BOOKS OF CAROL CARINO

Adjustment Entry
Carol Carino, Capital 84,000
Accumulated Depreciation 10,000
Merchandise inventory 50,000
Utilities Payable 4,000
Allowance for Doubtful Accounts 40,000
To record adjustment to restate
Carol Carino's Capital

Closing Entry
Accounts Payable 110,000
Utilities Payable 4,000
Allowance for Doubtful Accounts 50,000
Accumulated Depreciation 70,000
Carol Carino, Capital 1,716,000
Cash 100,000
Accounts Receivable 500,000
Merchandise Inventory 950,000
Equipment 400,000
To close the books of Carol Carino

BOOKS OF NORIE CRUZ

Adjustment Entry
Norie Cruz, Capital 74,500
Merchandise Inventory 50,000
Prepaid Insurance 100,000
Utilities Payable 2,500
Allowance for Doubtful Accounts 22,000
To record adjustment to restate
Norie Cruz' Capital

Closing Entry
Utilities Payable 82,500
Allowance for Doubtful Accounts 42,000
Norie Cruz, Capital 1,325,500
Cash 80,000
Accounts Receivable 420,000
Merchandise Inventory 950,000
To close the books of Norie Cruz

BOOKS OF PARTNERSHIP
Cash 100,000
Accounts Receivable 500,000
Merchandise Inventory 950,000
Equipment 400,000
Accounts Payable 110,000
Utilities Payable 4,000
Allowance for Doubtful Accounts 50,000
Accumulated Depreciation 70,000
Carol Carino, Capital 1,716,000
To record the investmet of Carol
Carino

Cash 80,000
Accounts Receivable 420,000
Merchandise Inventory 950,000
Utilities Payable 82,500
Allowance for Doubtful Accounts 42,000
Norie Cruz, Capital 1,325,500
To record the investmet of Norie
Cruz

BALANCE SHEET
Carie Boutique
Statement of Financial Position
January 2,2000

ASSETS
Cash 180,000
Accounts Receivable 920,000
Less: Allowance for Doubtful Acc 92,000 828,000
Merchandise Inventory 1,900,000
Equipment 400,000
Less: Accumulated Depreciation 70,000 330,000
TOTAL ASSETS 3,238,000

LIABILITIES AND OWNERS' EQUITY

Accounts Payable 110,000
Utilities Payable 86,500
Carol Carino, Capital 1,716,000
Norie Cruz, Capital 1,325,500
TOTAL LIABILITIES AND EQUITY 3,238,000