12-30

PROBLEM 3

Per Books/Ledger Per Agreed Adjustments

Trial Balance/Financial Values
Statement
Accounts Receivable P 150,000 P 150,000 0

Less: Allowance for P 16,000 P 10,000 (P 6,000) - decrease

Uncollectible Accounts
Book Value/Net Value P 134,000 P 140,000 P 6,000 - increase

Inventory P 440,000 P 460,000 P 20,000 - increase

Equipment P 135,000 P 135,000 0

Less: Accumulated P 75,000 P 11,000 (P 64,000) - decrease

Depreciation
Book Value/Net Value P 60,000 P 124,000 P 64,000 - increase

Books of Espanol

A.) Allowance for Uncollectible Accounts P 6,000

Espanol, Capital P 6,000

B.) Inventory P 20,000

Espanol, Capital P20,000

C.) Accumulated Depreciation P 64,000

Espanol, Capital P64,000

Closing Entries

Allowance for Uncollectible Accounts P 10,000

Accumulated Depreciation P 11,000
Accounts Payable P 30,000
Espanol, Capital P 730,000
Cash P 36,000
Accounts Receivable P 150,000
Inventory P 460,000
Equipment P 135,000
To close the Sole Proprietorship
Cash P 36,000
Accounts Receivable P 150,000
Inventory P 460,000
Equipment P 124,000
Allowance for Uncollectible Accounts P 10,000
Accounts Payable P 30,000
Espanol, Capital P 730,000
To record the Investment of Espanol
Initial Investment

___________________________________________________________________________

Fish R Us
Statement of Financial Position
Jan 2019

ASSETS

Cash P 766,000
Accounts Receivable P 150,000
Less: Allowance for Uncollectible Accounts 10,000 P 140,000
Inventory 460,000
Equipment 124,000
TOTAL ASSETS P 1,490,000

LIABILITIES AND EQUITY

Accounts Payable P 30,000

Espanol, Capital 730,000
Selisana, Capital 730,000
TOTAL LIABILITIES & OWNER’s EQUITY P 1,490, 000