 70,000 - - 70,000
ACC.RECEIVABLE 50,000 - - 50,000
ALLOWANCE FOR (10,000) - - (10,000)
BAD DEBTS
FURNITURE - 75,000 -
COOKING - - 210,000 210,000
EQUIPMENT

NOTES PAYABLE - - 75,000 75,000

CAPITAL 190,000 115,000 135,000 440,000

ADD. CASH 0 75,000 55,000 130,000

INVESTMENT
CAPITAL 190,000 190,000 190,000 570,000

B.Who should make additional cash investments and at what amount?

Ortiz and Flores. Ortiz additional investment of 75,000 and Flores additional investment of 55,000. The
total additional investment is 130,000.