Partnership Operation When Rose Adonis and Rollend Jairus Ellado are partners of WWW COMPANY.

The Income and Expense Summary account throughout the operation shows a debit balance of P750, 000.00, after closing at the end of the period. The following are there capital balances; When Rose Adonis Rollend Jairus Ellado Assumptions: A. Each partner shall receive an annual salary of P50, 000.00 and P45, 000.00 respectively. B. When Rose Adonis being the managing partner shall receive a 10% bonus of net income before salaries to both partners. C. 25% interest is allowed to partners based on their respective capital balances. D. Any remainder will be divided according to the ratio 60%-40%. W. Adonis Salaries P95, 000 Bonus 75, 000 Interest 270, 934 Balance 066 P750, 000 P50, 000 75, 000 112, 142 185, 440 P422, 582 R. Ellado P45, 000 --------158, 292 123, 626 P327, 418 309, Total P448, 567.00 P633, 167.00

Partnership Dissolution: (Incorporation of a Partnership) The following are the amount balances of WWW COMPANY after adjustments in preparation for the incorporation. Cash Accounts Receivable Allow. For Doubtful Account Prepaid Insurance Prepaid Rent Supplies Merchandise Inventory Building Accum. Depn. Equipment Accum. Depn. Accounts Payable W. Adonis, Capital R. Ellado, Capital TOTAL Debit P1, 070, 000 50,000 38, 334 110,000 24, 000 90, 000 300, 000 10,000 240, 000 1, 000 75, 000 871, 149 960, 585 P1, 922, 734 Credit P5, 000

_________ P1, 922, 734

WWW CORPORATION (corporate name of WWW company) is authorized to issue P15, 000 common stock at P150 per share. Journal Entries: Partnership Book ADA 5, 000 Accum. Depn. 11, 000 Accounts Payable 75, 000 Receivable from the corporation 1, 922, 734 Cash A/R Prep. Insurance Prep. Rent Supplies Merchandise Invty. Building Equipment W. Adonis, Capital R. Ellado, Capital Receivable from WWW corp.

1, 070, 000 50, 000 38, 334 110, 000 24, 000 90, 000 300, 000 240, 000 871, 149 960, 585 1, 831, 734

Book of the Corporation A. Memo: Authorized to issue 15, 000 common stock at 15 per share. B. Subscription Receivable C/S Subscribed Common Stock C. Cash 1, 070, 000 A/R 50, 000 Prep. Insurance 38, 334 Prep. Rent 110, 000 Supplies 24, 000 Merchandise Invty. 90, 000 Building 300, 000 Equipment 240, 000 ADA Accum. Depn. Accounts Payable Subscription Receivable-C/S D. Subscribed Common Stock Common Stock Partnership net assets: Total Assets Less: Total Liabilities Net Assets Par Value per share Total shares issued Partners When Rose Rollend Jairus Capital Balances P 871, 149 960, 585 P1831, 174 1, 831, 734 1, 831, 734

5, 000 11, 000 75, 000 1, 831, 734

1, 831, 734 1, 831, 734

1, 922, 734 - (91, 000) 1, 831, 734 P150 12, 212 shares Par Value per share 150 150 150 No. of shares 5808 6404 12, 212 shares

SAINT PAUL SCHOOL OF BUSINESS AND LAW Campetic, Palo, Leyte

REQUIREMENT IN ACCOUNTING 17NA

(7:00 8:30 TTh)

Submitted by: When Rose Adonis BSA-1 CPA Rollend Jairus Ellado BSA-1

Submitted to: Mr. Rosben Murillo,