11

Roberts Smith
Cash 20,000 30,000
Inventory 15,000
Building 40,000
F&F 15,000
Mortgage (10,000)
Capital 35,000 75,000

12
R D Total
Cash 150,000 120,000 270,000
60% 40%
Goodwill 30,000 30,000
Total Capital 300,000

Contributed Capit Agreed Capital

R 150,000 180,000
D 120,000 120,000
270,000 300,000

13
Reyes Santos Total
Cash 200,000 300,000 500,000
Inventory 150,000 150,000
Building 400,000 400,000
Equipment 150,000 150,000
Mortgage (100,000) (100,000)
350,000 750,000 1,100,000

14
Unadjusted Capital
Ortiz 133,000
Ponce 108,000
241,000
Adjustments:
Allowance for DA (4,500)
Inventory 5,000
Accrued expenses (4,000)
Adjusted Capital of O&P 237,500
Divided by Ownership interest of O 80%
Total Partnership Capital 296,875
Adjusted Capital of O&P (237,500)
Cash to be invested by Roxas 59,375

15
 AA BB
Cash 9,000 18,000
Machinery and Equipment 13,500
Land 90,000
Building 27,000
Office furnitures 13,500
Mortgage (54,000)
Adjusted contribution 36,000 81,000
60%
Total Partnership Capital 135,000
Less: Capital of B (81,000)
Total Capital of A 54,000
Less: Contributions (36,000)
Additional cash investments 18,000

16
CC DD Total
AR 11,250 11,250
Inventories 16,875 33,750 50,625
Equipment 15,000 35,625 50,625
AP (5,625) (3,750) (9,375)
Adjusted Balances 37,500 65,625 103,125
Total Capital Contributions 75,000 75,000 150,000
Cash 37,500 9,375 46,875
Non Cash 43,125 69,375 112,500
Total Assets 80,625 78,750 159,375

17
Coco Martin
Cash 300,000 700,000
Machinery and Eq. 250,000 750,000
Building - 2,250,000
F&F 100,000
Mortgage (800,000)
650,000 2,900,000

18
Norma Celso
Cash 748,800
Equipment 512,000
Accounts Receivable 96,000
Inventory 268,800
Furniture & fixtures 514,560
Intangibles 220,800
Unadjusted Assets 1,260,800 1,100,160
Adjustments:
 Allow. For doubtful accounts (7,680)
Overtstatement of Inventory (19,200)
Undertsatement of F&F 11,520
Intangibles (13,440)
Adjusted Contribution of Celso 1,071,360
Contributions Ratio 5 4 9
Percentage 56% 44%
Total Partnership Capital 2,410,560
Contribution of Celso (1,071,360)
Contribution of Norma @FV 1,339,200
Cash (748,800)
FV of Equipment 590,400
BV of equipment 512,000
Undervaluation 78,400

CC Ratio AC
Norma 1,339,200 57% 1,374,019
Celso 1,071,360 43% 1,036,541
2,410,560 2,410,560

19
FF
Cash 70,000
Machinery 75,000
Building 225,000
Mortgage (90,000)
FF Capital 280,000

20
FF Capital 280,000
FF P&L % 70%
Total partnership Capital 400,000
CC P&L Ratio 30%
CC Required capital 120,000
Less:
Cash (30,000)
Machinery and equipment (25,000)
Furniture and fixtures (10,000)
Cash to be invested by CC 55,000

21

DD EE Total
Salary 9,000 12,000 21000
Interest 7,500 10,000 17500
Remainder 12,900 8,600 21500
 Share in NI 29,400 30,600 60000

22
DD EE Total
Interest 7,500 10,000 17500
Remainder 25,500 17,000 42500
Share in NI 33,000 27,000 60000

DD EE Total
Capital Beg 75,000 90,000 165000
Addt investment 30,000 30000
Share in NI 33,000 27,000 60000
Salary 9,000 12,000 21000
Personal Drawings (9,000) (12,000) -21000
Capital Balance 03/1/2020 108,000 147,000 255000

23
NN OO Total
Salary 180,000 180,000
Remainder 15,000 15,000 30,000
Total 20x5 NI 195,000 15,000 210,000
20x4 NI understatement 24,000 16,000 40,000
Total 219,000 31,000 250,000

24
Arthur Baxter Cartwright
Salaries 20,000
Interest 6,000 8,000 10,000
Remainder 1,800 1,800 2,400
Share in NI 7,800 29,800 12,400

Caiptal Beg. 60,000 80,000 100,000

Share in NI 7,800 29,800 12,400
Drawings (5,000) (5,000) (5,000)
Capital, ending 62,800 104,800 107,400

25

A B Total
Salaries 20,000 25,000 45,000
Bonus 8,000 0 8,000
Interest (20% x average capital) 8,000 10,000 18,000
Balance - equally 8,500 8,500 17,000
Total 44,500 88,000
 Bonus
NI 88,000
NI After bonus 80,000
Bonus 8,000

26

Blue Green Total

Salary allowances 55000 45000 100000
Remainder -12000 -8000 -20000
Allocation of net income 43000 37000 80000

27
C W N
10%Interest on Beg Capital 10,000 15,000 20,000
Salary 10,000
Remainder(20%;40%;40%) 19,000 38,000 38000
Share in NI 29,000 63,000 58,000

Capital 1/01/20x4 100,000 150,000 200000

Share in NI 29,000 63,000 58,000
Personal Withdrawals (12,000) (12,000) (12,000)
Capital 12/31/20x4 117,000 201,000 246,000
28
10%Interest on Beg Capital 11,700 20,100 24,600
Salary 10,000
Remainder(20%;40%;40%) 22,720 45,440 45440
Share in NI 34,420 75,540 70,040

Capital, 1/1/x5 117,000 201,000 246,000

Net income 34,420 75,540 70,040
Withdrawals – personal -12,000 -12,000 -12,000
Capital, 12/31/x5 139,420 264,540 304,040

29
NI 180,000
(150,000)
Excess 30,000
5%
1,500
30
Capital Beg
Additional Investment 25,000
Withdrawals (130,000)
Net Income 45,000 30% 150,000.00
Net Decrease (60,000)
Total
20,000
24,000
6,000
50,000

240,000
50,000
(15,000)
275,000
Total
45,000
10,000
95,000
150,000

450,000
150,000
(36,000)
564,000

56,400
10,000
113,600
180000

564,000
180,000
-36,000
708,000