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Exercise 2.2

This document contains entries to record the initial capital contributions and assets of a partnership between Asuncion and Aquino. It shows that Asuncion contributed 1/3 of the total cash of $450,000. Adjusting entries are made to record estimated uncollectible accounts, cost of goods sold, and depreciation expense. The balances are then closed out to the capital account of partner Aquino.

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213 views3 pages

Exercise 2.2

This document contains entries to record the initial capital contributions and assets of a partnership between Asuncion and Aquino. It shows that Asuncion contributed 1/3 of the total cash of $450,000. Adjusting entries are made to record estimated uncollectible accounts, cost of goods sold, and depreciation expense. The balances are then closed out to the capital account of partner Aquino.

Uploaded by

lheamaecayabyab4
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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CAYABYAB, LHEA MAE O.

BSA1
EXERCISE 2.2
ENTRIES:
ACCOUNTS AGREED VALUATION
DR CR
CASH 450,000
ACCOUNTS RECEIVABLE 180,000
ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS 10,000
MERCHANDISE INVENTORY 270,000
EQUIPMENT 125,000
ACCUMULATED DEPRECIATION -------
ACCOUNTS PAYABLE 105,000
NOTES PAYABLE 90,000
AQUINO, CAPITAL 820,000

1/3 OF CASH INVESTED BY ASUNCION


Therefore, 2/3 OF CASH INVESTED BY AQUINO
TO RECORD THE CAPITAL OF ASUNCION: 820,000 multiplied by 3/2
is equal to 1,230,000
then, 1,230,000 multiplied by 1/3
TOTAL 410,000

ENTRY:
DEBIT
CASH 410,000
ASUNCION, CAPITAL
ADJUSTING ENTRIES
DEBIT
Allowance for Uncollectible Accounts 5,000
Aquino, Capital

Aquino. Capital 30,000


Merchandise Inventory

Aquino, Capital 55,000


Equipment

CLOSING THE BALANCES OF ACCOUNTS IN THE BOOKS OF AQUINO

ACCOUNTS AGREED VALUATION


DR
CASH
ACCOUNTS RECEIVABLE
ALLOWANCE FOR UNCOLLECTIBLE AC 10,000
CREDIT MERCHANDISE INVENTORY
EQUIPMENT
410,000 ACCUMULATED DEPRECIATION
ACCOUNTS PAYABLE 105,000
NOTES PAYABLE 90,000
AQUINO, CAPITAL
CREDIT

5,000

30,000

55,000

E BOOKS OF AQUINO

AGREED VALUATION
CR
450,000
180,000

270,000
125,000
-------

820,000

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