Activity 2 Olivia Jadulco, Edgar Mabad and Diona Anghag were partners in a business engaged in printing and publishing. The Statement of Financial Position reveals that their business has no...

Extracted text: Activity 2 Olivia Jadulco, Edgar Mabad and Diona Anghag were partners in a business engaged in printing and publishing. The Statement of Financial Position reveals that their business has no obligation to outside creditors. ASSETS PARTNER'S EQUITY Cash P120,000 Jadulco, Capital (30%) P400,000 Accounts Receivable 150,000 Magbad, Capital (20%) 280,000 Inventories 260,000 Anghag, Capital (50%) 150,000 Equipment 300,000 Total P830,000 Total 830,000 On January 1, 20A, the partners agree to admit Mayla Cañete as a new partner after considering the following revaluation and adjustments: 1. Allowance for doubtful accounts of P20,000 is to be established for possible uncollectible account. 2. Inventories should be recorded at their net realizable value of P240,000 3. The net book value of the equipment should be adjusted at P250,000. 4. Accrued expenses should be recognized, P10,000. Instruction: 1. Prepare necessary adjusting journal entries. 2. Record the admission of Cañete assuming: a) she purchases 1/3 of partnership's interest. b) she invests P200,000 for a 1/4 interest on agreed capitalization of P930,000. c) she invest P200,000 for a 1/5 interest in the new firm's capital of P930,000.