Advanced accounting guerrero peralta volume 1 solution manua

Partnershipm–mBasicmConsiderationsmandmFormation 1

CHAPTERm1

MULTIPLEmCHOICEmANSWERSmANDmSOLUTIONS

1-1: a
Jose'smcapitalmshouldmbemcreditedmformthemmarketmvaluemofmthemcomputermcontributed
mbym
him.
1-2: b (40,000m+m80,000)mm2/3m=m180,000mxm1/3m=m60,0
00.
1-3: a
Cash P100,000
Land 300,000
Mortgagempayable (m 50,000)
Netmassetsm(Julio,mcapital) P350,000

1-4: b
TotalmCapitalm(P300,000/60%) P500,000
Perla'sminterest m 40%
Perla'smcapital P200,000
Less:Non-cashmassetmcontributedmatmmarketmvalue
Land Pm70,000
Building 90,000
MortgagemPayable (m40,000) _120,000
Cashmcontribution Pm80,000

1-5: dm -mZero,mbecausemundermthembonusmmethod,mamtransfermofmcapitalmismonlymrequired.

1-6: b
Reyes Santos
Cash P200,000 P300,000
Inventory – 150,000
Building – 400,000
Equipment 150,000
Mortgagempayable m (m100,000)
Netmassetm(capital) P350,000 P750,000

1-7: c
AA BB CC
Cash Pm50,000
PropertymatmMarketmValue Pm80,000
Mortgagempayable (m35,000)
EquipmentmatmMarketmValue m m P55,000
Capital Pm50,000 Pm45,000 P55,000

,2 Chapterm
1

1-8: a
PP RR SS
Cash Pm50,000 Pm80,000 Pm25,000
m
ComputermatmMarketmValue mmmm 25,000 mmmm 60,000
Capital Pm75,000 Pm80,000 Pm85,000
1-9: c
Maria Nora
Cash Pm30,000
Merchandiseminventory Pm90,000
Computermequipment 160,000
Liability (m60,000)
m
FurnituremandmFixtures 200,000
Totalmcontribution P230,000 P190,000

Totalmagreedmcapitalm(P230,000/40% P575,000
)mNora'sminterest m 60%
Nora'smagreedmcapita P345,000
lmLess:minvestment m190,00

0
Cashmtombeminvested P155,000

1-10: d
Roy Sam Tim
Cash P140,000 – –
OfficemEquipmen – mP220,00 –
m m
tmNotempayable 0
_(m60,000)
Netmassetminvested P140,000 P160,000 P –

Agreedmcapitals,mequallym(P300,000/3)m= P100,000

1-11: a
Lara Mitra
Cash P130,000 P200,000
Computermequipmen – 50,000
m
tmNotempayable _(m10,000)
Netmassetminvested P130,000 P240,000

Goodwillm (P240,000m-mP130,000)m= P110,000

1-12: a
Perez Reyes
Cash Pm50,000 Pm70,000
OfficemEquipmen 30,000 –
tmMerchandise – m110,00

0
Furniture 100,000
Notesmpayable m (m 50,000)
Netmassetminvested Pm80,000 P230,000

,Partnershipm– 3
mBasicmConsiderationsmandmFormation

1-12:mContinued
BonusmMethod:
Totalmcapitalm(netmassetminvested) P310,000

GoodwillmMethod:
Netmassetsminvested P310,000
Add:mGoodwillm(P230,000-P80,000) _150,000
Netmcapital P460,000

1-13 : b
Requiredmcapitalmofmeachmpartnerm(P300,000/2)
P150,000
ContributedmcapitalmofmRuiz:
m

Totalmassets P105,000
LessmLiabilities 15,000
mmmm mmmm 90,000
CashmtombemcontributedmbymRuiz Pm60,000

1-14 : d
Totalmassets:
Cash Pm70,000
Machinery 75,000
Building _225,000 P370,000
Less:mLiabilitiesm(Mortgagempayable) 90,000
Netmassetsm(equalmtomFerrer'smcapitalmaccount) P280,000
DividembymFerrer'smPm&mLmsharempercentage m 70%
Totalmpartnershipmcapital P400,000

RequiredmcapitalmofmCruzm(P400,000mXm30%)
P120,000
LessmAssetsmalreadymcontributed:
m

Cash Pm30,000
Machinerymandmequipment 25,000
Furnituremandmfixture mmmm10,00 mmmm 65,000
s 0
CashmtombeminvestedmbymCruz Pm55,000

1-15 : d
AdjustedmassetsmofmCmBorja
Cash Pm 2,500
AccountsmReceivablem(P10,000-P500)
9,500
Merchandiseminventorym(P15,000-
m

P3,000)m 12,000
Fixtures mmmm 20,000 Pm44,000
AssetmcontributedmbymD.mArc
e:
Cash Pm20,000
Merchandise 10,000
mmmm mmmm 30,000
Totalmassetsmofmthempartnership Pm74,000

, 4 Chapterm
1
1-16 : a
CashmtombeminvestedmbymMendez:mA
djustedmcapitalmofmLopezm(2/3)
Unadjustedmcapital P158,400
Adjustments:
Prepaidmexpenses 17,500
Accruedmexpenses (m 5,000)
Allowancemformbadmdebtsm(5%mXmP100,000) _(m 5,000)
Adjustedmcapital P165,900

Totalmpartnershipmcapitalm(P165,900/2/3) P248,850
MultiplymbymMendez'sminterest m ⅓
Mendez'smcapital Pm82,950
LessmMerchandisemcontributed mmmm50,000


CashmtombeminvestedmbymMendez Pm32,950

TotalmCapital:
AdjustedmcapitalmofmLopez P165,900
ContributedmcapitalmofmMendez 82,950
mmmm


Totalmcapital P248,850
1-17: d
Moran,mcapitalm(40%)
Cash Pm15,000
FurnituremandmFixtures _100,000 P115,000
DividembymMoran'smPm&mLmsharempercentage m 40%
Totalmpartnershipmcapital P287,500
MultiplymbymNakar'smPm&mLmsharempercentage m 60%
RequiredmcapitalmofmcreditmofmNakar: P172,500
ContributedmcapitalmofmNakar:
Merchandiseminventory Pm45,000
Land 15,000
Building mmmm65,000


Totalmassets P125,000
LessmLiabilities 30,000
mmmm Pm95,000
RequiredmcashminvestmentmbymNakar Pm77,500

1-18: c
Garcia'smadjustedmcapitalm(seemschedulem1) P40,500
DividembymGarcia'smPm&mLmsharempercentage m 40%
Totalmpartnershipmcapital P101,250
Flores'mPm&mLmsharempercentage m 60%
Flores'mcapitalmcredit Pm60,750
Flores'mcontributedmcapitalm(seemschedulem2) 43,500
mmmm


AdditionalmcashmtombeminvestedmbymFlores Pm17,250