PROBLEM 1

Cash 280,000
Merchandise Inventory 510,000
Land 1,350,000
Note Payable 350,000
Labausa, Capital 2,140,000
To record investment of Labausa

Cash 2,140,000
Balhag, Capital
To record investment of Balhag 2,140,000

PROBLEM 3

Cash 1,260,000
Computer Equipment 360,000
Notes Payable 120,000
Gagola, Capital 1,500,000 0.60

Cash 900,000
Paglinawan, Capital 900,000 0.40

Answer: Should make an additional investment of 100,000

Cash 100,000
Paglinawan, Capital 100,000

PROBLEM 8
GERON YUMOL

Cash 11,000 22,354

Accounts Receivable 234,536 567,890
Inventories 114,535 253,402
Land 603,000 -
Building - 428,267
Furniture and Fixtures 50,345 34,789
ADA 20,000 35,000
Accounts Payable 178,940 243,650
Notes Payable 200,000 345,000
Geron, Capital 614,476
Yumol, Capital 683,052

ADJUSTMENTS
a. Geron, Capital 20,000
ADA 20,000
Yumol, Capital 35,000
ADA 35,000

b. Geron, Capital 5,500

Inventory 5,500

Yumol, Capital 6,700

Inventory 6,700

c. Geron, Capital 2,000 3,600

Other Assets 2,000 3,600

PROBLEM 4

Cash 300,000
Land 280,000
Calaguas, Capital 750,000
To record investment of Calaguas

Cash 100,000
Building 520,000
Mortgage Payable 400,000
Dela Cruz, Capital 220,000
To record investment of Dela Cruz

PROBLEM 5
Unadjusted Adjustments
Dr. Cr. Dr. Cr.
Cash 36,000
A/R 150,000
ADA 16,000 6,000
Inventory 440,000 20,000
Equipment 135,000
Accumulated Depreciation 75,000 64,000
Accounts Payable 30,000
Espanol, Capital 640,000 90,000

Journal Entry
Cash 36,000
A/R 140,000
Inventory 460,000
Equipment 124,000
Accounts Payable 30,000
Espanol, Capital 730,000

Cash 730,000
Quino, Capital 730,000
PROBLEM 6

BOOKS OF TOLENTINO

Tolentino, Capital 42,000

ADA 32,000
Accumulated Depreciation 10,000
To record adjustments in the books of Tolentino

Tolentino, Capital 310,000

Accounts Payable 36,000
ADA 48,000
Accumulated Depreciation 20,000
Cash 4,000
A/R 160,000
Inventory 200,000
Equipment 50,000
To close the books of Tolentino

BOOKS OF PARTNERSHIP
Cash 4,000
A/R 160,000
Inventory 200,000
Equipment 30,000
ADA 48,000
Accounts Payable 36,000
Tolentino, Capital 310,000 40% 775,000
60%
Cash 465,000 465,000
Tan, Capital 465,000
 2,500,000
- 1,500,000
1,000,000

GERON YUMOL
641,976 728,352
- 20,000 - 35,000
- 5,500 - 6,700
 - 2,000 - 3,600
614,476 683,052

Adjusted
Dr. Cr.
36,000
150,000
10,000
460,000
135,000
11,000
30,000
730,000