6-8.

(JACK AND JILL COMPANY) Jack and Jill Company Statement of Comprehensive Income For the Year Ended December 31, 2012 Sales Cost of sales Gross Profit Other operating income Gain on sale of automobile Total income Operating expenses Depreciation Others Total expenses Profit before interest Interest expense Profit P P P 7,440,000 4,670,000 2,770,000 20,000 2,790,000 298,667 1,003,600 1,302,667 1,487,733 104,000 1,383,733

Jack and Jill Company Statement of Changes in Partners Equity For the Year Ended December 31, 2012 Equity, January 1 Withdrawals Share in profit Equity, December 31 Jack and Jill Company Statement of Financial Position December 31, 2012 Assets Current Assets Cash Accounts receivable Allowance for bad debts (60,000 17,500) Receivable from employees Deposit on merchandise purchases Merchandise inventory Prepaid insurance Total current assets Non-current Assets Property, plant and equipment Furniture and fixtures Accumulated depreciation furniture and fixtures Automobiles Accumulated depreciation - automobiles Total property, plant and equipment Total Assets Liabilities Current Liabilities Accounts Payable Accrued Expenses Bank loan, including accrued interest Total current liabilities Equity Jack Jill Total partners equity Total liabilities and partners equity Jack P1,750,000 (500,000) 691,867 P1,941,867 Jill P1,815,000 (250,000) 691,866 P2,256,866

P P

736,000 1,782,500 (42,500) 30,000 75,000 3,750,000 8,000 6,339,000 220,000 (87,000) 940,000 (421,667) 651,333 6,990,333

P P

P P P P

1,875,000 16,600 900,000 2,791,600 1,941,867 2,256,866 4,198,733 6,990,333

Sales Collections in 2012 (6,500,000 -60,000) Accounts receivable, end (1,800,000 17,500) Write off Accounts receivable, January 1, 2012 Sales

P6,440,000 1,782,500 17,500 ( 800,000) P7,440,000

Purchases Payments to merchandise creditors Accounts payable, end Returned merchandise (to be applied to future purchases) Accounts payable, beginning Net purchases Cost of sales Inventory, beginning Net purchases Inventory, end Cost of sales Depreciation expense On old furniture and fixtures (P220,000/10) On old automobiles (P780,000 280,000)/ 3 On new automobile 440,000 / 3 x 9/12 Depreciation expense Expenses other than depreciation Payments for selling and general expenses Prepaid insurance, beginning Prepaid insurance, end Accrued expenses, beginning Accrued expenses, end Expenses other than depreciation Interest Expense On bank loan obtained on 01/02/12 and paid 05/02/12 Accrued on bank loan obtained on 05/01/12 Total interest expense

P4,500,000 1,875,000 ( 75,000) (1,380,000) P4,920,000 P3,500,000 4,920,000 ( 3,750,000) P4,670,000 P 22,000 166,667 110,000 P 298,667 P1,000,000 15,000 ( 8,000) ( 20,000) 16,600 P1,003,600 P P 32,000 72,000 104,000