‘s the answer to this Transcribed Image Text: 91 The following list of accounts and their balances appear on the books of M Thai Spa as of December 31, 2018:

‘s the answer to this Transcribed Image Text: 91 The following list of accounts and their balances appear on the books of M Thai Spa as
of December 31, 2018:
Cash
Accounts Receivable
Allowance for Bad Debts
Notes Receivable
Unexpired Insurance
Furniture & Fixtures
Accumulated Depn. – Furniture
Equipment
Accumulated Depn. – Equipment
Accounts Payable
Notes Payable
Unearned Commissions
Jay, Capital
Jay, Personal
P 58,850
32,400 Membership Fee
2,500
19,000 Advertising Expense
2,575 Taxes and Licenses
238,000 Rent
5,950 Sales Salaries
432,000 Office Salaries
21,600 Store Supplies Expense
15,000 Office Supplies Expense
50,000
600
60,000
3.600
Mel, Capital
40.000
945.900
1,530,500
300,160
108,970
644,000
346.000
150,000
3,400
2,090
310,850
10,610
5,455
15,000
Service Fee Income
Pa
Utilities Expense
Interest Expense
Interest Income
Loss on Foreign Exchange
Partnership agreement calls for the following:
Monthly salary allowance of P5,000 for Mel and P7,500 for Jay,
12% interest on capital balances, and residual profit to be shared equally.
Additional information were given to adjust the books:
a) Provision for bad debts should be 10% of the outstanding accounts receivable.
b) Office Furniture and Fixtures were acquired July 1, 2017 and the Delivery Equipment
were acquired January 1, 2017. Depreciation rate is the same for both assets.
c) One half of the unearned commission is already earned.
d) Prepaid insurance on the delivery equipment is payable annually starting May 1.
e) P10,000 of the notes receivable is interest bearing at 18% dated December 1, 2018
and due after 60 days.
f) The note payable was issued to the bank and discounted at 18% for a year on
December 1, 2018. The discount was charged to interest expense.
g) Tax rate is 30%.
Direction: Prepare a 10-column worksheet with a profit distribution table.

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