Extracted text: Blake Kredell owns and operates a retail business called Blake's Camera Shop. His post closing trial balance on December 31, 2021, is provided below. Blake plans to enter into a partnership with Carmen Santos, effective January 1, 2022. Profits and losses will be shared equally. Blake will transfer all assets and liabilities of his store to the partnership, after revaluation. Santos will invest cash equal to Blake's investment after revaluation. The agreed values are: Accounts Receivable (net), P7,500; Merchandise Inventory, P27,000; and Store Equipment, P8,000. The partnership will operate under the name Picture Perfect. BLAKE'S CAMERA SHOP Post closing Trial Balance December 31, 2021 ACCOUNT NAME DEBIT CREDIT Cash P 6,000 Accounts Receivable 8,000 Allowance for Doubtful Accounts P 200 Merchandise Inventory 26.000 Store Equipment 12,000 Accumulated Depreciation-Store Equipment 8,000 Accounts Payable 5,000 Blake Kredell, Capital 38,800 Totals P 52,000 P 52,000 In recording the partners' investments: 1. Allowance for Doubtful Accounts will be (1) credited (debited or credited?) for (2) 500 (amount) 2. Store Equipment will be (3) debited (debited or credited?) for (4) 8000 (amount) 3. Kredell, Capital will be (5) credited (debited or credited?) for (6) 43500 (amount) 4. Santos, Capital will be (7) credited (debited or credited?) for (8) 43500 (amount) 5. Cash balance after recording the partners' investments will be (9) 49500 (amount)
Extracted text: Net income for Costmore Sales for the year ended December 31, 2021, was P52,000. The partners, Johnson and Lindstrom, have the following capital balances: Capital Balance Johnson Lindstrom Original capital contribution 100,000 100,000 As of Dec 31, 2021 122,000 128,000 Average in 2021 110,000 115,000 a. If there was no agreement as to the distribution of profits or losses, how much of the net income will be allocated to Johnson? (1) 26000 To Lindstrom? (2) 26000 b. If partnership profits are distributed according to ending capital balance, how much of the net income will be allocated to Johnson? (3) 25376 To Lindstrom? (4) 26624 C. If partnership profits are distributed according to an arbitrary ratio of 65:35 to Johnson and Lindstrom respectively, how much of the net income will be allocated to Johnson? (5) 33800 . To Lindstrom? (6) 18200 d. Assume that instead of earning a net income of P52,000, the partnership incurred losses of P30,000. The partnership agreement calls for distribution of profits at an arbitrary ratio of 65:35 to Johnson and Lindstrom respectively. How much of the net loss will be allocated to Johnson? (7) (19500) To Lindstrom? (8) (10500)