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    Requirement 1.1 pee vacessary entries to adjust the book of Jacklyn. es Dt cm Allowance for cite Account 4 6 Seed Sous tapitan zone AY Focciyns capita) 3,260 pice fesse ee Gata oe eines cea wie ieee Prepare ncesar eis toast the bok of Kenneth a cot a) kenneth i capital is}900 seer areca : pee [a tnvenvory 50 : aeecaeel DS Paar ee Kenneth, cap ta) Lia geen 109, omer _Acsets me8 Rae ase pilibus payable 35,0 i e (On the date of formation, prepare a Statement of Financial Position for Jacklyn and Kenneth’ partnership. ‘and K Builders ‘Statement of Financial Position January 1, 2016 cash 38,560 | drcounts Receivables (net 241,600 Snveniori B4sc0e Eucnitum > Fixture (net) Nooo | Equip: (nee 1255.08 piand 400,000 lotr Agere ee a tora Assets Ald, 09 0. | colanes paycbi. 4s.000, Ubuistie eayabl nb O fibccounts foyabie a Taciiyn, capital 944,500 accel Kenneth, capt) aptal_trabilitics and capital sea (y eile eee meee Hazel operates a successful merchandising busine Cash 60,000.00 ‘Accounts Receivable 120,000.00 ‘Merchandise Inventory 180,000.00 Store furniture (net) 70,000.00 Total Assets 430,000.00 ‘Accounts Payable 195,000.00 ‘Accrued Expenses 15,000.00 Hazel, capital 320,000.00 Total Assets| 430,000.00 with her fiend Angel. Hazel will contribute her business subject tothe following adjustments: accounts must be set up at 2% of the outstanding accounts receivable. ‘Angel contribute to give her a 40% interest in the partnership? (3 points) * = I2S,o¢O gI2,~0°o X F070 ae Problem 3 On January 1, 2016, Aubrey and Barb Feported a profit of P400,000 forthe year ended December 31 wer on the space provided 4 T Profit share | ‘Aubrey barbie, a | ee eel ese a ak eer | ee [ee a [Prone ond toss ata agreed by Arey and Brie NS, ae ¢. Annual salaries of P80,000 and P100,000 i: v a te ee | Annual salaries of P75,000 each, interest of 10% based on thelt 145, 000 {___ orignal capital contribution and the balance shared equal piseeecs ca Requirement 3.2 Compute the capital balan Gi stall T Hb The partner flied to come up wih profiviosaareement 540,007 Profit and fost ratio az agreed by Aubrey and Barbe Ie 60D, 540,000 respectively. L ‘Annual salaries of P80,000 and P100,000 is provided for Aubrey and Barbie, respectively. Balance Is distributed equally. 440,000 ~ | a Anal salaries of 75,000 each. Interest of 10% based onthe’ | coy cy reed original capital contribution and the balance shared equally fn, eee | asey face Seria c) [goo \nee End of Quiz oT [a0 «av “Tare 5) Likewise aii sarbic Tors 000 \ee,000 newer B90v0 (ox, 00 a aula oo00 (0,000 220,000 progit Snowe {4o,000 210,000 400,000 00 satarves 73,000 75/000 i ae 0,00 A) Interest i/s 39,000 ree ES 400,000 400,000 S50 Ga ance ee £0000. 205,000 ae 00) | Adyencise Universizy of che Dhilippines COLLEGE OF BUSINESS DEPARTMENT OF ACCOUNTANCY Principles of Accounting It - Quiz #2 are CE Name Rowell Scone INSTRUCTION. Write your final answer on the space provided. Aveid erasures it will invalidate your answer. Whisper prayer before you start. GOO Oa Problem! 210 o, ‘The partnership agreement of Noe!, Manny, and Cynthia provides that profits are to be divided as follows: Partners are to recelve a 10% interest on their average capital Each partner is to receive an annual salary of P24,000. ‘Noel, the manager, i to receive a bonus equivalent to 10% of the net income after interest and salaries. Remaining profits is to be divided equally among the partners vvvy ‘The movement in the capital ofthe partners Is summarized below: 110,000.01 180,000.01 450,000.00 20,000.00. z 30,000. 50,000.01 20,000.08 5,000.04 20,000.01 50,000,007 20,000.09 10,000.00 10,000.00) 30,000.00 30,000.00, ‘The partnership had a net income of P180,000 for the year just ended. equiremens: 1. Whats the average cpl of Noel? _3eana 2. What is the average capital of Manny? 143,780 ereks 3. What is the average capital of Cynthia? 189,949 aoe ‘4. Prepare a schedule showing the distribution of partnership net income. 1918 [wooo — [miery powers [steep 08s [40 mao | fest gave ree lvwin ted «| goose) “eos 78 4 “*Show supporting computations below: ( powute [Oto ( 190/076 - $2,000 -72,000) 50,400 > ‘i = §eoe 6 Prepare Statement of Changes in Partners’ Equity. NMC Partnership Statement of Changes in Partners Equity For the year ended December 31,2001 foc manny nahin Taal Beginning [Beginning Capitay WAT uoeo0 1wo,eve | 150,000 | 44e,000 Adda tewesement UY ce,o00. lio, 0uo 230/000 Drawing Ul 7ic,eco 15,000 20,000) $5000 ending Canital 160,000 225,000 W000 | 435,000 Net income 60,025 O75 =a,b00_ | 180/000 otal FA 220,035 295,175 E 244,800 25900 Problem 2 The partnership of A and Crealzed einen 20000 for yar ended Dezember 31 2015The partners agreed to allow 320% bonus to 8, the managing partner. The partners are provided annual salaries of P100,000 each and 10% interest on ending capital balances. After providing bonus, salaries, and interest, the partners divided residual profits equally. Partners A, 8, and C reported ending balances of P200,000, P150,000, and P175,000, respectively. capital Instruction: Compute the amount of bonus under each ofthe following assumptions. 2 points each) 4. Bonusis based on profit before salaries, interest and bonus. 84,000 2. Bonsis based on prof after bonus but before salaries and itress pg 09 _ ee 3, Bonusis based on profit after salaries and bonts. ‘4. Bonus is based on profit after salaries and interest but before bonus, 5. Bonusis based onproft after slares. Problem 3. Emerald Bry, and Diamond owns Precious Gems Partnership. Their agreement inudes the flowing: > Emerald and Bery! receives a salary of P40,000 and 20,000, respectively. > Emerald and Beryl receives a bonus of 5% of net income after bonus. > Allpartners are to receive a 10% interest on their average | ‘capital balances. The average capital balances are as follows: Emerald, P100,000; Beryl, P90,000; Diamond, P94,000. > Any remaining profits are tobe divided equally among partners Eom 1 Determine how profit of 210,000 wil be cated ane the pat \t 2 Ww 0,000. Gens) Problem 4 gthe tolowing: ‘Mel and Jay are partners with capitals of P200,000 and 120,000, ras 8, 10% Interest on their capital balance. bb. Annual salary of P36,000 to Mel ‘& _ Remainder in 60:40 ratio to Mel and Jay partnership income be Tn order for ay to receive P40,000in the remainder of the proft afer saiary and nearest? What would 168,000 God Bess! h Jeu le. 50D ne a 2000 jud 2000 (%00 =2,000 Poi 0,000 4otyo 100,000 108,000 Advencise Universizy of che Philippines COLLEGE OF BUSINESS DEPARTMENT OF ACCOUNTANCY Principles of Accounting Il - Unit Test | Many Sunciel Rowell 2 Scone: 2Y/ ( @} INSTRUCTION. — Use permanent ink in writing you final answer onthe space provided bare gach nuriber, Erasure Is strictly nok allowed on fina answer. Support your answer with proper solution. Whisper a prayer before youstan, OS ma 1d has accumulated depreciation of P5,000. Mark contributes equipment to a partnership. The equipment cost 20,000 an try on the __The Equipment has a faic market value of P16,000 on June 20, 2016, the formation of the partnership. The e partnership's books wil include: od 2. a debit to equipment for 20,000 ba debit to equipment for P16,000 € debit to equipment for P14,000 4. _acredit to accumulated depreciation for 6,000. « Justine estributes a heavy equipment originally costing P350,000 toa partnership. On the date of formation, the related ‘price when sold to the matket as second hand is P300,000..The FY = 16,000 —-acCismulated depreciation ls P70,000 but its curvent sellin ‘equipment must be recorded in the partnership book at 350,000 b. 280,000 Fv2 200,000 230,000 4. 300,000 Cnt contoutes» heavy equipment orignal contig F3S0000 toa partnership. On the date of formation, the related > sated cepretions P0000 bs caren seling price when sol tothe market as second hand's 7300,000, The of 50,00 wich the parnershiphas assumed, Wstn's capital must be recorded in the equipments subject toa partnership book at ae 2. 7350,000 ; anti, Ser. -tatands b. P280,000 a — htm Jushne Capital —-SH00e 4. 230,000 meriqage payable =< fa Yn Oa ‘a. Debit to accounts receivable of P72,000 Bebo allowance for uncllectbe accounts of 4000 * Debi accounts receivable of 65,00 d. Credit allowance for uncollectible accounts of P4,000 there isan agreement for division of profits but none for losses, itis concluded that losses should be distributed in the same way as profits fosses should be distributed equally ‘osses should be charged to the partner with the biggest share in profit ( ay ares losses should be divided according to the partners’ original capital contribution, —14. How mich isthe invested capital of tebron? . P2,000,000 a © 2,500,000 | 4,000,000 ie nee —~ a P7,500,000 Me >. 5,000,000 equipment SCONE © pssoo00 ( qisoesecw 7,000,000 rans 71,600,000 Use the following Information in answering items 16 ~ 22: Anne admits Dianne asa partner in her business. Accounts inthe ledger of Anne on December 31, 2035, immediately before the admission of Dianne show the following balances cash 260,000 aug 24992 remid Op r4000 Accounts Receivable 420000 Wa 2088 Ag 200) Merchandise inventory 480,000 wi. 24090 pica. aoe Accounts Payable 260,000 gig! +290 Anne, capital 300,000 onan Epmrere ‘They have agreed that for purposes of establishing Dianne's interest, the following adjustment should be made: | Anallowance for uncolecible accounts accounts receivable; The merchandise Inventory iste be increa¥@d by P20,000, and & Prepaid expenses of P25,000 and accrued expenses ofPS,600 are to be recognized, Dianne sto Invest sufficient cash to obtain a 1/3 interest n the partnership. The partnership wil use a new set of accounting books. —D._16. The ety oat the acounts receivable inthe book of Anne woul nclade 4 credit for uncollectible accounts of P21,000 Dd. ‘entry to adjust the merchandise inventory in the book of the part '& Debit allowance for uncollectibie accounts of P21,000 'b. Credit allowance for uncollectbie accounts of P42,000, & Debit accounts receivable of P23,000 “a. Debit inventory for P20,000 'b. Credit Anne capital for P20,000 WRN DD SN Pars Se we Ea 20. The total assets of the newly formed partnership is + F1,863,700 re Co b P1,642,700 0, © 4522,700 ties 4 P4617,700 prepaid Brcrees 15) 000 bites ofthe newly formed partnership i sennrener’ | F a. 260,000 cal Syed arp 260,000 & 7266,600 4402 4 Answer not given Pee rs rota Linh 246100 2 22-The total capita of the newly formed partnership i 2. P1,223,200 Ay Capra) 417,400 b. P1599,000 f © PL402,300 D. Capita) cs! 1.376.100 1976 00 Fale) Use the following information in answering questions 23.34: oha\ Lid 2 % Mark, Leo, and Elirige formed a partnership on Knuary 1, 2022with investments of Pi00,000, 150,000, sed #2501 respectively. They greed tothe following division of profits and loses: 2 Interest pF TR based on the beginning capital ofthe year h Kamran ctrigsoniiad & Balance ter Jhterest and salary ina ratio of 20% for Mark, and 40% each for Leo and Eldrige on, Net nce foyer 2014 wais0,030 Mien 2015, income was P1800, During 014 015, th priest a ——= P 63,000 fdary acta Ff aon Remainder 28h) (4,000 (41) 3000 (46/) 32009 : to” ae C28. hat was Eldrige’s share of income for year 20147 ‘P6300 b. P53,000 & P38,000 4. 29,000 @.P51,000 ‘Mark's share of income for year 2014? ‘a P63,000 b. 53,000 < PS8,000 4. P29,000 e an ! _D_26. what was Eldrige’s capital balance at the end of 2014? eo Ld yo 200,000 7224.00 & #238,000 & P246,000 fe. P24,000 27. What was Leo's capital balance atthe end of 20147 ,_P350,000 60,000 © P165,000 4. P213,000 @. P201,000 atypia) b.P117,000 . P119,000 4. P128,000 fe. P153,000 2, wot artes share of come for eu 2057 rane b. 775,540 65,540 4, 70,040 61,420 B28 wot was rapt tment 08 ! . #100000 | 100,000 en| 000 7,000. Se a O Se aoo tease Of. Ny 702 aosoo 90nd Sell solary \,008 ; cide 13,600 Remaindertat) 2220 (#)) 45490 "0/) 45A8D pom: Port tae “samo asysyp 10,080 WORE D._30. Eldrige’s share of income for Year 2015? 2" 34,420 75,540 65,540 70,040 b 4 fe. 63,420 As, wows Marsh ct nome fo Yow 2057 ‘a. P34420 b. P75,540 765,540 4. P70,040 fe, 761,420 Eldndge cpt, E at was Eldrige’s capital balance atthe end of 20152. 24,000 feyooo 19,090 204,040 P139,420 246,000 276,540 279,440 304,040 Pecee Slt les capital balance at the end of 2015? C34, what was Mari’s capital balance atthe end of 2015? a P163,420 Leo, cqpi +4) b. p1si,420 © P139420 4 P100,000 fe. 7142,000 f {Use the following information In answering tems 35 ~ 36: (Write your final answer on the space provided before each umber partner, Is allowed a “The net income of Nell and Lance Partnership for 2015 amounted to P504,000. Nell as the manag - bonus. 5;H00 _35. if bonus was based on net income before bonus, what was Nei's bonus in 2015? (6/, 400 35, itbonus wal 45,16 _36, 1rbonus was based on net income after bogus, what was eis bonusin2015? 1""/* Bonus Use the following information in answering items 35 ~ 36: (Write your final answer on the space provided before each umber The net income of Ariel and Kendrew Partnership for Year 2015 amounted to P504,009. Ariel isthe managing partner. Assume thatthe partners agreed on the following allocation of profits and losses Bonus of 20% to Ariel , Salaries to Ariel, P4z,000 and to Kendrew,P72,000; : Interest of 10% on average capital balances of P144,000 and P96,000 of Ariel and Kendrew, respectively. 4. Residual balance i allocated to Ariel and Kendrew in the ratio of 2:1. e & - | Assume bonus was bated on net ingame before bonus sla and incest. ' bonus sate 2p 10,000 0/37. Yow mucisthe share of Aili partnership income for 20157 sores ABD 1212 20,0 qujow 240,007 . 32jee Vejen ane Roms Zi. \00, 800 1}@2,400_38. How much is the share of Kendrew in partnership income for 2015? vemande k cae Coane: gO rie OU they SE? sov009 wort O00 5 0h Teor 8. Assume bonus was based on neti vopl but before interest nd salaries. 2\4p00_39. How much Ts the share of Ariel in partnership income for 2015? 2 = folams — 4Bq0 7200 120,00 Nneere# i'l \ys4,000 %Wy,0D 240,000} Bonus 200, 84,000 eapw 4 @ 7 £0,909 18,00 40. Howmuch isthe share endew inte parinaripcametor2aiss Net CHs)90,000 (',) soma) “ou2eu 7K fort “Zibem Tegan SO a Se ( sey eov - 22000) y a0 Sip a vie seit deans sitet nn Rosin Gio wr 209, 33 44. How much isthe share of Ariel in the partnership income fer 2015? "A x eG 32,90 Cagis OR sta ee Que Ja4,c67 ee Bonsai) 64000 i £7 42 Wow muchisthe sare Kendrew inte partesip come or 49% ()c3,393 CUA647_go 267 opis ieee ga sia famed 90 38,03 me? Ne = RO pov = 240,000 * ~ — *.20 20 s > , B. Assume bos was aad on et fon fs sed on netincome afterbonus, salaries andinterest anys 2.4 000 Fe J PRRE a Howmahistestarctircintne averorennie ee 2 22> 3224p Remayntet (‘/;) 8! - tops, 2 *PPE{O0 44. How much ithe share of Kendrew inthe partnership income for 2015? |slew nership has profit ¢fP4a,000 and Partner Kristian Isto be allocated a bonus of 10% of profit after bonus, Krstianne!'s C5 ‘bonus woud be 3 P4400 A800 eo «4000 3.600 110 Answer no ven B46, ore, a partner in £6 Parenersip haa 20% shareln the parnershipprofit and loss. Her capital sccount had net decrease ‘of P6000 in 2015. During that year, she withdrew P120,000 against her capital account but invested a property with afar ‘value of P25,000, The profit ofthe partnership in year 2015s a ; = mapa Pour O30, 550,000 a “al ». P150,000 | s Name: 2 ar = Use permanent inkin writing your final answer on the space provided. Erasure's strictly INSTRUCTION. ‘Support your answer with proper solution. Whisper a prayer before you start Oa Problem 1 ‘The capital balances and profit-and-loss sharing percentages for A, 8, and Con December 31, 2015 are as follows A, capital (30%) 80,000 8, capital (50%) 90,000 capital (20%) 70,000 ‘The partners agree to admit D into the partnership on January 1, 2016 for a 20% interest n the capital and income of the business. Instruction: Under each ofthe following independent scenarios, (1) prepare entries to record the admission of D into the partnership, and (2) compute the capital balances ofthe partners after the admission of D. D purchased 20% of each of the capital ofA, 8, and C by paying P60,000. 1 Journal entry: Debit, Stedit. ral (60,000 % 207+) Yo000 — 18,000 picapitel ( 9g oun x 2077) Cy Capital (70000 K 207 ) 14,000 _— O,Capital ( 14,0004 1B000FI, 000) We oo0 Capital balance ofeach partner after admission A _@,000 ae c 6,000 =— 8 12.280 — D _4e,000 fe invests P50,000 in the partnership for 8 20% interest. Land account is understated in the book of A, 8, and C. Journal entry: Journal entry 3. _Diiwests 970,000 inthe partnership for a 20% Intarest. Land acc sec wer ai’ 200 - 1p, 000 | M10, 060 090,200 ‘4. DinwestsP60,000 fora 15% interest inthe partnership, Journal entry. i —Siedit. 0,000 + SuSQ0 soo at ra t 45,000. eee ee ee ‘rote i AB, and Care partners in trading business. They share profits and losses In 50:30:20 ratio w Acapital 3°. 300,000 Reaper *°/ 200,000 Ceaptal 10% 300,000 Imetructon: € is retiring from the partnership. Under each of the following ind retirement, and (b) compute the capital balance ofthe remaining partners after his retirement. 1. Cwas paid 220,000, Journal ety: ] Debit. | Cicapital Teo.ce © G [acepivel == 150 B, Capital ar - cash —— meee Capt balance ofeach pare ater retirement of A sangoo 8 102,800 2 Cwas pis Pa0,00. Journal entry Debit, 190,000 ——Autapital G6 —

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