On January 1, 2020, Mr. Ann and Ms. Buoy agreed to form a partnership. The partnership contributions are as follows Mr. Ann Ms. Buoy Cash 50,000.00 120,000.00 Accounts receivable 360,000.00 1,080,000.00 Inventories 216,000.00 360,000.00 Land 1,080,000.00 Building 900,000.00 Equipment 90,000.00 90,000.00 Accounts Payable (336,000.00) (450,000.00) Capital P1,460,000.00 P2,100,000.00 |The partners agreed the following *The recovereable amount of the partners respective accounts receivable are P300,000 for Mr. Ann and P760,000 for Ms. Buoy *The inventory contributed by Ms. Buoy includes obselete items with recorded cost of P20,000.00 *The land has an attached mortgage of P180,000, which the partnership will assume *The equipment contributed by Ms. Buoy has a fair value of P130,000. "Mr. Ann has unrecorded accounts payable of P100,000. The partnership assumes the obligation How much is the initial capital of Ms. Buoy

On January 1, 2020, Mr. Ann and Ms. Buoy agreed to form a partnership. The partnership contributions are as follows Mr. Ann Ms. Buoy Cash 50,000.00 120,000.00 Accounts receivable 360,000.00 1,080,000.00 Inventories 216,000.00 360,000.00 Land 1,080,000.00 Building 900,000.00 Equipment 90,000.00 90,000.00 Accounts Payable (336,000.00) (450,000.00) Capital P1,460,000.00 P2,100,000.00 |The partners agreed the following The recovereable amount of the partners respective accounts receivable are P300,000 for Mr. Ann and P760,000 for Ms. Buoy The inventory contributed by Ms. Buoy includes obselete items with recorded cost of P20,000.00 The land has an attached mortgage of P180,000, which the partnership will assume The equipment contributed by Ms. Buoy has a fair value of P130,000. "Mr. Ann has unrecorded accounts payable of P100,000. The partnership assumes the obligation How much is the initial capital of Ms. Buoy

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On the December 31, 2020, the Statement of Financial Position of LOVE Partnership shows the following data with profit or loss sharing of 5:3:2.CashP10,000,000Noncash Asset40,000,000Total LiabilitiesP20,000,000Ona10,000,000Vina15,000,000Ena5,000,000On January 01, 2021, Lina is admitted to the new partnership named LOVE by investing P20,000,000 for 50% capital interest in the new partnership. What is the new capital balance of Ena after Lina’s admission in LOVE Partnership?
On December 31, 2020, the accounting records of the Friends Partnership included the following information: Raflyn, drawing (debit balance) P 120,000 Jane, drawing (debit balance) Pablo, loan Raflyn, capital Jane, capital Pablo, capital 45,000 150,000 615,000 502,500 540,000 Total assets amounted to P2,392,500, including P262,500 cash, and liabilities totaled P750,000. The partnership was liquidated on December 31, 2020, and Jane received P416,250 cash pursuant to the liquidation. Raflyn, Jane, and Pablo share net income and losses in a 5:3:2 ratio, respectively. Compute for the total loss on realization.
14. On March 1, 2020, Apalla and Cabañero formed a partnership with each contributing the following assets: Cabañero P502,500 P 1,172,500 1,256,250 3,768,750 Apalla Cash Machinery and equipment 418,750 Building Furniture and fixtures 167,500 The building is subject to mortgage loan of P1,340,000, which is to be assumed by the partnership. Agreement provides that Apalla and Cabañero share profits and losses 30% and 70%, respectively. On March 1, 2020 the balance in Cabañero's capital account should be: a. P6,197,500 b. P5,259,500 C. P5,108,750 d. P4,857,500 15. The same information in the previous number, except that the mortgage loan is not assumed by the partnership. On March 1, 2020 the balance in Cabañero's capital account should be: a. P6,197,500 b. P5,259,500 C. P5,108,750 d. P4,857,500
On January 02, 2019, the business assets and liabilities of Gail Anne & Precious were as follows: Gail AnnePrecious CashP28,000P62,000 Receivables 200,000 600,000 Inventories 120,000 200,000 PPE 650,000 535,000 Other Assets 2,000 3,000 Accounts Payable 180,000 250,000 Notes Payable 200,000 350,000 Gail Anne and Precious agreed to form a partnership by contributing their net assets subject to the following adjustments: ➢ Receivables of P20,000 in Gail Anne’s books and P40,000 in Precious’ books are uncollectible ➢ Inventories of P6,000 and P7,000 in the respective books of Gail Anne and Precious are worthless ➢ Other assets in both books are to be written off ➢ Accrued interest on notes payable equal to 10% is to be established. The note payable of Gail Anne was dated August 01, 2018 while that of Precious, was dated April 01, 2018. The balances of selected accounts after the formation are: Assets…
On December 31, 2020, the accounting records of Alma, Brenda, and Dely partnership included the following balances: Alma, drawing 60,000; Dely, drawing P22,500; Brenda loan P75,000; Alma, capital 307,500; Brenda, capital P251,250 and Dely, capital P270,000. The total assets of the partnership amounted to P1,196,250, including P131,250 cash, and partnership liabilities totaled P375,000. The partnership was liquidated Dec. 31 and Dely received P208,125 cash pursuant to the liquidation. Alma, Brenda and Dely share profits and losses in a 5:3:2 ratio, respectively. The cash balance after payment of liabilities is: Group of answer choices 999,375 774,375 886,875 624,375
On May 1, 2020, Cruz and Ferrer formed a partnership with each contributing the following assets: Cruz Ferrer Cash P 30,000 P 70,000 Machinery and Equipment Building 25,000 75,000 225,000 Furniture and Fixtures 10,000 The building is subject to a mortgage loan of P90,000 which is to be assumed by the partnership. The partnership agreement provides that Cruz and Ferrer share profits and losses 30 percent and 70 percent, respectively. Assuming that the partner agreed to bring their respective capital in proportion to their respective profit and loss ratio, and using Ferrer's capital as the base, how much cash is to be invested by Cruz?
T, B and V, a partnership formed on January 1, 2021 had the following initial investments:T P 100,000B 150,000V 225,000The partnership agreement stated that profits and losses are to be shared equally by the partners afterconsideration is made for the following:• Salaries allowed to partners: P60,000 for T; P48,000 for B and P36,000 for V.• Average partner’s capital balances during the year shall be allowed 10%.Additional information:• On June 30, 2021, T invested an additional P60,000.• V withdrew P70,000 from the partnership on September 30, 2021.• Share on the remaining profit was P3,000 for each partner. 7. The partnership net profit for 2021 before salaries, interest and partner’s share on the remainder was__________8. The total partnership capital on December 31, 2021 was ____________
On January 1, 2019, David and Enrile decided to form a partnership. At the end of the year, the partnership had a credit balance in its income summary account of P 120,000. The capital accounts of the partnership show the following transactions below. David Balance, January 1 P 300,000 Additional Investment, July 16 80,000 Withdrawal, September 15 ( 30,000) Enrile Balance, January 1 P 250,000 Additional Investment, May 8 100,000 Withdrawal, October 15 ( 75,000) Assuming that an interest if 20% per annum is given on average capital and the balance of the profits is divided equally, how much is the share of Enrile and David in profits for the year 2019?
On January 1, 2022, A and B decided to form a partnership by contributing their respective assets and equities subject to adjustments. Cash Accounts Receivable Building A 50,000 20,000 520,000 B 40,000 10,000 30,000 Computer Equipment An Allowance for Doubtful Accounts of 3% of accounts receivable is set up for each partner, and a mortgage of P30,000 is assumed from building contribution. Compute the adjusted capital account of A after the formation.
On January 1, 2020, Benedict and Lord decided to form the partnership. At the end of the year, thepartnership made a net income of P1,056,000 after allocation of partners’ interest. The capital accounts ofthe partnership show the following transactions. BENEDICT, CAP LORD, CAP DR CR DR CR JAN 1 - 400,000 - 250,000 APR 1 50,000 - - - JUNE 1 - - - 100,000 AUG 1 - 100,000 - - SEPT 1 - - 30,000 - OCT 1 - 50,000 10,000 - DEC 1 - 40,000 - 50,000 Assuming that the partners’ return on invested capital is 20% per annum, given on average capital for the year and the balance of profits is allocated equally, the allocation of profits should be:A. 1,212,000 988,000 C. 612,000 588,000B. 712,000 488,000 D. 112,000 88,000
On April 1, 2020, Lana, Brent and Marie formed LBM Partnership with original contributions ofP400,000, P100,000 and P500,000, respectively. The articles of co-partnership provides that profit orloss shall be distributed under the following terms:• Lana, Brent and Marie shall be entitiled to monthly salaries of P1,000, P2,000 and P3,000 eachrespectively.• 10% return on the original capital contribution.• As managing partner, Brent shall receive bonus equal to 20% of net income after salaries andinterest but before bonus.• The remainder shall be distributed on the basis of original capital ratio.During the year, the partners regularly withdraw 1⁄4 of their monthly salary. The December 31, 2020statement of financial position of LBM Partnership shows that the capital balance of Lana is P531,080.What is the share of Brent in the partnership net income?A. 108,038.75 C. 105,820B. 106,070 D. 103,195
86. On January 1, 2010, A and B agreed to form a partnership contributing their respective assets and equities subject to adjustments. On that date, the following were provided; A P28,000 200,000 B P62,000 600,000 200,000 Cash Accounts receivable Inventories 120,000 Land 600,000 Building Furniture & fixtures 500,000 50,000 2,000 180,000 200,000 620,000 35,000 3,000 250,000 350,000 Intangible assets Accounts payable Other liabilities Capital 800,000 The following adjustments were agreed upon: a. Accounts receivable of P20.000 and P40,000 are uncollectible in A's and B's respective books. b. Inventories of P6,000 and P7,000 are worthless in A's and B's respective books. c. Intangible assets are to be written off in both books. In preparing statement of financial position, how much is the total assets of the partnership? A. P2,311,000 O B. P2,395,000 O C. P2,400,00 O D. P2,431,000