Title | Accounting for Partnership and Corporation SOLMAN (Baysa & Lupisan, 2014) Chapter 3 |
---|---|
Author | Thyone Savva |
Course | Bachelor of Science in Accountancy |
Institution | Polytechnic University of the Philippines |
Pages | 17 |
File Size | 311.4 KB |
File Type | |
Total Downloads | 395 |
Total Views | 950 |
CHAPTER 3 Partnership Operations E 1. Borres Buendia Bustos x x x 2. Borres Buendia Bustos 3 6 x 1 6 x 2 6 x E Income Summary Banal, Capital Benson, Capital Interest on average capital Remainder divided equally Total 237,250 262,750 Banal P 148,250 P237,250 Computation of average capital Banal x 3 x...
CHAPTER 3 Partnership Operations E 3-1 1.
Borres Buendia Bustos
= 250/500 x P300,000 = P150,000 = 150/500 x P300,000 = P90,000 = 100/500 x P300,000 = P60,000
2.
Borres Buendia Bustos
= 3 / 6 x P300,000 = P150,000 = 1 / 6 x P300,000 = P50,000 = 2 / 6 x P300,000 = P100,000
E 3-2 Income Summary Banal, Capital Benson, Capital
500,000 237,250 262,750
10% Interest on average capital Remainder – divided equally Total Computation of average capital Banal 1/01 - 3/31 4/01 - 8/31 9/01 – 10/31 11/01 – 12/31
Benson
Banal P 89,000 148,250 P237,250
P800,000 960,000 840,000 900,000
x x x x
1/01 - 2/28 P1,200,000 x 3/01 - 6/30 1,020,000 x 7/01 - 9/30 1,160,000 x 10/01 – 12/31 1,260,000 x
3 5 2 2
2 4 3 3
Benson P114,500 148,250 P262,750
Total P203,500 296,500 P500,000
P
2,400,000 4,800,000 1,680,000 1,800,000 P10,680,000 / 12
P 2,400,000 4,080,000 3,480,000 3,780,000 P13,740,000 / 12
P890,000
P1,145,000
E 3-3
a.
b.
Interest of 10% on excess average capital Salaries Remainder – divided in the ratio of 70:30 Total
Benito P 40,000 500,000 42,000 P582,000
Interest of 10% on excess average capital Salaries Remainder –divided in the ratio of 70:30 Total
P 40,000 500,000 ( 98,000) P442,000
Bunye P300,000 18,000 P318,000
Total P 40,000 800,000 60,000 P 900,000 P
P300,000 ( 42,000) P258,000
40,000 800,000 ( 140,000) P 700,000
PC – Chapter 3
page 2
E 3-4 1. Blanco = 120/300 x P120,000 = P48,000; Banda = 180/300 x P120,000 = P72,000 2.
Blanco = 120/300 x P120,000 = P48,000; Banda = 180/300 x P120,000 = P72,000
3. Interest of 8% on original investment Balance – divided equally Total
Blanco P 9,600 48,000 P57,600
Banda P14,400 48,000 P62,400
Total P 24,000 96,000 P120,000
Salaries to partners Balance – divided equally Total
Blanco P 54,000 10,500 P 64,500
Banda P 45,000 10,500 P 55,500
Total P 99,000 21,000 P120,000
4.
5.
Blanco = 50/125 x P120,000 = P48,000; Banda = 75/125 x P120,000 = P72,000
E 3-5 1. Interest of 8% on beginning capital Salaries to partners Balance – divided 3:2 Total 2.
Bueno P 96,000 450,000 ( 77,400) P468,600
Beran P108,000 225,000 ( 51,600) P281,400
Total P204,000 675,000 ( 129,000) P750,000
Beran = P750,000 x 2/5 = P300,000; however, minimum guaranteed amount to Beran is P320,000 Bueno = P750,000 – P320,000 = P430,000
E 3-6 Net income after salaries, interest and bonus Interest (P200,000 x 10 %) Salaries Net income before interest and salaries Bonus rate Amount of bonus to be credited to Basco
P374,000 P20,000 96,000
E 3-7 Income before income tax = P650,000 / 65% = P1,000,000 1.
B = .05 x P1,000,000 = P50,000
2.
B
= = =
.05 (P1,000,000 – B) P50,000 / 1.05 P47,619
3.
B T
= =
.05 (P1,000,000 – T) .35 (P1,000,000) = P350,000
B
= = =
.05 (P1,000,000 – P350,000) .05 (P650,000) P32,500
116,000 P490,000 x 25% P 122,500
PC – Chapter 3
4.
page 3
B T
= =
.05 (P1,000,000 – B – T) .35 (P1,000,000) = P350,000
B
= = = =
.05 (P1,000,000 – B – P350,000) .05 (P650,000 – B) P32,500 / 1.05 P30,952
E 3-8 1. Capital balances Required capital Cash received (paid)
Balbin P240,000 256,000 (P 16,000)
Bagtas P200,000 224,000 (P 24,000)
Banta, Capital Balbin, Capital Bagtas, Capital 2. Capital balances Required capital Additional investment
Banta P200,000 160,000 P 40,000
Total P 640,000 640,000 ----
40,000 16,000 24,000 Balbin P240,000 320,000 P 80,000
Bagtas P200,000 280,000 P 80,000
Banta P200,000 200,000 --------
Total P 640,000 800,000 P 160,000
P240,000 / 40% = P600,000; P200,000 / 35% = P571,428; P200,000 / 25% = P800,000 Cash
160,000 Balbin, Capital Bagtas, Capital
3. Capital balances Required capital Additional investment(withdrawals)
80,000 80 000 Balbin P240,000 240,000 --------
Bagtas P200,000 210,000 10,000
Banta, Capital Bagtas, Capital Cash E 3-9 Drawings charged against capital Less Additional investment Decrease in capital Less Net decrease in capital Share in net income Profit share Net income of the partnership
Banta P200,000 150,000 (P50,000)
Total P640,000 600,000 P 40,000
50,000 10,000 40,000
P520,000 100,000 P420,000 240,000 P 180,000 25% P720,000
PC – Chapter 3
page 4
P 3-1 1. Income Summary Bondoc, Capital Barba, Capital Bondoc = P600,000 x 60% = P360,000 Barba = P600,000 x 40% = P240,000 2.
3.
600,000
Income Summary Bondoc, Capital Berba, Capital Bondoc = P600,000 x 255,000/382,500* = P400,000 Barba = P600,000 x 127,500/382,500** = P200,000
600,000
**Jan. 1 – Mar. 31 Apr. 1 – Dec. 31
P210,000 x 4 = 300,000 x 5 = 240,000 x 3 =
P150,000 x 3 = 120,000 x 9 =
350,000 250,000
400,000 200,000
P 840,000 1,500,000 720,000 P3,060,000 / 12 P 450,000 1,080,000 P1,530,000 / 12
P255,000
127,500 P382,500
Income Summary Bondoc, Capital Barba, Capital 8% interest on ave. cap. Balance – equally
5.
360,000 240,000
Income Summary Bondoc, Capital Barba, Capital Bondoc = P600,000 x 210/360 = P350,000 Barba = P600,000 x 150/360 = P250,000
* Jan. 1 – Apr. 30 May 1 – Sept. 30 Oct. 1 - Dec. 31
4.
600,000
600,000 305,100 294,400 Bondoc P 20,400 284,700 P305,100
Barba P 10,200 284,700 P294,900
Total P 30,600 569,400 P600,000
Income Summary Bondoc, Capital Barba, Capital Salaries Bal. – ending cap. ratio
600,000 376,000 224,000 Bondoc P120,000 256,000 P376,000
Barba P 96,000 128,000 P224,000
Total P216,000 384,000 P600,000
PC – Chapter 3
6.
page 5
Income Summa ry Bondoc, Capital Barba, Capital
600,000 300,000 300,000 Bondoc
Barba P150,000 P300,000 150,000 P300,000 P300,000 Bonus P600,000 x 1/3 divided by 1 1/3 = P150,000 Bonus Bal. – ave. capital ratio
Total P150,000 450,000 P600,000
P 3-2 1. Income Summary Bernal, Capital Burgos, Capital
700,000 505,800 194,200
8% int. on beg. capital Balance – 3: 1
2.
Total P 64,000 636,000 P700,000 700,000 284,000 416,000
Bernal P 140,000 48,000 96,000 P284,000
Burgos P260,000 60,000 96,000 P416,000
Total P400,000 108,000 192,000 P700,000
Income Summary Bernal, Capital Burgos, Capital
700,000 394,150 305,850
Salaries 12% int. on ave. cap.* Balance – 3:1
* Jan. 1 – May 31 June 1 – Oct. 31 Nov. 1 – Dec. 31
Jan. 1 – June 30 July 1 – Oct. 31 Nov. 1 – Dec. 31
4.
Burgos P 35,200 159,000 P194,200
Income Summary Bernal, Capital Burgos, Capital Salaries 12% int. on ending capital Balance – equally
3.
Bernal P 28,800 477,000 P505,800
Income Summary
Bernal P 90,000 49,000 255,150 P394,150
P360,000 x 5 = 460,000 x 5 = 400,000 x 2 =
P440,000 x 6 = 360,000 x 4 = 500,000 x 2 =
Burgos P 170,000 50,800 85,050 P305,850
Total P260,000 99,800 340,200 P700,000
P1,800,000 2,300,000 800,000 P7,900,000 / 12
P408,333
P 2,640,000 1,4400,000 1,000,000 P5,080,000 / 12
P423,333
700,000
PC – Chapter 3
page 6
Bernal, Capital Burgos, Capital Salaries 10% int. on ave. capital Balance – 40%, 60%
5.
267,567 432,433 Bernal P 100,000 40,833 126,734 P267,567
Burgos P200,000 42,333 190,100 P432,433
Total P300,000 83,166 316,834 P700,000
Income Summary Bernal, Capital Burgos, Capital Salaries 8% int. on beg. capital Bonus -.10 (NI – S – I ) Balance – 2:3
700,000 329,360 370,640 Bernal P100,000 28,800 43,600 156,960 P329,360
Burgos P100,000 35,200 235,440 P370,640
Total P200,000 64,000 43,600 392,400 P700,000
P 3-3 1.
Bilbao P 33,600
6% interest on capital Salaries Balance – 5:3:2 Total
2.
(149,000) P(115,400)
6% interest on capital Salaries Balance – 5:3:2 Total
3.
P 33,600 ( 64,000) P( 30,400)
6% interest on capital Salaries Bonus Balance – 5:3:2 Total
P 33,600
112,500 P 146,100
Bertol P 24,000 96,000 ( 89,400) P 30,600
Borja 14,400 80,000 ( 59,600) P 34,800
P
P 24,000 96,000 ( 38,400) P 81,600
P
,14400 80,000 ( 25,600) P 68,800
P 24,000 96,000 27,000 67,500 P214,500
P
14,400 80,000
45,000 P 139,400
Total P 72,000 176,000 (298,000) P(50,000) P 72,000 176,000 (128,000) P120,000 P 72,000 176,000 27,000 225,000 P500,000
P 3-4 1. Salaries Bonus Interest Balance Total
Basa P400,000 60,000 100,000 269,000 P829,000
Benito P200,000 40,000 90,000 269,000 P599,000
*B = 5% (P2,100,000 – B) = P100,000 x 3/5 = P60,000 x 2/5 = 40,000
Beltran
Bagnes
P 40,000 269,000 P309,000
P 94,000 269,000 P363,000
Total P 600,000 100,000* 324,000 1,076,000 P2,100,000
PC – Chapter 3
2.
page 7
Salaries Interest Balance Total
Basa P 400,000 100,000 (431,000) P 69,000
Benito P 200,000 90,000 (431,000) P(141,000)
Interest Bonus Salaries Total
Basa P 100,000 22,857 291,937 P 414,794
Benito P 90,000 15,238 145,968 P 251,206
3.
Beltran
Bagnes
40,000 (431,000) P (391,000)
P 94,000 (431,000) (P337,000)
P
Beltran P 40,000
Bagnes P 94,000
P 40,000
P 94,000
Total P 600,000 324,000 (1,724,000) (P800,000)
Total P 324,000 38,095 437,905* P 800,000
B = 5% (P800,000 – B) = P38,095 x 3/5 = P22,857; P38,095 x 2/5 = P15,238 *P437,905 x 4/6 = P291,937; P437,905 x 2/6 = P145,968
P 3-5 1. 5% interest on capital Salaries 20% bonus on net income Balance – capital ratio Total 2.
Bente P25,000 120,000 221,000 402,500 P768,500
Bala P 15,000 80,000 241,500 P 336,500
Sales Cost of Goods Sold Operating Expenses Income Taxes Income Summary
4,800,000
Income Summary Bente, Capital Bala, Capital
1,105,000
Total P 40,000 200,000 221,000 644,000 P1,105,000
2,100,000 1,000,000 595,000 1,105,000 768,500 336,500
Bente, Capital Bala, Capital Bente, Drawing Bala, Drawing
60,000 100,000 60,000 100,000
Bente and Bala Partnership
PC – Chapter 3
page 8
Statement of Changes in Partners’ Equity For the Year Ended December 31, 2009
Capital balances, January 1, 2009 Add Distribution of net income for 2009: Interests Salaries Bonus Balance - capital ratio Total share in net income Total Less Drawings Capital balances, December 31, 2009
Bente P 500,000
Bala P300,000
Total P 800,000
P
P 15,000 80,000
P
25,000 120,000 221,000 402,500 P 768,500
241,500 P 336,500
40,000 200,000 221,000 644,000 P1,105,000
P1,268,500 60,000 P1,208,500
P 636,500 100,000 P 536,500
P1,905,000 160,000 P1,745,000
P 3-6 1. Net sales (P1,525,000 – P25,000) Cost of goods sold: Purchases Less Merchandise inventory, end Gross profit Operating expenses (300,000 – 12,500 – 5,000 + 7,500 + 30,000) Income before income tax Income tax Net income 2.
P1,500,000 P980,000 365,000
615,000 P 885,000 320,000 P 565,000 197,750 P 367,250
Brenda P100,000 26,725 150,328 P277,053
Brosas
Salaries (P150,000 x 8/12) Additional 10% of NI after salaries Balance – original capital Total
P 90,197 P90,197
Total P100,000 26,725 240,525 P367,250
Beginning capital Add Share in net income Total Less Drawings Ending capital
Brenda P625,000 277,053 P902,053 100,000 P802,053
Brosas P375,000 90,197 P465,197 150,000 P315,197
Total P1,000,000 367,250 P1,367,250 250,000 P1,117,250
3.
P 3-7 Be on Top Company
PC – Chapter 3
page 9
Income Statement For the Year Ended December 31, 2009 Sales Cost of goods sold: Purchases Less: Purchase returns and allowances Purchase discounts Cost of goods available for sale Less Merchandise inventory, December 31 Gross profit Other operating income – interest Selling expenses (schedule 1) Administrative and general expenses (schedule 2) Operating income Interest expense Net income before Income Tax Income Taxes Net Income after Income Tax
P5,100,000 P4,920,000 P 99,000 138,000
237,000 P4,683,000 1,446,000
3,237,000 P1,863,000 27,000 ( 530,000) ( 801,800) P 558,200 ( 30,000) 528,200 184,870 P 343,330
Division o net income: Bathan P 60,000 100,000 67,215 P227,215
Interest Salaries Balance – divided equally Total Schedule 1 – Selling expenses Sales salaries Store supplies Depreciation Advertising
P480,000 19,200 21,300 9,500 P530,000
Buenas P 48,900 67,215 P116,115
Total P108,900 100,000 134,430 P343,330
Schedule 2 – General and administrative expenses Taxes P 36,500 Doubtful accounts 9,300 Others 756,000 Total P801,800
Be on Top Company Statement of Changes in Partners’ Equity For the Year Ended December 31, 2009
Original capital Add Share in net income Total Less Drawing Capital, December 31, 2008
Bathan P600,000 227,215 P827,215 144,000 P683,215
Be on Top Company Statement of Financial Position December 31, 2009
Buenas P489,000 116,115 P605,115 54,000 P551,115
Total P1,089,000 343,330 P1,432,330 198,000 P1,234,330
PC – Chapter 3
Assets Current assets: Cash Notes receivable Accounts receivable P186,000 Less Allowance for doubtful accounts 9,300 Interest receivable Merchandise inventory Prepaid taxes Store supplies Noncurrent assets Store furniture Less Accumulated depreciation Total assets Liabilities and Capital Current liabilities; Notes payable Accounts payable Advertising payable Taxes payable Interest payable Income Tax Payable Total liabilities Bathan, capital Buenas, capital Total partners’ capital Total liabilities and capital
page 10
P582,750 120,000 176,700 6,000 1,446,000 10,000 16,800 P222,000 21,300
P1,324,620 P 683,215 551,115 1,234,330 P2,558,950
Adjusting entries Adjustment for inventories is included in the closing entries
a.
Store Supplies Expense Store Supplies
19,200
Depreciation Expense Accumulated Depreciation
21,300
c.
d.
e. f.
Advertising Expense Advertising Payable
200,700 P2,558,950
P 360,000 756,000 9,500 10,500 3,750 184,870
3.
b.
P2,358,250
19,200
21,300 9,500 9,500
Prepaid Taxes Taxes
10,000
Taxes Taxes Payable Interest Expense Interest Payable
10,500
10,000
10,500 3,750 3,750
PC – Chapter 3
g. h. i.
page 11
Interest Receivable Interest Revenue
6,000
Doubtful Accounts Expense Allowance for Doubtful Accounts
9,300
6,000
Income Tax Income Tax Payable
9,300 184,870 184,870
Closing entries a. Merchandise Inventory Interest Revenue Purchase Returns and Allowances Purchase Discounts Sales Income Summary
1,446,000 27,000 99,000 138,000 5,100,000
b.
6,466,670
c.
d.
Income Summary General Expenses – Others Interest Expense Purchases Sales Salaries Taxes Store Supplies Expense Depreciation Expense Advertising Expense Doubtful Accounts Expense Income Taxes
6,810,000 756,000 30,000 4,920,000 480,000 36,500 19,200 21,300 9,500 9,300 184,870
Income Summary Bathan, Capital Buenas, Capital
343,330
Bathan, Capital Buenas, Capital Bathan, Drawing Buenas, Drawing
144,000 54,000
227,215 116,115
144,000 54,000
P 3-8 Bacani, Badeo and Barte Statement of Changes in Partners’ Equity
PC – Chapter 3
page 12
For the Three Years Ending December 31, 2009
Original capital Less: Share in net loss – 2007 (sch. 1) Drawing Capital, January 1, 2008 Add Share in net income – 2008 (sch. 2) Total Less Drawing Capital, January 1, 2009 Add Share in net income – 2009 (sch. 3) Total Less Drawing Capital, December 31, 2009
Bacani P1,000,000 ( 8,000) (72,000) P 920,000 107,200 P1,027,200 139,600 P 887,600 170,855 P1,058,455 163,200 P 895,255
Badeo P500,000 ( 14,000) (86,800) P 399,200 99,952 P 499,152 163,200 P 335,952 153,656 P 489,608 195,200 P 294,408
Barte P 400,000 ( 20,000) ( 96,000) P 284,000 93,040 P 377,040 177,200 P 199,840 145,489 P 345,329 169,600 P 175,729
Total P1,900,000 ( 42,000) (254,800) P1,603,200 300,192 P1,903,392 480,000 P1,423,392 470,000 P1,893,392 528,000 P1,365,392
Bacani P 96,000 60,000 ( 164,000) P( 8,000)
Badeo P 120,000 30,000 ( 164,000) P( 14,000)
Barte P 120,000 24,000 ( 164,000) P(20,000)
Total P336,000 114,000 ( 492,000) P( 42,000)
Bacani P 96,000 55,200 ( 44,000) P 107,200
Badeo P 120,000 23,952 ( 44,000) P 99,952
Barte P 120,000 17,040 ( 44,000) P 93,040
Total P336,000 96,192 ( 132,000) P300,192
Barte P 120,000 11,990
Total P336,000 85,403 8,100 40,497 P470,000
Schedule 1 – Distribution of 2007 net loss Salaries Interest on beginning capital Balance – equally Total Schedule 2 – Distribution of 2008 net income Salaries Interest on beginning capital Balance – equally Total Schedule 3 – Distribution of 2009 net income Bacani Badeo Salaries P 96,000 P 120,000 Interest on beginning capital 53,256 20,157 Bonus 8,100 13,499 13,499 Balance – equally Total P 170,855 P 153,656 Bonus = P470,000 – (P336,000 + P85,403) x 20/120 = P8,100
P 3-9 1.
2.
13,499 P 145,489
Balmes = 5/10 x 80% = 40% Bamban = 3/10 x 80% = 24% Buela = 2/10 x 80% = 16% Bagnes 20%
Corrected net income = P5...