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  • Opening Entries (Partnership Books) : (80 000 X 10%) Decrease in Allowance 72 000

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    1) Case 1 summarizes the opening entries for a partnership, recording the partners' capital contribution of $80,000 after accounting for a $30,000 mortgage on a building valued at $100,000. 2) Case 2 records the purchase of a truck for $16,000 and a garage for $55,000, totaling $79,000. 3) Case 3 shows the capital accounts of two partners, Efren Awayan and Bayani Nadua. Adjusting entries are made to Efren's accounts to reduce accounts receivable by $8,000 and inventory by $5,000. Adjustments are also made to Bayani's accounts to reduce accounts rece

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    Case 1

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    1) Case 1 summarizes the opening entries for a partnership, recording the partners' capital contribution of $80,000 after accounting for a $30,000 mortgage on a building valued at $100,000. 2) Case 2 records the purchase of a truck for $16,000 and a garage for $55,000, totaling $79,000. 3) Case 3 shows the capital accounts of two partners, Efren Awayan and Bayani Nadua. Adjusting entries are made to Efren's accounts to reduce accounts receivable by $8,000 and inventory by $5,000. Adjustments are also made to Bayani's accounts to reduce accounts rece

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    141 views3 pages

    Opening Entries (Partnership Books) : (80 000 X 10%) Decrease in Allowance 72 000

    Uploaded by

    AAAAA
    1) Case 1 summarizes the opening entries for a partnership, recording the partners' capital contribution of $80,000 after accounting for a $30,000 mortgage on a building valued at $100,000. 2) Case 2 records the purchase of a truck for $16,000 and a garage for $55,000, totaling $79,000. 3) Case 3 shows the capital accounts of two partners, Efren Awayan and Bayani Nadua. Adjusting entries are made to Efren's accounts to reduce accounts receivable by $8,000 and inventory by $5,000. Adjustments are also made to Bayani's accounts to reduce accounts rece

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 3

    Case 1:

    Opening Entries (Partnership Books)


    Cash 10 000
    Building 100 000
    Mortgage Payable 30 000
    Partnership Capital 80 000
    To record partner’s capital balance

    Case 2:
    Cash $ 8 000
    Truck $ 16 000
    Garage $ 55 000
    $ 79 000

    Case 3:

    Efren Awayan Bayani Nadua


    Cash 150 000 Cash 120 000
    A/R 80 000 A/R 95 000
    Merchandise 130 000 Merchandise 180 000

    Adjusting Entry:
    Efren Awayan

    1. A, Capital 8 000
    Allow. for Doubtful Accts. 8 000
    #
    A/R net per book 80 000 (overvalued)
    A/R as agreed 8 000
    (80 000 x 10%)
    Decrease in allowance 72 000

    2. A, Capital 5 000
    Merchandise 5 000
    #
    Merch. per book 130 000 (overvalued)
    Merch. as agreed 125 000
    Decrease in inventory 5 000
    3. Prepaid Insurance 15 000
    A, Capital 15 000
    #
    Adjusting Entry:
    Bayani Nadua

    1. N, Capital 14 250
    Allow. for Doubtful Accts. 14 250
    #
    A/R net per book 95 000(overvalued)
    A/R as agreed 14 250
    (95 000 x 15%)
    Decrease in allowance 80 750

    2. N, Capital 10 000
    Merchandise 10 000
    #
    Merch. per book 180 000
    Merch. as agreed 170 000
    Decrease in inventory 5 000

    3. N, Capital 10 000
    Accrued expense 10 000
    #
    Computation:
    Efren Awayan, Capital Account Bayani Nadua, Capital Account
    Debit Credit Debit Credit
    8 000 15 000 14 250 395 000
    5 000 360 000 10 000
    13 000 375 000 10 000
    362 000 34 250 395 000
    360 750

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