55Books of Geron Cash Accounts Receivable Inventories Land Furniture and Fixtures Other Assets Total of Assets 11,000 234,536 120,035 603,000 50,345 2,000 1,020,916 Accounts Payable Notes Payable Geron, Capital Total of Liability and Owner's Equity 178,940 200,000 641,976 1,020,916 BOOKS OF YUMUL Cash Accounts Receivable Inventories Building Furniture and Fixtures Other Assets Total of Assets 22,354 567,890 260,102 428,267 34,789 3,600 1,317,002 Accounts Payable Notes Payable Yumol,Capital Total Liability and Owner's Equity 243,650 345,000 728,352 1,317,002 ADJUSTMENTS a.) Accounts Receivable of 20,000 in Geron's book and 35,000 in Yumol's are uncollectible. b.) Inventories of 5,500 and 6,700 are worthless in Geron's and Yumol's respective books. c.) Other assets of 2,000 for Geron and 3,600 for Yumol are to be written off. ADJUSTING Entries for Geron Capital a.) Geron, Capital 20,000 Allowance for Uncollectible Accounts b.) Geron, Capital 5,500 Inventories c.) Geron, Capital 20,000 5,500 2,000 Other assets 2,000 BOOKS OF GERON Geron, Capital 27,500 Allowance for Uncollectible Accounts 20,000 Inventories 5,500 Other assets To record adjustments 2,000 BOOKS OF YUMoL Yumol,Capital Allowance for Uncollectible Accounts Inventories Other Assets 45,300 35,000 6,700 3,600 To record adjustments CLOSING ENTRIES BOOKS OF GERON Accounts Payable Notes Payable Allowance for Uncollectible Account Geron,Capital Cash 178,940 200,000 20,000 614,476 11,000 Accounts Receivable Inventories Land Furnitures and Fixtures 234,536 114,535 603,000 50,345 To close the books of Geron BOOKS OF YUMUL Accounts Payable Notes Payable Allowance for Uncollectible Accounts Yumol,Capital Cash Accounts Receivable Inventories Building Furniture and Fixtures 243,650 345,000 35,000 683,052 22,354 567,890 253,402 428,267 34,789 To close the books of Yumol BOOK OF PARTNERSHIP Geron's book of Partnership Cash Accounts Receivable Inventories Land Furniture and Fixtures Accounts Payable Notes Payable Allowance for Uncollectible Accounts Geron,Capital 11,000 234,536 114,535 603,000 50,345 To record Geron's investment Yumol's Book of Partnership Cash Accounts Receivavble Inventories Building Fixture and Furnitures 22,354 567,890 253,402 428,267 34,789 178,940 200,000 20,000 614,476 Accounts Payable Notes Payable Allowance for Uncollectible Accounts Yumol,Capital 243,650 345,000 35,000 683,052 To record Yumol's investment Geron and Yumol Statement of Financial Position July 1, 2012 Assets Cash Accounts Receivable Less: Allowance for uncollectible accounts Inventories Land Building Furniture and Fixture 802,426 (55,ooo) 33,354 747,426 367,937 603,000 428,267 85,134 Total assets 2,265,118 Liabilities and Owner's Equity Accounts Payable Notes Payable Geron,Capital Yumol,Capital 422,590 545,000 614,476 683,052 Total Liabilities and Owner's Equity 2,265,118
