Scribd Logo
Upload

Welcome to Scribd!

  • Fish R Us PDF

    Uploaded by

    MCM Enterprise
    65 views7 pages
    Espanol operated a fishing equipment shop as a sole proprietorship. On January 1, 2008 she formed a partnership with Quino. The summary provides the opening journal entries to record Espanol's investments into the partnership at the agreed upon revalued amounts of accounts receivable (net $140,000), inventory ($460,000), and equipment (net $124,000). Quino invested an equal amount of cash. The partnership statement of financial position as of January 1, 2008 shows total assets of $1,490,000 consisting of current and non-current assets, total liabilities of $30,000 for accounts payable, and total owner's equity of $730,000 each for Espanol

    Original Description:

    Original Title

    Fish_R_Us.pdf

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Espanol operated a fishing equipment shop as a sole proprietorship. On January 1, 2008 she formed a partnership with Quino. The summary provides the opening journal entries to record Espanol's investments into the partnership at the agreed upon revalued amounts of accounts receivable (net $140,000), inventory ($460,000), and equipment (net $124,000). Quino invested an equal amount of cash. The partnership statement of financial position as of January 1, 2008 shows total assets of $1,490,000 consisting of current and non-current assets, total liabilities of $30,000 for accounts payable, and total owner's equity of $730,000 each for Espanol

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    65 views7 pages

    Fish R Us PDF

    Uploaded by

    MCM Enterprise
    Espanol operated a fishing equipment shop as a sole proprietorship. On January 1, 2008 she formed a partnership with Quino. The summary provides the opening journal entries to record Espanol's investments into the partnership at the agreed upon revalued amounts of accounts receivable (net $140,000), inventory ($460,000), and equipment (net $124,000). Quino invested an equal amount of cash. The partnership statement of financial position as of January 1, 2008 shows total assets of $1,490,000 consisting of current and non-current assets, total liabilities of $30,000 for accounts payable, and total owner's equity of $730,000 each for Espanol

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 7

    A Sole Proprietor and an Individual with NO Business Form a Partnership

     
    Espanol Operated a specialty shop that sold fishing equipment and accessories. post-closing trial balance on Dec. 31,
     
    Fish R Us
    Post-Closing Trial Balance
    Dec. 31, 2007
    Debit Credit
    Cash 36,000
    Accounts Receivable 150,000

    Allowance for Uncollectible Accounts 16,000


    Inventory 440,000
    Equipment 135,000
    Accumulated Depreciation 75,000
    Accounts Payable 30,000
    Espanol, Capital 640,000
    761,000 761,000
     
    Espanol plans to enter into a partnership with trusted associate, Quino, effective
    Jan. 1, 2008. Profits or losses will be shared equally. Espanol is to transfer all assets
    and liabilities of her shop to the partnership after revaluation.
     
    Quino will invest cash equal to Espanol’s investment after revaluation. The agreed values are as follows:
    accounts receivable (net), P140,000;
    inventory, P460,000;
    equipment (net), P124,000.
    The partnership will operate under the business name of Fish R Us
     
    Required:
    1 Prepare the opening journal entries in the books of the partnership.
    2 Prepare the partnership’s statement of financial position as at the date of formation of the partnership.

    This study source was downloaded by 100000839616899 from CourseHero.com on 02-08-2022 19:01:04 GMT -06:00
    balance on Dec. 31, 2007 is as follows:

    This study source was downloaded by 100000839616899 from CourseHero.com on 02-08-2022 19:01:04 GMT -06:00
    Fish R Us
    General Journal
    Book of Partnerships
    For the Month of January in the Year 2008
    DATE ACCOUNT TITLES AND EXPLANATION PR
    Jan-01 Cash
    Accounts Receivable
    Allowance for Uncollectible Accounts
    Inventory
    Equipment
    Accounts Payable
    Espanol, Capital
    To record the investments made by Espanol

    Jan-01 Cash
    Quino, Capital
    To record the investments made by Quino

    This study source was downloaded by 100000839616899 from CourseHero.com on 02-08-2022 19:01:04 GMT -06:00
    DEBIT CREDIT
    36,000
    150,000
    16,000
    440,000
    135,000
    75,000
    640,000

    730,000
    730,000

    This study source was downloaded by 100000839616899 from CourseHero.com on 02-08-2022 19:01:04 GMT -06:00
    Adjustment of Accounts

    ACCOUNT TITLES PR UNADJUSTED ADJUSTED


    Cash 36,000 36,000
    Accounts Receivable 150,000 150,000
    Allowance for Uncollectible Accounts 16,000 10,000
    Inventory 440,000 460,000
    Equipment 135,000 124,000
    Accumulated Depreciation 75,000 -
    Accounts Payable 30,000 30,000
    Espanol, Capital 640,000 730,000

    NOTE:
    Cash to be invested by Quino is equal to Espanol's Capital.

    This study source was downloaded by 100000839616899 from CourseHero.com on 02-08-2022 19:01:04 GMT -06:00
    Fish R Us
    Statement of Financial Position
    Book of Partnerships
    For the month of January in the year 2008
    ACCOUNT TITLES PR
    Assets
    Current Assets
    Cash 766,000
    Accounts Receivable 150000
    Less: Allowance for Uncollectible Accounts -10,000 140,000
    Inventory 460,000
    Total Current Assets
    Non-Current Assets
    Equipment 124,000
    Total Assets

    Liabilities
    Current Liabilities
    Accounts Payable 30,000
    Total Liabilities

    Owner's Equity
    Espanol, Capital
    Quino, Capital
    Total Liabilities and Owner's Equity

    This study source was downloaded by 100000839616899 from CourseHero.com on 02-08-2022 19:01:04 GMT -06:00
    1,366,000

    1,490,000

    30,000

    730,000
    730,000
    1,490,000

    This study source was downloaded by 100000839616899 from CourseHero.com on 02-08-2022 19:01:04 GMT -06:00
    Powered by TCPDF (www.tcpdf.org)

    You might also like