Professional Documents
Culture Documents
1-1: a 1-2: b 1-2: c 1-3: a Cash Land Mortgage payable Net assets (Julio, capital) 1-4: b Total Capital (P300,000/60%) Perla's interest Perla's capital Less: Non-cash asset contributed at market value Land P 70,000 Building 90,000 Mortgage Payable ( 40,000) Cash contribution 1-5: d 1-6: b Reyes Cash Inventory Building Equipment Mortgage payable Net asset (capital) 1-7: c AA Cash Property at Market Value Mortgage payable Equipment at Market Value Capital
2
Jose's capital should be credited for the market value of the computer contributed by him. (40,000 + 80,000) 2/3 = 180,000 x 1/3 = 60,000.
_120,000 P 80,000
- Zero, because under the bonus method, a transfer of capital is only required.
CC
P 50,000
_______ P 50,000
P55,000 P55,000
Chapter 1
1-8: a
SS P 25,000 __60,000 P 85,000 Nora P 90,000 160,000 ( 60,000) ________ P190,000 P575,000 ______60% P345,000 190,000 P155,000
1-9: c
Cash Merchandise inventory Computer equipment Liability Furniture and Fixtures Total contribution Total agreed capital (P230,000/40%) Nora's interest Nora's agreed capital Less: investment Cash to be invested P 30,000
200,000 P230,000
1-10: d
Roy Cash Office Equipment Note payable Net asset invested Agreed capitals, equally (P300,000/3) = P140,000 ________ P140,000 P100,000 Sam P220,000 _( 60,000) P160,000 Tim ______ P
1-11: a
Lara Cash Computer equipment Note payable Net asset invested Goodwill (P240,000 - P130,000) = P130,000 ________ P130,000 P110,000 Mitra P200,000 50,000 _( 10,000) P240,000
1-12: a
Perez Cash Office Equipment Merchandise Furniture Notes payable Net asset invested Partnership Basic Considerations and Formation P 50,000 30,000 _______ P 80,000 Reyes P 70,000 110,000 100,000 ( 50,000) P230,000 3
Bonus Method:
Total capital (net asset invested) Goodwill Method: Net assets invested Add: Goodwill (P230,000-P80,000) Net capital 1-13: b Required capital of each partner (P300,000/2) Contributed capital of Ruiz: Total assets P105,000 Less Liabilities __15,000 Cash to be contributed by Ruiz 1-14: d Total assets: Cash Machinery Building Less: Liabilities (Mortgage payable) P 70,000 75,000 _225,000
P310,000
P150,000
__90,000 P 60,000
Net assets (equal to Ferrer's capital account) Divide by Ferrer's P & L share percentage Total partnership capital Required capital of Cruz (P400,000 X 30%) Less Assets already contributed: Cash P 30,000 Machinery and equipment 25,000 Furniture and fixtures __10,000 Cash to be invested by Cruz 1-15: d Adjusted assets of C Borja Cash P 2,500 Accounts Receivable (P10,000-P500) 9,500 Merchandise inventory (P15,000-P3,000) 12,000 Fixtures __20,000 Asset contributed by D. Arce: Cash P 20,000 Merchandise __10,000 Total assets of the partnership
__65,000 P 55,000
P 44,000
__30,000 P 74,000
Chapter 1
Adjusted capital of Lopez (2/3) Unadjusted capital Adjustments: Prepaid expenses Accrued expenses Allowance for bad debts (5% X P100,000) Adjusted capital Total partnership capital (P165,900/2/3) Multiply by Mendez's interest Mendez's capital Less Merchandise contributed Cash to be invested by Mendez Total Capital: Adjusted capital of Lopez Contributed capital of Mendez Total capital 1-17: d Moran, capital (40%) Cash Furniture and Fixtures Divide by Moran's P & L share percentage Total partnership capital Multiply by Nakar's P & L share percentage Required capital of credit of Nakar: Contributed capital of Nakar: Merchandise inventory Land Building Total assets Less Liabilities Required cash investment by Nakar 1-18: c Garcia's adjusted capital (see schedule 1) Divide by Garcia's P & L share percentage Total partnership capital Flores' P & L share percentage Flores' capital credit Flores' contributed capital (see schedule 2) Additional cash to be invested by Flores P 15,000 _100,000