CAYABYAB, LHEA MAE O.

BSA1
EXERCISE 2.3

ADJUSTING ENTRIES:
a. DR CR
Amores, Capital ₱25,000
Allowance for Uncollectible Accounts ₱25,000
b. Merchandise Inventory 160,000
Amores, Capital 160,000
c. Prepaid Expenses 72,000
Amores, Capital 30,000
Accounts Payable 102,000

2 ACCOUNTS DR CR
CASH ₱208,000
ACCOUNTS RECEIVABLE 460,000
MERCHANDISE INVENTORY 1,600,000
PREPAID EXPENSES 72,000
ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS ₱25,000
ACCOUNTS PAYABLE 598,000
AMORES, CAPITAL 1,717,000

ENTRY FOR ANDRADE CAPITAL:

DR CR
CASH 1,717,000
ANDRADE, CAPITAL 1,717,000
 Amores, Capital
DR CR
25,000 1,612,000
30,000 160,000
55,000 1,772,000
1,717,000
Balance of Amores Capital

AMORES AND ANDRADE

STATEMENT OF FINANCIAL POSITION
January 01, 2014

ASSETS
Cash ₱1,925,000
Accounts Receivable ₱460,000
Less: Allowance for Uncollectible Acco 25,000 435,000
Merchandise Inventory 1,600,000
Prepaid Expenses 72,000
TOTAL ASSETS ₱4,032,000

LIABILITIES AND CAPITAL

Accounts Payable 598,000
Amores, Capital 1,717,000
Andrade, Capital 1,717,000 3,434,000
TOTAL LIABILITIES AND CAPITAL ₱4,032,000