DBM Cash 700,000.

00
MGX House and Lot 2,187,500.00
SPV Industry/Service

Cash 700,000.00
DBM, Capital 700,000.00

Land and Building 2,187,500.00

MGX, Capital 2,187,500.00

SPV will contribute his skills and knowledge with 20% share in the partnership profits.

2a
Cash 875,000.00
Equipment 4,375,000.00
JVC, Capital 5,250,000.00

Land 7,875,000.00
Mortgage Payable 3,500,000.00
KRX, Capital 4,375,000.00

b
Land 7,875,000.00
KRX, Capital 7,875,000.00

3
Adjust the books of JPB

JPB, Capital 14,700.00

Allowance for Doubtful Accounts

Merchandise Inventory
Prev 840,000.00
After ad 875,000.00

Merchandise Inventory 35,000.00

JPB, Capital

Prepaid expense 43,750.00

Accrued expense
JPB, Capital
 4 ITV 3/4 2,138,500.00
YSL 1/4 712,833.00
Total 4/4 2,851,333.00

Adjust the books of ITV

Merchandise Inventory
Prev 560,000.00
Aft adj 612,500.00

Merchandise Inventory 52,500.00

ITV, Capital 52,500.00

Allowance for Uncollectible Accounts 70,000.00

After adj 84,000.00

ITV, Capital 14,000.00

Allowance for Uncollectible Accounts 14,000.00

Books Agreed
PPE 420,000.00 420,000.00
Accdep (35,000.00) (140,000.00) 105,000.00
Recov 385,000.00 280,000.00

ITV, Capital 105,000.00

Accumulated Depreciation 105,000.00
Practice Exercises
A 70% 18,436,250.00 (1)
B 30% 7,901,250.00
Total 100% 26,337,500.00
A, Capital
10,500,000.00
Accumulated Dep (350,000.00)
ADA (1,190,000.00)
Merchandise Inventory (87,500.00)
Total adjustments (1,627,500.00)
BALANCE CAPITAL 8,872,500.00

(3.00) A will invest 9,563,750.00

(4.00) B will withdraw cash 4,098,750.00
 Cash 700,000.00
Land and Building 2,187,500.00
DBM, Capital 700,000.00
MGX, Capital ###

n the partnership profits.

New set of books

Cash 455,000.00
14,700.00 Accounts Receivable 735,000.00
Merchandise Inventory 875,000.00
Prepaid expense 43,750.00
Accounts Payable
Allowance for Doubtful Account
Accrued expense
JPB, Capital
35,000.00 (1,575,000 - 14,700 +35,000+32,200)

Cash 813,750.00
11,550.00 KDO, Capital
32,200.00
 JPB 2/3 ###
KDO 1/3 813,750.00
Total 3/3 ###

75.00
25.00
100.00

Close the books of ITV

Accounts Payable 980,000.00
Allowance for Uncollectible Accounts 84,000.00
Accumulated Depreciation 140,000.00
ITV, Capital ###
Cash
Accounts Receivable
Merchandise Inventory
SFP Property, Plant and Equipment
(2,205,000 + 52,500 - 14,000 - 105,000)
ITV, Capital
###
14,000.00 52,500.00
105,000.00
119,000.00 ###
###
 8,872,500.00 70%
(2) 3,802,500.00 30%
12,675,000.00 100%
B, Capital
8,225,000.00
525,000.00
(787,500.00)
(61,250.00)
(323,750.00)
7,901,250.00 (2)
 455,000.00
14,700.00
11,550.00
### 2/3 ###
35,000+32,200)

813,750.00
 NEW PARTNERSHIP BOOKS
Cash 630,000.00
Accounts Receivable ###
Merchandise Inventory 612,500.00
Property, Plant and Equipment 280,000.00
630,000.00 Accounts Payable
### Allowance for Uncollectible Accounts
612,500.00 ITV, Capital
420,000.00
Cash 712,833.00
YSL, Capital

ITV Co and YSL Company

Statement of Financial Position
###

Assets
Cash
Accounts Receivable ###
Less: Allowance for Uncollectible Accounts 84,000.00
Merchandise Inventory
Property, Plant and Equipment
TOTAL ASSETS

Liabilities and Capital

Accounts Payable
ITV, Capital
YSL, Capital
TOTAL LIABILITIES AND CAPITAL
980,000.00
84,000.00
###

712,833.00

###

###
612,500.00
280,000.00
###

980,000.00
###
712,833.00
###