Yolanda, Lando and Dodong were to form the Stormware Partnership on November 30 2018.

Both
Yolanda and Dodong already own a company, for which their net assets will be their initial capital investment.
Lando will invest a sufficient amount equal to Dodong’s investment. The Books of Dodong Distributors will be used
by the Partnership

The Statement of Financial Position of the two companies were as follows:

Yolanda Apparels
Statement of Financial Position
November 30, 2018
Cash 600,000 Accounts Payable 205,000
Accounts Receivable 325,000 Notes Payable 750,000
Allowance for Bad Debts 115,000 210,000 Total Liabilities 955,000
Notes Receivable 375,000
Merchandise Inventory 600,000 Yolanda, Capital 830,000
Furniture & Equipment 1,800,000
Less: Accumulated Depreciation 450,000 1,350,000
Total Assets 1,785,000 Total Liabilities & Capital 1,185,000

Dodong Distributors
Statement of Financial Position
November 30, 2018
Cash 50,000 Accounts Payable 85,000
Accounts Receivable 100,000 Notes Payable 200,000
Allowance for Bad Debts 25,000 75,000 Salaries Payable 2,200
Notes Receivable 300,000 Total Liabilities 287,200
Prepaid Insurance 9,000
Office Equipment 450,000 Yolanda, Capital 487,800
Less: Accumulated Depreciation 109,000 341,000
Total Assets 775,000 Total Liabilities & Capital 775,000

The would-be partners agreed that the following be adjusted before the formation

Books of Yolanda Apparels Book of Dodong Distributors

1. The Merchandise Inventory should be P660,000
2. Allowance for bad debts should be increased by
75,000
3 Interest on Notes Payable was at 10% interest
issued on September 30,2015.
4 Supplies still on hand amounted to P15,000
5 Depreciable assets should be 1/3 depreciated
1 Allowance for Bad debts should be 30% of the
outstanding receivables.
2 Interest on Notes Receivable was at 6% issued on
September 1, 2015
3 Insurance Expired amounted to P5,500.
4 Depreciable assets should be 1/3 depreciated

(before completing this statement---------------- complete first the next page)

The Statement of Financial Position of Yolanda Apparels would be as follows:

STORMWARE PARTNERSHIP
Statement of Financial Position
November 30, 2018

Cash P Accounts Payable P

Accounts Receivable P Notes Payable
Allowance for Bad Debts Salaries Payable
Interest Payable Interest Payable
Notes Receivable Total Liabilities P
Supplies
Merchandise Inventory Yolanda, Capital P___________
Prepaid Insurance Lando, Capital ___________
Furniture & Equipment Dodong Capital ___________
Office Equipment
Total Assets P Total Liabilities & Capital P
BOOKS OF LANDO (Adjust and Close)
Date Particulars PR Debit Credit

BOOKS OF DODONG (Adjust then enter the investment of Yolanda and Lando)
Date Particulars PR Debit Credit