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    ALABANG PLUMBING Intro

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    Isa Ng
    Ed and Mark opened Alabang Plumbing Partnership in January 2017, each contributing $67,000. The partnership prepares financial statements monthly and adjusting and closing entries. As of March 2021, the partnership's trial balance shows cash of $150,000, accounts receivable of $115,000, and service vehicle of $185,000 less accumulated depreciation of $15,000. Liabilities include accounts payable of $100,000 and various tax payables. The capital accounts of Ed and Mark are $81,745 each.

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    ALABANG PLUMBING Intro

    Uploaded by

    Isa Ng
    33 views1 page
    Ed and Mark opened Alabang Plumbing Partnership in January 2017, each contributing $67,000. The partnership prepares financial statements monthly and adjusting and closing entries. As of March 2021, the partnership's trial balance shows cash of $150,000, accounts receivable of $115,000, and service vehicle of $185,000 less accumulated depreciation of $15,000. Liabilities include accounts payable of $100,000 and various tax payables. The capital accounts of Ed and Mark are $81,745 each.

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    ALABANG-PLUMBING-Intro

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    Ed and Mark opened Alabang Plumbing Partnership in January 2017, each contributing $67,000. The partnership prepares financial statements monthly and adjusting and closing entries. As of March 2021, the partnership's trial balance shows cash of $150,000, accounts receivable of $115,000, and service vehicle of $185,000 less accumulated depreciation of $15,000. Liabilities include accounts payable of $100,000 and various tax payables. The capital accounts of Ed and Mark are $81,745 each.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    33 views1 page

    ALABANG PLUMBING Intro

    Uploaded by

    Isa Ng
    Ed and Mark opened Alabang Plumbing Partnership in January 2017, each contributing $67,000. The partnership prepares financial statements monthly and adjusting and closing entries. As of March 2021, the partnership's trial balance shows cash of $150,000, accounts receivable of $115,000, and service vehicle of $185,000 less accumulated depreciation of $15,000. Liabilities include accounts payable of $100,000 and various tax payables. The capital accounts of Ed and Mark are $81,745 each.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    CASE 1

    INTRODUCTION
    In Jan. 1, 2017, Ed and Mark opened up a plumbing service, Alabang Plumbing Partnership
    contributing P67,000 each and agreed to equally share profits and losses.
    The entity prepares financial statements on a monthly basis; hence, it prepares adjusting and
    closing entries at the end of each month.
    Alabang Plumbing maintains the following:
    110 Cash
    120 Accounts Receivable
    130 Input VAT
    140 Plumbing Supplies
    150 Service Vehicle
    150-A Accumulated Depreciation – Service Vehicle
    200 Accounts Payable
    210 Withholding Taxes Payable
    220 Expanded Withholding Taxes Payable
    230 SSS, Philhealth and Pag-IBIG Contributions Payable
    240 Utilities Payable
    250 Accrued Percentage Tax Payable
    260 Notes Payable
    310 E. Plum, Capital
    320 M. Bing, Capital
    330 E. Plum, Drawings
    340 M. Bing, Drawings
    350 Income Summary
    410 Plumbing Revenues
    510 Salaries Expense
    520 SSS, PhilHealth, and Pag-IBIG Contributions
    530 Rent Expense
    540 Utilities Expense
    550 Plumbing Supplies Expense
    560 Depreciation Expense
    570 Percentage Tax Expense
    580 Miscellaneous Expense

    Alabang’s post-closing trial balance as of March 30, 2021 is as follows:


    Debit Credit
    Cash P150,000
    Accounts Receivable 115,000
    Service Vehicle 185,000
    Accumulated Depreciation – Service Vehicle 15,000
    Accounts Payable 100,000
    Withholding Taxes Payable 800
    Expanded Withholding Taxes Payable 3,000
    SSS, PhilHealth, and Pag-IBIG Contributions Payable 5,550
    Utilities Payable 6,300
    Accrued Percentage Tax Payable 5,860
    Notes Payable 150,000
    E. Plum, Capital 81,745
    M. Bing, Capital 81,745
    TOTAL 450,000 450,000
    The partnership’s accounting policy includes the following:
    1. The partnership uses special journals to record service revenues, cash receipts, and cash
    disbursements in addition to general journal. It also maintains subsidiary ledger for its
    clients.
    2. Depreciation on service vehicle is P3,000 per annum.
    3. Purchases of plumbing supplies are immediately charged to expense.
    4. Percentage Tax is accrued monthly at 10% of service revenues.

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