PP 464 P1

Froilan Labausa Debit Credit

Cash 280,000.00
Inventory 510,000.00
Land 1,350,000.00
Labausa, Capital 1,790,000.00
Notes Payable 350,000.00

Rosalie Balhag
Cash 1,790,000.00
Balhag, Capital 1,790,000.00

Compound Journal Entry

Cash 2,070,000.00
Inventory 510,000.00
Land 1,350,000.00
Labausa, Capital 1,790,000.00
Balhag, Capital 1,790,000.00
Notes Payable 350,000.00
3,930,000.00 3,930,000.00

PP 464 P2
Gogola
Cash 1,260,000.00
Computer Equipment 360,000.00
Gogola, Capital 1,500,000.00
Notes Payable 120,000.00

Paglinawan
Cash 900,000
Paglinawan, Capital 900,000

TOTAL AGREED CAPITAL:

x= 900000 + 0.6x 900,000 represents Paglinawan's share of 40%. The 60% o
x-0.6x=900000 Substitute and transpose
0.4x=900000
x= 900000 / 0.4
x=2,250,000

GAGALO'S SUPPOSED CONTRIBUTION:

0.6 x 2250000= 1,350,000

Since Gagalo's initial investment of 1,500,000 was overstated, he should WITHDRAW amount
 1,500,000-1,350,000=150,000
Amount to Withdraw: 150,000

Gogola
Cash 1,110,000.00
Computer Equipment 360,000.00
Gogola, Capital 1,350,000.00
Notes Payable 120,000.00

Paglinawan
Cash 900,000
Paglinawan, Capital 900,000
inawan's share of 40%. The 60% of Gagalo is still unknown

ITHDRAW amount
Initial cash investment was deducted via withdrawal
PP 466 P4
Adjustments- Tolentino Marketing

a. Accounts Receivable
Accounts Receivable (Net) 144,000.00
Accounts Receivable (Agreed) 112,000.00
Increased Allowance 32,000.00

b. Accumulated Depreciation
Accumulated Depreciation (Net) 10,000.00
Accumulated Depreciation (Agreed) 20,000.00
Increased Accumulated Depreciation 10,000.00

c. Accounts Payable will be carried over

Increases and Decreases in Tolentino, Capital

Tolentino, Capital 352,000

Increase in Allowances for Uncollect. (32,000.00)
Increase in Accumulated Depreciation (10,000.00)
Tolentino, Capital (Adjusted) 310,000.00

Adjusting Entries- Tolentino Marketing

Tolentino, Capital 42,000.00

Allowances for Uncollectible Accounts 32,000.00
Accumulated Depreciation 10,000.00

Closing the Books- Tolentino Marketing

Accounts Payable 36,000.00

Allowance for Uncollectible Accounts 48,000.00
Accumulated Depreciation 20,000.00
Tolentino, Capital 310,000.00
Cash 4,000.00
Accounts Receivable 160,000.00
Inventory 200,000.00
Equipment 50,000.00
414,000.00 414,000.00

Opening the Partnership Books:

x=310000 +0.6x
x=310000 / 0.4
 x=775,000

Tan's Contribution to Partnership: 465,000

Opening Journal Entries:

Cash 469,000.00
Accounts Receivable 160,000.00
Inventory 200,000.00
Equipment 30,000.00
Accounts Payable 36,000.00
Allowance for Uncollectible Accounts 48,000.00
Tolentino, Capital 310,000.00
Tan, Capital 465,000.00
859,000.00 859,000.00
PP 467 P5
Adjustments- Medina

Medina Capital 105,200

Merchandise Inventory 105200
Land 68,000
Medina, Capital 68,000
Building 96000
Medina, Capital 96000
Medina, Capital 2,000
Accumulated Depreciation - OE 2,000
Repair Equipment 20,000
Medina, Capital 20,000
Notes Payable 60,000
Medina, Capital 60,000

Compounded Entry
Land 68,000.00
Building 96,000.00
Repair Equipment 20,000.00
Notes Payable 60,000.00
Medina, Capital 136,800.00
Merchandise Inventory 105,200
Accumulated Depreciation - OE 2,000
244,000.00 244,000

Adjustement for Notes Payable:

*60,000 will be transferred to Medina, Capital
Notes Payable 60,000.00
Medina, Capital 60,000.00

Closing- Medina

Medina, Capital 805,600.00

Allowance for Uncollectible Accounts 22,400.00
Accumulated Depreciation - Building 32,000.00
Accumulated Depreciation - OE 8,000.00
Accumulated Depreciation - RE 68,000.00
Accounts Payable 170,000.00
Notes Payable 60,000.00
Mortgage Payable 200,000.00
Cash 42,000.00
Accounts Receivable 389,200.00
Merchandise Inventory 356,400.00
Office Supplies 30,400.00
 Land 108,000.00
Building 224,000.00
Office Equipment 24,000.00
Repair Equipment 192,000.00
1,366,000.00 1,366,000.00

Adjustments- Dalangin
Merchandise Inventory 7200
Dalangin, Capital 7200

Dalangin, Capital 8,800

Accumulated Depreciation - OE 8,800

Compound Entry

Merchandise Inventory 7,200.00

Dalangin, Capital 1,600.00
Accumulated Depreciation - OE 8,800.00

Closing - Dalangin

Dalangin, Capital 431,200.00

Allowance for Uncollectible Accounts 14,400.00
Accumulated Depreciation - OE 22,000.00
Accounts Payable 111,600.00
Cash 30,000.00
Accounts Receivable 169,200.00
Merchandise Inventory 308,000.00
Prepaid Rent 6,000.00
Office Supplies 4,000.00
Office Equipment 62,000.00
579,200.00 579,200.00

Books of Partnership (Medina and Dalangin)

Cash 72,000.00
Accounts Receivable 558,400.00
Merchandise Inventory 664,400.00
Prepaid Rent 6,000.00
Office Supplies 34,400.00
Land 108,000.00
Building 192,000.00
Office Equipment 56,000.00
Repair Equipment 124,000.00
Allowance for Uncollectible Accounts 36,800.00
Accounts Payable 281,600.00
Notes Payable 60,000.00
Mortgage Payable 200,000.00
Medina, Capital 805,600.00
Dalangin, Capital 431,200.00
1,815,200.00 1,815,200.00
net: 96,000 Increase in building value: 96,000
agreed: 192000
net: 18,000 increase in accumulated depreciation: 2000
agreed: 16,000
net:104,000 increase in repair equipment: 20,000
agreed: 124000
Office Equipment Balance: 40,000

(Medina and Dalangin)

(Medina and Dalangin)
(Dalangin)
(Medina and Dalangin)
(Medina and Dalangin)
(Medina)
(Medina)
(Medina and Dalangin)
(Medina)
(Medina and Dalangin)
(Medina and Dalangin)
(1/2 of Medina) *1/2 was not assumed by the partnership (as per agreement)
(Medina)