pia ea ae BISTRUCTIONS: shoe — ae ser UR STL Tions« SRLY.NO SOLUTIONS NO RONSON THe op score. ‘ACE PROVIDE ABEL YOu balan and Seed sch ner pany Aba SS Profe-sharing percent worse Toone MP © May 2, 2008, on {his date, hair eapitay = Behe a pace, Income tram ey, 2% Fae 20 NP |Ca8h and haves’ {May 31, 2000 ee Ala ort romnrhaatere tne aala faee RSENS. No Ny 9) an heparan se he Penoaranp how ich mtb esis in ce * * Bodine, A aK oer, pale wep “Ray Nemes BR ter ne ire Aus Shee onte, "EB Geren) C105 ithed hen ee Th eRE e ae aims ae 2. On May 1, 206: us % jhe oe (a xe’ 7208 eons EMER ae ee) ane 11.000 pan Se : i ‘Accounts Receivable 234,536 ~29n 56 7'390-T6R > AAsHe sate inventones '20,035-r6 2e0\t02-c1m= mes Sap , 603,000 2 Building = 428,267 Furniture and fixtures % ther assets face s ° 000m 3 600-340 «> 0,916 27,P'1,317,002 i Accounts pa-ahie PITA 049 ong D810 pnss.ecn ke os Notes payeti' 200,000, 341,004 meh ances Oliver, Capital 641,976-2m0 % amare we, AIEEE gy ey Twist, Capital e 728,352 - acwo = Total Pinta 6 re E1020.915 — P1.317.002 Oliver and Twist agreed to form a Partnership contributing their respective as to the following adjustments: 3) Accounts receivable of P20,000 in Oliver's books and 35,000 in Twist/books are uncollectibie 2) Inventories of P5,500 and PE,700 are worthiose Oliver's and Ty 00k 3) Other assets of P2,000 and 3,600 in the respective bec of Olivdr and Twist are to be written off id equities subject Sez } Peter offered to join for a 20% interest in the firm. How much cash sh id be contributed? 3. Tom, a pariner in TJ Partnership, has 30%: share in the partnership's mr Ss, account had a net decrease of P60,000 I year 2012. In year 2012 30 Partnership against his capital and invested property. vahied at P2S,600. in th perth income of the partnership in year 2012 is Tom Cap thare gp oe a P81 Beg Gams = Vornatmend 2500 | 1, poy withirnel ae Pe NA oe Gress) ‘ 4. Mark and Michelle are partners with capitals of 200,000 and P100,000 and sharing profits and i ic jth a 50% interest in the : i decided to admit Michael asa new parner with a 80% terest the fiat ches pee pea Pe esa DDD and Mark and Michele transferred portions of canitals as & bonus to MMM. After Michael's admission, Michelle capital would be - ee Fee Bonds Are 27 Tar, mow 4 Sas ca ee 7 jt 240. pachelle er j Sh yoo 4 ly 8 chee Be asm agg aw 4s00" } Tae5. Sunlight Co, Started operations on January 1. 2008, seling home appliances on instalment basie. For = 2008 anc! 2609, the folowing information are avatatic, "” "°™e °F : bas ‘2008 2009 Installment Sales 1,200,000 1,500,000 Cost of instalment sales "720,000 * 1!080,000 Collections: For 2008 sales 620,000 450,000 For 2009 sales ‘300,000 2010, an instalment #8 account balance of 2008 was defaulted and the ‘of P15,000, was repossessed. The account balance unrealized gross proft account 38a the end of 2008 wae with current market’ val defaulted was P24,000. The balance of the de pian forthe fst three months: instalment Rsveivable, Dec. 31 800,000 $n Deferred gross profi, Dec. St unadjusted" 1'050.000 Gross profiton Sales 25% ‘The realized gross profit on instalment sales during the first three months amounted to Ber —soreree Ins. ree -l2/21 seus Cer baft Pon EE, EP on sete x Ot oe Cree 315, Coma | cota | 8. Santos Co. Sells heavy duty batteries, which cost P7,000 at a total instalment price of 12,000. A- regular customer buys a unit and trades in his old unit for an allowancerof P2500 5Sa 250 to recondition each unit traded in and then sells them at P3,250 each, 7 from the sale of used batteries, What customer? ntos spends PFOM of 20% resul was the trade-in over(under) allowance granted to the : 807. -207,7 0H) Trde clone, 2res J FIBY ag ged podteree (32¢0K07.)-2q4 2350 Our callmance. 1s6 9. MOTOYAMA Motors, a dealer of motorcycles, sells exclusively on instalment basis. One of its - Customers, Mr. Sikat, purchased a motorcycle for P45,375. The cost to MOTOYAMA was P25,410. After_making an initial payment of P6,875. MR. Sikat defaulted on subsequent payments MOT lost no time in reposséssi jotorcycle which by this time, was a ata value zs MOTOVAa had to incyradditional cost of repair/remodelling before the motorcycle was subsequently resold fér.P27,400 te Mr. Laos who made an initial payment of P6875. How much gross profit was realized on the sale to Mr. Laos? rest weles 2740 CoS (Roses tere), fase ber The calles dion Gvis err C18 /2 74a) ” Rap BSR. Sor10. 1n October 2013, bits ot 5000 08 Below! > : ro soma ear Cost ine atimated py be st incurred Cost acai Sten dors "3.980.000 3,480,000 py Bagi et 900, 4180,000 "2 s00,008 Tho grace pllers uses iho costto-cost percentage of 22.2 STOR prot recognized in Sone eh PRFCSMAGS oF compton method of revenue recogeton Det een nara Lento avars) Sy tt oN Content: ew 20% Ea Eres ied a 2a GS . eal ee fee cat To tang a HEH og Lirwas” 3h go> x7 Gente) ie ton 1 oe Co. ones The Beitontage of cana 7 2018, he company bosah ores — roject hat Price of 5,000,000. At the end of 2016, a summary ef the copays oct 2015 2016 Cost incurred to date 1,128,000 9,828,000 Estimated cost to complete 31375000 "1'27s000 J | Total estimated cost 4,800,009 5,100,000 In ts mcome statement for the year 2016, the company would recognize a gross proft (loss) of REPT “at lute hee vey —zefade- fer yrenzens REP YEU W205 ja5uo Corimeh Proce Coos Cee teammate Inve — ator WEB e toa See ried Oi ci ie ode ter: ee, Fokranen 2, ORs 12 NTC entered into a franchising agreement with Cfo ord , 2016 for a fran ° 7500.00, payable P100,000 on. the agreement dalé_grd the balance in four equal annual instalments, Per agreement, the down payments refundabiedn the event that the franchisor Is unable to render certain stpulated ‘services and, co fasts have been rendee) in Nice we wo Bee Financia stareme-ts, the franchise feo ravenuc tsi operate x BO HO Seve nedtred 13. On September 1, 2008, Ace Enterprise, a franchisor, entered into a franchising agreement with Base * Co. charging Base_a-tranchise fee of P1,000.000 Upon signing the contract, a_non-refundable oumpaymentaf P50 000 aid with the balance payable in three equal annual instalments Starting 2009. Ace had already performed 95% of the services as of February 1, 2009 at a total cost of P300,000. Ace was able to collect the first instalment in 2009 but the collectability of the remaining balance is still doubtful. In its 2009 income statement, Ace should recognize a revenue of ge ha hae 14, Ruby Co. Bills its branch for-arerchandise shipments at25% gbove cost. The brancti in turn sells - merchandise af-33-1/3% Above the billing price. On May 31, 2006, a fire destroved all of the merchandise si i@ branch, The branch records show the following: January 4 inventory, at billing price ) daa Lepr pom te Gaur/ize) aon a Pm bam bac) (yasy00) Sle ees Caran fhtets fae) jm cst ast of merch. burned eeun Branch & Balun Branch recorded a deta & Baten Gran 1. debt note on inventory transfers for Home Ofom of P75 060 twin Barnette ca els Fo he Bann rah a crn Wen te © Bakun Branch raversod a previous dobit me Alok Br no rom Atok Bran amounting to P¥0.500, when 5 home office decided is appropriately Buguias Branch’s cost na Bakun Branch recorded n debit meme from soma Ciice of P4.060 as PASEO — <7# 15:Betore the above discrepancies were given 16+The adjusted. balance of the reciprocal effect the balance in the Home Office books Sone : of the akin Branch Curent Account was 165.920" The unadjusted balance in Barun Branch’s books of ts Home Office’ Current ‘Account must be ® 6) Be ocant ‘ Pekan reo) markaing OP 5d) Cenk bmnirte O15, the branch currant account had a 17, APC Marketi {es a branch in Makati. On October balance of the process of reconciling current acrcunts, the following ttems that follow were noted pene acta x * Thefiome cltice-had billed the branch P75,000 for merchandise shipment still in transit as of Octover ST. (7+ The home office customer's account for P21,000 collected by the branch on October 26 ha€not ) been reported to the home office. ee * © The branch failed to recognize ifs 5,000 share of advertising expense paid for by the home office _2_ The branch reported a net income of P43,500 during the fiscal period then ended: this was erroneously taken up as P45,500 by the home office ~ #rF-u --7sFew = Pam ‘Assuming that all other transactions related to the home office and its branch are correctly recorded, the adjusted balance ofthe reciprocal current accounts as of October 31, 2015 was eth rare lOmin Aa. uo tnionce ellafin — zyme Gy buh i Aaaggtel bef 18.iokia Vehtures fanch in Cebu City. Selected accounts taken from the May 31, 2016 statements of Bokia and its branch follow: 202 error Gnis - 45 50 Head Office Branch Sales P380,000 353,000 ‘Shipments to branch 150,000 - Branch merchandise mark-up 39,500 - Inventory, June 1, 2015 24,000 16,000 Purchases 300,000 60,000 Shipments from home office : (87,500, inventory, May 31, Z0Te 28,000 Ter, oh > The branch ending inventory included items costing P8,700 that were acquired {rom outsi suppliers. The realized mark-up on branch merchandise that would be recognized by the home off Marke x H7sw = [$0 Stroh prom Ho (187500 /f.35)k-26 3160 77 {foo wvenkiry Gil fie rm £26), Pl (zor 900) /Lee (4w = F6% ~/2um) 37 /@ 72stares comming = Sebi co pr branch on May | 2017 wth 9 anomant of mrerchanene bie at deca Soproerte avg. ceo we ted a PATS OD. Ten beach eta “Bivens Merchendiee mort inter often stvemacts are ihe Oraey 4 {oes cast Cn May 31, 2017, the branch reportet 8 net tone oF PES SO ana an reventony pee EDGR SHUT he ranch met income foes) retcad ihthr commend one tatemeane ha Wak SOOT Apron t oar 4 trae Ray 4, otha fd. ~~ oe . Bigot // We 2 SIDA Am 120,0n April 7. 2014, Steve Co. Part 620,000 for all common sock of Joby ‘property accounted under purchase method The recorded avsets and llahiliies of John Corp Ape? P01 are ‘Cann 60.000 Inveetony 180.000 Property, plant_and equipment (nat of pocumulated deprecsation P220.000) 320.000 Goodwill _100.000__ Liabiines —fiz0.000, Net Assets: Psa 000 ‘on Apri 1. 2011, John’s inventory had a fair valve of P'50,000 and the property and equipment (nat had @ fair value of P380,000” What i the amount of goodwill resulting from the business comin? atm tnby teh feb I rhk G20 00 BO: Leah - sebadiey (Are cane fy @ Fr (tino where Fae _ | er, BSE Co: Ascede sb Cpa) Hl wot Fea ew Bree 2t¢Justin Inc. Has forced into bankruptcy and has begun to ‘iq wil be pad a the rate of 40 cents on the peso. Kylie Co. Holds a non-interest Dearing note receivable {rom Justin in the amount of P100,000, collateralized by equipment with a licuidation value of 25,000, The total ' amount to be realized by Kylie Co. on this note receivable is Mle fecerasle ae bese; AE! et Coesm X PAA Goth mpg PE 14 bbon age So Bim © rr aw 22.DKY company filed a voluntary bankruptcy petition on September 30, 2009 and the statement of affairs reflects the following amounts: Estimated Book Value Current Value Assets Assets pledged with fully secured creditors P910,000 1,080,625 Assets pledged with partially secured creditor 511,875 wis Free Assets 1,137,500 250 Liabilities Liabilities with priority 113,750 Fully secured creditors Partially secured creditors 8,750 Jal eres 22 78oe Unsecured creditors 0 7 are Assume that the assole are converted into cash at the estimated current values and Ne bite liquidated, What total amount of cash should partially secured creditors receive? fr, seu» eds 544.780 Lees’, Anse. PPSE 541350 u 22s X Bee. fake i" CaA\20 fost) er. i 36500 Ads: APPS ba oe yO C4112 )a 700 VSS corp. tam the branch at a aintaining @ branch cf ae hm Mata. um ranger P5000 Th eet tg eyo, ne nme ages » forthe narod wndoa besa outage otic Ene Sates (20% on Expenses (50% of wiih ~ Rragnees (8 of eh i anpaiy Mages een Ie em rye pep Shipments from home ot : /entory, 1/1/2008 (30% fo Inventor. 1/1/2008 (30% from outsiders) ntory, 2 000 4-8 = 40 -wiey > 24 Remittance to home office "2 Home Office) 80.000 ee 60,000 ‘The branch Cost of Sales and Net income/Loss in as far a some office ie iconcemed are: ‘ pee cel eaten ere ae og he See Ti agcmenynn a, CE Tam nae oe ore eppern (O Se Gee 24,61, B2 and oa Be Taio Gecided to form a partnership. BI is to Invest cash of P15 190,000 57.000 but has a market value of P48,000. B2 is to invest cash amounting to units with a regular price of family is, gaged Jy computer dealership, is to invest three computer P30,000-Sach But Which cost their family’s business P20,000 for each fis according to their capital contribution. The capital balances of 81, unit. Partners agree to share pr 2 and B3 respectively upon formation are: $1 pseu beqmer =CIAS iad B2 seyQ0 EO - wef, 43 Yous 43 Goren as follows’ 2 — (96 :- The partnership agreement of A, B and C provides for the division of net income ¢ B, who manages the partnership is to receive a salary of P16,500 monthiy _/#. = Each parineristo-be-aliowed interestat 15% on hiding capilat” Balance is to be divided 25:30:45 y= =e During 2009, A invested an additional P96,000 in the partnership. B made an additional investment of P60,000 and withdrew P90,000 and C withdrew P72,000. No other investments or withdrawals were made during 2009. On January 1, 2009, the capital balances were A P280,000, B, P300,000 and ©, >170,000. Total capital at year-end was 975,000. What are the capital balances of A, B and C £ 8B e Tots| espectively at year-end? x sal a 40? Op an oe 4102 Kew 26 ol (oe) in) easy) Tov? BSD Dey Pad = AT oo ~ 2B. , 5 Bie ee Tio-yee dad xd ATES a ie oo EF can, v0 Lechon Inc., anctisons tre GAPE cance Saree id ‘Sison, franchisee, on ber 30, 2003. The total franchise fee is P500,000 of which P100,000 is payable upon signing and nce in four equal annual installments. The down payment is refundable in the event franc’ i ices and none thus far had been rendered. , Ce teoaes its financial statements on September 30, 2003, the franchise revenue to