Chapter 2 Nature of Partnership PDF

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CHAPTER 2 Nature and Formation of a Partnership E a. Cash Alonzo, Capital b. Accounts Receivable Allowance for Uncollectible Accounts Alonzo, Capital Inventories Alonzo, Capital x Equipment Alonzo, Capital x E 1. Cash Accounts Receivable Merchandise Inventory Equipment Allowance for Uncollectible Ac...

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CHAPTER 2 Nature and Formation of a Partnership E 2-1 a. Cash Alonzo, Capital

400,000

b.

Accounts Receivable Allowance for Uncollectible Accounts Alonzo, Capital

500,000

Inventories Alonzo, Capital P300,000 x 80% = P240,000

240,000

Equipment Alonzo, Capital P900,000 x 6/10 = P540,000 E 2-2 1. Cash Accounts Receivable Merchandise Inventory Equipment Allowance for Uncollectible Accounts Accounts Payable Notes Payable Aquino, Capital

540,000

c.

d.

Cash Asuncion, Capital P820,000 X 3/2 = P1,230,000 X 1/3 = P410,000 2.

Allowance for Uncollectible Accounts Aquino, Capital

400,000

50,000 450,000

240,000

540,000

450,000 180,000 270,000 125,000 10,000 105,000 90,000 820,000 410,000 410,000

5,000 5,000

Merchandise Inventory Aquino, Capital

30,000

Accumulated Depreciation Aquino, Capital Equipment

30,000 25,000

Allowance for Uncollectible Accounts Accounts Payable Notes Payable Cash Accounts Receivable Merchandise Inventory Equipment

30,000

55,000 10,000 105,000 90,000 450,000 180,000 270,000 125,000

E 2-3 1. a.

b.

c. c.

d.

2.

a.

b.

Amores, Capital Allowance for Uncollectible Accounts Merchandise Inventory Amores, Capital

25,000 25,000 160,000 160,000

Amores, Capital Prepaid Expenses Accounts Payable

30,000 72,000 102,000

Cash 1,717,000 Andrada, Capital (P1,612,000 – P25,000 + P160,000 + P30,000 = P1,717,000 Cash Accounts Receivable Merchandise Inventory Prepaid Expenses Allowance for Uncollectible Accounts Accounts Payable Amores, Capital

208,000 460,000 1,600,000 72,000

Cash Andrada, Capital

1,717,000

1,717,000

25,000 598,000 1,717,000

1,717,000 Amores and Andrada Company Statement of Financial Position January 1, 2014 Assets

Cash Accounts Receivable Less Allowance for Uncollectible Accounts Merchandise Inventory Prepaid Expenses Total Assets

P1,925,000 P460,000 25,000

435,000 1,600,000 72,000 P4,032,000

Liabilities and Capital Accounts Payable Amores, Capital Andrada, Capital Total Liabilities and Capital E 2-4 1. Cash Land Building Mortgage Payable Aguirre, Capital Aranas, Capital

P598,000 P1,717,000 1,717,000

3,434,000 P4,032,000

1,000,000 800,000 1,900,000 1,500,000 1,000,000 1,200,000

2.

Cash Land Building Mortgage Payable Aguirre, Capital Aranas, Capital

P 2-1 1. a. b. c.

d.

e.

f. g.

1,000,000 800,000 1,900,000 1,500,000 1,100,000 1,100,000

Merchandise, Inventory Acosta, Capital

50,000

Acosta, Capital Allowance for Uncollectible Accounts

75,000

50,000

Interest Receivable Acosta, Capital P375,000 x 6% x 2/12 = P3,750 Acosta, Capital Interest Payable P750,000 x 10% x 3/12 = P18,750 Accumulated Depreciation Acosta, Capital Furniture and Fixtures

75,000 3,750 3,750 18,750 18,750 450,000 150,000 600,000

Office Supplies Acosta, Capital

15,000

Cash Aguas, Capital

1,262,500

15,000 1,262,500

P2,700,000 + 50,000 – 75,000 + 3,750 – 18,750 -150,000 + 15,000 = 2,525,000/2 = 1,262,500

Acosta and Aguas Statement of Financial Position December 1, 2014 Assets Cash Notes Receivable Accounts Receivable Less Allowance For Uncollectible Accounts Interest Receivable Merchandise Inventory Office Supplies Furniture And Fixtures Total Assets Liabilities and Capital Notes Payable Accounts Payable Interest Payable Total Liabilities

P 1,862,500 375,000 P 2,250,000 225,000

2,025,000 3,750 650,000 15,000 1,200,000 P 6,131,250

P 750,000 1,575,000 18,750 P 2,343,750

Acosta, Capital Aguas, Capital Total Capital Total Liabilities and Capital P 2-2 1. a.

b.

c.

2.

a.

b.

c.

d. e.

April, Capital Allowance for Doubtful Accounts April, Capital Accrued Expenses Accumulated Depreciation Accounts Payable Accrued Expenses Allowance for Doubtful Accounts April, Capital Cash Accounts Receivable Merchandise Inventory Equipment Merchandise Inventory Arias, Capital Arias, Capital Allowance for Doubtful Accounts

P 2,525,000 1,263,500 3,787,500 P 6,131,250

9,000 9,000 21,000 21,000 112,500 345,000 21,000 9,000 800,000 187,500 450,000 400,000 250,000 50,000 50,000 7,500 7,500

Cash 357,500 Arias, Capital P800,000  40% x 60% = P1,200,000 - (800,000 + 50,000 – 7,500) = 357,500 Accumulated Depreciation Equipment Cash Accounts Receivable Merchandise Inventory Equipment Allowance for Doubtful Accounts Accounts Payable Accrued Expenses April, Capital April and Arias Statement of Financial Position October 1, 2014 Assets

Cash Accounts Receivable Less Allowance For Doubtful Accounts Merchandise Inventory

357,500

37,500 37,500 187,500 450,000 400,000 137,500 9,000 345,000 21,000 800,000

P 657,500 P 825,000 16,500

808,500 750,000

Equipment Total Assets

400,000 P2,616,000 Liabilities and Capital

Accounts Payable Accrued Expenses Total Liabilities

P 595,000 21,000

April, Capital Arias, Capital Total Capital Total Liabilities and Capital

P 800,000 1,200,000

P 2-3 1. Cash Accounts Receivable Merchandise Inventory Equipment Allowance for Doubtful Accounts Accounts Payable Albano, Capital Cash Accounts Receivable Merchandise Inventory Equipment Furniture and Fixtures Allowance for Doubtful Accounts Accounts Payable Abada, Capital 2.

P 616,000

2,000,000 P2,616,000

70,000 490,000 700,000 70,000 50,000 360,000 920,000 50,000 460,000 950,000 120,000 90,000 40,000 540,000 1,090,000

Abada, Capital Allowance for Uncollectible Accounts

10,000

Merchandise Inventory Abada, Capital

50,000

Accumulated Depreciation Abada, Capital Equipment

36,000 24,000

Accumulated Depreciation Abada, Capital Furniture and Fixtures

24,000 6,000

Cash Accounts Receivable Merchandise Inventory Equipment Allowance for Uncollectible Accounts Accounts Payable Albano, Capital

10,000

50,000

60,000

30,000 70,000 490,000 700,000 70,000 50,000 360,000 920,000

P 2-4 1. Abante, Capital Allowance for Doubtful Accounts

2.

150,000 150,000

Abante, Capital Merchandise Inventory

200,000

Accumulated Depreciation Abante, Capital Furniture and Equipment

210,000 240,000

Goodwil Abante, Capital P2,000,000 – (P2,700,000 -150,000 – 200,000 – 240,000 – 360,000 = P1,750,000) = P250,000

250,000

200,000

450,000

250,000

Cash Arevalo, Capital

3,000,000

Land Mortgage Payable Almonte, Capital

1,800,000

Accounts Receivable Merchandise Inventory Furniture and Equipment Goodwill Allowance for Uncollectible Accounts Accounts Payable Abante, Capital

840,000 1,000,000 600,000 250,000

Cash Arevalo, Capital

3,000,000

Land Mortgage Payable Almonte, Capital

1,800,000

P 2-5 1. a.

b.

3,000,000 300,000 1,500,000

240,000 450,000 2,000,000

3,000,000

300,000 1,500,000

Cash Merchandise Inventory Abueva, Capital

518,000 1,152,000

Accounts Receivable Merchandise Inventory Office Equipment Goodwill Allowance for Doubtful Accounts Accounts Payable Alano, Capital

1,792,000 253,000 206,000 145,000

1,670,000

150,000 576,000 1,670,000

Abueva and Alano Partnership Statement of Financial Position June 1, 2014 Assets Cash Accounts Receivable Less Allowance For Doubtful Accounts Merchandise Inventory Office Equipment Goodwill Total Assets Liabilities and Capital Accounts Payable Abueva, Capital Alano, Capital Total Liabilities and Capital P 2-6 1. 2. 3.

P1,080,000 P1,100,000 P1,320,000

P 518,000 P 1,792,000 150,000

1,642,000 1,405,000 206,000 145,000 P 3,916,000 P 576,000

P 1,670,000 1,670,000

3,340,000 P 3,916,000

P80,000 + P440,000 + P200,000 + P600,000 – P240,000 = P1,080,000 (P1,080,000 + P1,120,000) / 2 = P1,100,000 P2,200,000 x 60% = P1,320,000

Multiple Choice 1. B 2. A 3. B 4. D 5. D 6. B (P80,000 + P340,000 + P900,000) – P300,000 = P1,020,000 7. C Aster = P489,000 – P7,500 = P481,500 Amie = P273,000 - P9,000 – P5,400 = P258,600 8. C P9,000 + (P189,000 – P12,000) + P460,000 + P140,000 = P786,000 x 2 = P1,572,000 9. B (P600,000 x 1/2) – (P220,000 – P30,000) = P110,000 10. D Total partnership capital + Total partnership liabilities = Total partnership assets P600,000 + (P30,000 + P20,000) = P650,000 11. A P600,000/2 = P300,000- (200,000-20,000)= P120,000. 12. B P90,000 + P30,000 + P130,000 – P100,000 = P150,000 13. C P240,000 + (P150,000 + P 100,000 = P250,000) = P490,000 14. B (P240,000 + P150,000) x 60% = P234,000 (P240,000 + P150,000) x 40% = P156,000- P150,000 =P6,000 15. B 16. B P600,000 + P120,000 = P720,000 17. C P720,000 + P1,200,000/2 = P960,000 18. C P960,000 – P720,000 = P240,000 19. B 20. D P720,000 + P1,200,000 = P1,920,000 x 75% = P1,440,000 TM 6 1. F 5. T 9. T 13. T 17. F 2. F 6. T 10. T 14. T 18. T 3. F 7. F 11. F 15. F 19. T 4. T 8. T 12. T 16. T 20. T

TM 7 1. 2. 3. 4. 5. 6. 7. 8.

Limited partnership Industry, skill, talent or service Capitalist industrial partner Mutual agency De facto partnership Memorandum entry Nontrading partnership Partnership

TM 8 1. A 2. A 3. D 4. B

5. C 6. D 7. D 8. B

9. 10. 11. 12.

TM 9 Problem A 1. Cash Land Building Furniture and Fixtures Accounts Payable Alvis, Capital Ancheta, Capital 2.

3.

C C A C

9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 13. 14. 15. 16.

C A B A

Agreed value Nominal partner Articles of Co-Partnership Secret partner Securities and Exchange Commission Limited or LTD. Limited partner Loan Payable Capital share Bonus Arrive at Agreed value or FMV General professional partnership 17. 18. 19. 20.

B C D D

800,000 375,000 1,200,000 675,000 250,000 1,375,000 1,425,000

Cash Land Building Furniture and Fixtures Accounts Payable Alvis, Capital Ancheta, Capital

800,000 375,000 1,200,000 675,000

Cash Land Building Furniture and Fixtures Accounts Payable Alvis, Capital Ancheta, Capital

800,000 375,000 1,200,000 675,000

250,000 1,400,000 1,400,000

250,000 1,680,000 1,120,000

Problem B 1.

a.

Ablan, Capital Accounts Receivable

50,000 50,000

b.

c.

a.

b.

c. 2.

a.

b.

3.

a.

b.

Ablan, Capital Inventories

27,000

Ablan, Capital Other Assets

10,000

Amias, Capital Accounts Receivable

75,000

Amias, Capital Inventories

35,000

Amias, Capital Other Assets

18,000

27,000

10,000

75,000

35,000

18,000

Accounts Payable Notes Payable Ablan, Capital (P3,209,880 – P50,000 – P27,000 – P10,000) Cash Accounts Receivable Inventories Land Furniture and Fixtures

894,700 1,000,000 3,122,880

Accounts Payable Notes Payable Amias, Capital (P3,641,760 – P75,000 – P35,000 – P18,000) Cash Accounts Receivable Inventories Buildings Furniture and Fixtures

1,218,250 1,725,000 3,513,760

Cash Accounts Receivable Inventories Land Furniture and Fixtures Accounts Payable Notes Payable Ablan, Capital

55,000 1,122,680 573,175 3,015,000 251,725

Cash Accounts Receivable Inventories Buildings Furniture and Fixtures Accounts Payable Notes Payable Amias, Capital

111,770 2,764,450 1,265,510 2,141,335 173,945

55,000 1,122,680 573,175 3,015,000 251,725

111,770 2,764,450 1,265,510 2,141,335 173,945

894,700 1,000,000 3,122,880

1,218,250 1,725,000 3,513,760

Ablan and Amias Partnership Statement of Financial Position May 1, 2014 Assets Current Assets Cash Accounts Receivable Inventories Noncurrent Assets Land Buildings Furniture and Fixtures Total Assets

P 166,770 3,887,130 1,838,685 P 3,015,000 2,141,335 425,670

P 5,892,585

5,582,005 P 11,474,590

Liabilities and Capital Notes Payable Accounts Payable Total Liabilities

P 2,725,000 2,112,950

Ablan, Capital Amias, Capital Total Capital Total Liabilities and Capital

P 3,122,880 3,513,760

P 4,837,950

6,636,640 P 11,474,590...