Espanol operated a specialty shop that sold fishing equipment and acc

Cash
Accounts Receivable
Allowance for Uncollectible Accounts
Inventory
Equipment
Accumulated Depreciation
Accounts Payable
Espanol, Capital

Espanol plans to enter into a partnership with trusted associate, Quino

is to transfer all assets and liabilities of her shop to the partnership afte

Quino will invest cash equal to Espanol's investment after revaluation.

Inventory, P460,000; and equipment (net), P124,000. The partnership

Prepare the opening journal entries in the books of the partnership

Prepare the partnership's statement of financial position as at the date

AJE AR 6,000.00
CAPITAL 6,000.00

INVENTORY 20,000.00
CAPITAL 20,000.00
EQUIPMENT 64,000.00
CAPITAL 64,000.00
ng equipment and accessories. Her post-closing trial balance on December 31, 2018 is a

Debit Credit Adjustment

36,000.00 -
150,000.00 6,000.00
16,000.00 -
440,000.00 20,000.00
135,000.00 64,000.00
75,000.00 -
30,000.00 -
640,000.00 90,000.00
761,000.00 761,000.00

sted associate, Quino, effective January 1, 2019. Profits or loss will be shared equally. E
o the partnership after revaluation.

ent after revaluation. The agreed values are as follows: accounts receivable (net), P140
000. The partnership will operate under the business name of Fish R' Us.

of the partnership

osition as at the date of formation of the partnership

BOOKS OF T
Espanol

AR, Unadjuste 150,000.00 Cash

AUA 16,000.00 Accounts Receivable
Net AR, Unadj 134,000.00 Inventory
Agreed 140,000.00 Equipment
(6,000.00)
 Quino
Equip, Unadjus 135,000.00 Cash
AD 75,000.00
Net Equip, Una 60,000.00
Agreed 124,000.00
(64,000.00)

STATEM

Cash
Accounts Receivable
Inventory
Equipment

Accounts Payable
Espanol, Capital
Quino, Capital
ber 31, 2018 is as follows:
Adjusted
Debit Credit
36,000.00
140,000.00
-
460,000.00
124,000.00

30,000.00
730,000.00
760,000.00 760,000.00

hared equally. Espanol

able (net), P140,000;

BOOKS OF THE PARTNERSHIP

36,000.00
Receivable 140,000.00
460,000.00
124,000.00
Accounts Payable 30,000.00
Espanol, Capital 730,000.00
 730,000.00
Quino, Capital 730,000.00

STATEMENT OF FINANCIAL POSITION

ASSETS
766,000.00
eceivable 140,000.00
460,000.00
124,000.00
Total Assets 1,490,000.00

LIABILITIES & CAPITAL

30,000.00
730,000.00
730,000.00
Total Liabilities & Capital 1,490,000.00