Scribd
Upload
681 views2 pages

Acfar1130 - Chapter 12 Problems

The document summarizes the adjustments made to the trial balance of Espanol's sole proprietorship business. Accounts receivable increased by P6,000, inventory increased by P20,000, and equipment increased by P64,000 after adjusting for accumulated depreciation. Journal entries were made to record these adjustments and close the sole proprietorship. Finally, a statement of financial position was presented for Fish R Us, Espanol's new corporation, with total assets of P1,490,000 and total liabilities and equity also of P1,490,000.

Uploaded by

Mae Bars
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
681 views2 pages

Acfar1130 - Chapter 12 Problems

The document summarizes the adjustments made to the trial balance of Espanol's sole proprietorship business. Accounts receivable increased by P6,000, inventory increased by P20,000, and equipment increased by P64,000 after adjusting for accumulated depreciation. Journal entries were made to record these adjustments and close the sole proprietorship. Finally, a statement of financial position was presented for Fish R Us, Espanol's new corporation, with total assets of P1,490,000 and total liabilities and equity also of P1,490,000.

Uploaded by

Mae Bars
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

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

You might also like