Formation Direction: Solve for what is required. The statement of…

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Question Answered step-by-step Formation Direction: Solve for what is required. The statement of… FormationDirection: Solve for what is required.The statement of financial position of ABC Company, a single proprietorship on December 22, 2022 is shown below  Image transcription textABC Company Statement of Financial Position December 22, 2022 Assets Cash 630,000.00 AccountsReceivable 1,680,000.00 84,000.00 Less: Allowance for Doubtful Accounts 70,000.00 1,610,000.00Merchandise Inventory 560,000.00 Property, Plant and Equipment 420,000.00 Less: Accumulate… Show more… Show moreABC Company admits Lanson to invest cash equal to one-fourth of Mendoza Capital after adjusting for the following: a. Merchandise Inventory is valued at P612, 500.00b. Accounts Receivable is estimated to be 95% collectiblec. Recoverable amount of property, plant and equipment is estimated to be P280, 000 Required:1. Prepare the necessary entries to adjust and close the books of ABC Company2. Prepare the entries to record the investment of Mendoza and Lanson in the new partnership books.3. Prepare a statement of financial position for the partnership of Mendoza and Lanson’s Merchandise as of December 22, 2022. Accounting Business Financial Accounting ACCOUNTING 403 Share QuestionEmailCopy link Comments (0)