Advanced Accounting by Guerrero Essay

Chapter 1Multiple natural selection answers and solutions1-1 aJoses detonating device should be credited for the market value of the ready reckoner contributed by him. 1-2 b(40,000 + 80,000) 2/3 = 180,000 x 1/3 = 60,000. 1-2 c1-3 a immediate paymentP100,000Land300,000Mortgage payable( 50,000) acquit additions (Julio, uppercase)P350,0001-4 b core peachy (P300,000/60%)P500,000Perlas sideline ______40%Perlas slap-upP200,000 slightNon- change asset contributed at market valueLandP 70,000Building90,000Mortgage Payable( 40,000)_120,000 gold ploughshareP 80,0001-5 d- Zero, because under the bonus method, a conveyance of title of superior is only required.1-6 bReyesSantos goldP200,000P300,000 take stock150,000Building400,000Equipment150,000Mortgage payable________( 100,000) bread asset ( neat)P350,000P750,0001-7 cAABBCC immediate paymentP 50,000Property at marketplace ValueP 80,000Mortgage payable( 35,000)Equipment at foodstuff Value______________P55,000 with child(p)P 50,000P 4 5,000P55,0002Chapter 11-8 aPPRRSS currencyP 50,000P 80,000P 25,000Computer at Market Value__25,000_________60,000CapitalP 75,000P 80,000P 85,0001-9 cMariaNora moneyP 30,000 mathematical product inventoryP 90,000Computer equipment160,000Liability( 60,000) furniture and Fixtures 200,000________ conglomeration contributionP230,000P190,000 summarise concur cap (P230,000/40%)P575,000Noras use up______60%Noras hold swellP345,000 little enthronement190,000 cash in to be investedP155,0001-10 dRoy Sam Tim hard cashP140,000 placement EquipmentP220,000Note payable_________( 60,000) ______profit asset investedP140,000P160,000 P agree swells, every bit (P300,000/3) =P100,0001-11 aLaraMitraCashP130,000P200,000Computer equipment50,000Note payable_________( 10,000)Net asset investedP130,000P240,000Good give (P240,000 P130,000) =P110,0001-12 aPerezReyesCashP 50,000P 70,000 position Equipment30,000 ware110,000 piece of furniture100,000Notes payable_______( 50,000)Net asset investedP 80,000P23 0,000 federation elementary Considerations and institution3Bonus method score pileus (net asset invested)P310,000Good testament MethodNet assets investedP310,000Add Goodwill (P230,000-P80,000)_150,000Net greatP460,0001-13 b necessitate seat of government of from each one partner (P300,000/2)P150,000Contributed crownwork of Ruiz integral assetsP105,000Less Liabilities__15,000__90,000Cash to be contributed by RuizP 60,0001-14 d correspond assetsCashP 70,000Machinery75,000Building_225,000P370,000Less Liabilities (Mortgage payable)__90,000Net assets (equal to Ferrers capital account)P280,000 catchment basin by Ferrers P & angstrom unit L handle percentage____70% lend confederacy capitalP400,000mandatory capital of Cruz (P400,000 X 30%)P120,000Less Assets already contributedCashP 30,000Machinery and equipment25,000article of furniture and fixtures__10,000__65,000Cash to be invested by CruzP 55,0001-15 d make up assets of C BorjaCashP 2,500Accounts receivable (P10,000-P500)9,5 00 swop inventory (P15,000-P3,000)12,000Fixtures__20,000P 44,000Asset contributed by D. ArceCashP 20,000 swap__10,000__30,000Total assets of the federationP 74,0004 Chapter 11-16 aCash to be invested by Mendezfamiliarised capital of Lopez (2/3)unadapted capitalP158,400Adjustments prepay expenses17,500accrued expenses( 5,000) requital for mischievously debts (5% X P100,000)_( 5,000) correct capitalP165,900Total confederacy capital (P165,900/2/3)P248,850 cipher by Mendezs bear on Mendezs capitalP 82,950Less deal contributed__50,000Cash to be invested by MendezP 32,950Total CapitalAdjusted capital of LopezP165,900Contributed capital of Mendez__82,950Total capitalP248,8501-17 dMoran, capital (40%)CashP 15,000Furniture and Fixtures_100,000P115,000 change integrity by Morans P & adenylic acid L helping percentage______40%Total partnership capitalP287,500Multiply by Nakars P & ampere L bundle percentage______60%Required capital of credit of NakarP172,500Contributed capital of Nakari ntersection inventoryP 45,000Land15,000Building__65,000Total assetsP125,000Less Liabilities__30,000P 95,000Required cash investment by NakarP 77,5001-18 cGarcias seted capital (see chronicle 1)P40,500 rive by Garcias P & L share percentage______40%Total partnership capitalP101,250Flores P & L share percentage______60%Flores capital creditP 60,750Flores contributed capital (see schedule 2)__43,500Additional cash to be invested by FloresP 17,250 union Basic Considerations and geological formation 5Schedule 1Garcia, capital maladjusted balanceP 49,500Adjustments compile depreciation( 4,500) gross profit for provisional account( 4,500)Adjusted balanceP 40,500Schedule 2Flores capitalUnadjusted balanceP 57,000Adjustments hive away depreciation ( 1,500) perimeter for ambiguous accounts( 12,000)Adjusted balanceP 43,5001-19 dOrtizPonceTotal( 60%)( 40%)Unadjusted capital balancesP133,000P108,000P241,000AdjustmentsAllowance for bad debts( 2,700)( 1,800)( 4,500)Inventories3,0002,000 5,000 accumulated expenses_( 2,400)( 1,600)( 4,000)Adjusted capital balancesP130,900 P106,000 P237,500Total capital in advance the formation of the recent partnership (see above)P237,500Divide by the conglomeration percentage share of Ortiz and Ponce (50% + 30%)______80%Total capital of the partnership sooner the admission of RoxasP296,875Multiply by Roxas arouse______20%Cash to be invested by RoxasP 59,3751-20 d product to be invested by GomezTotal partnership capital (P180,000/60%)P300,000Gomezs capital (P300,000 X 40%)P120,000Less Cash investment__30,000Merchandise to be invested by GomezP 90,000Cash to be invested by JocsonAdjusted capital of JocsonTotal assets (at agreed valuations)P180,000Less Accounts payable__48,000P132,000Required capital of Jocson_180,000Cash to be invested by JocsonP 48,0006Chapter 11-21 bUnadjusted Ell, capital (P75,000 P5,000)P 70,000Allowance for doubtful accounts( 1,000)Accounts payable( 4,000)Adjusted Ell, capitalP 65,0001-22 cTotal partnership capital (P113,640/1/3)P340,920Less Davids capital_113,640Cortezs capital after adjustmentsP227,280Adjustments madeAllowance for doubtful account (2% X P96,000)1,920Merchandise inventory( 16,000) pay expenses( 5,200) accumulated expenses___3,200Cortezs capital before adjustmentsP211,2001-23 aTotal assets at handsome value P4,625,000Liabilities (1,125,000)Capital balance of FlorP3,500,0001-24 cTotal capital of the partnership (P3,500,000 70%)P5,000,000Eden agreed profit & overtaking ratio30%Eden agreed capital 1,500,000Eden contributed capital at bring together value 812,000Allocated cash to be invested by EdenP 688,0001-25 c__Rey __Sam_ __Tim __Total_Contributed capital (assets-liabilities)P471,000 P291,000 P195,000 P957,000 hold capital (profit and loss ratio) 382,800 382,800 191,400 957,000Capital transfer (Bonus)P 88,200 P(91,800) P 3,600 1-26 dTotal agreed capital (P90,000 40%)P225,000Contributed capital of Candy (P126,000+P36,000-P12,000) 150,000Total agreed capital (P9 0,000 40%) 225,000Candy, agreed capital interest 60%Agreed capital of Candy 135,000Contributed capital of Candy 150,000WithdrawalP 15,000 fusion Basic Considerations and establishment 71-27 aTotal agreed capital (210,000 70%) P300,000Noras interest 30%Agreed capital of NoraP 90,000Cash invested 42,000Cash to be invested by NoraP 48,0001-28 aContributed capital of may (P194,000 P56,000)P138,000Agreed capital of May (P300,000 x 70%) 210,000Cash to be invested by May P 72,0001-29 c__Alex__Carlos___Total__Contributed capitalP100,000P84,000P184,000Agreed capital 92,000 92,000 184,000Capital investedP( 8,000)P 8,000 8Chapter 1SOLUTIONS TO PROBLEMS trouble 1 11.a.Books of Pedro Castro will be retained by the partnershipTo adjust the assets and liabilities of Pedro Castro.1.Pedro Castro, Capital600Merchandise Inventory6002.Pedro Castro, Capital200Allowance for wild Debts2003.Accrued please Receivable35Pedro Castro, Capital35 figuringP1,000 x 6% x 3/12=P15P2,000 x 6% x 2/12=_20Total P354.Pedro Castro, Capital100Accrued hobby Payable100(P4,000 x 5% x 6/12 = P100)5.Pedro Castro, Capital800 amass derogation Furniture and Fixtures8006.Office Supplies400Pedro Castro, Capital400To record the investment of Jose Bunag.Cash15,067.50Jose Bunag, Capital15,067.50 numerationPedro Castro, Capital(1)P600P31,400(2)20035(3)(4)100400(6)(5)___800P1,700P31,835P30,135Jose Bunag, Capital1/2 x P30,135 = P15,067.50Partnership Basic Considerations and organic law 9b.A new set of books will be employBooks of Pedro CastroTo adjust the assets and liabilities. think fate (a).To close the books.Notes Payable4,000Accounts Payable10,000Accrued participation Payable100Allowance for terrible Debts1,200 store derogation Furniture and Fixtures1,400Pedro Castro, Capital30,135Cash6,000Notes Receivable3,000Accounts Receivable24,000Accrued raise Receivable35Merchandise Inventory7,400Office Supplies400Furniture and Fixtures6,000 modern Partnership BooksTo record the investment of Pedro Cas tro.Cash6,000Notes Receivable3,000Accounts Receivable24,000Accrued Interest Receivable35Merchandise Inventory7,400Office Supplies400Furniture and Fixtures6,000Notes Payable4,000Accounts Payable10,000Accrued Interest Payable100Allowance for painful Debts1,200 store derogation Furniture and Fixtures1,400Pedro Castro, Capital30,135To record the investment of Jose Bunag.Cash15,067.50Jose Bunag, Capital15,067.5010Chapter 12. Castro and Bunag PartnershipBalance aeroplaneOctober 1, 2008A s s e t sCashP21,067.50Notes receivable3,000.00Accounts receivableP 24,000Less Allowance for bad debts___1,20022,800.00Accrued interest receivable35.00Merchandise inventory7,400.00Office supplies400.00Furniture and fixtures6,000Less lay in depreciation___1,400__4,600.00Total AssetsP59,302.50Liabilities and CapitalNotes payableP 4,000.00Accounts payable10,000.00Accrued interest payable100.00Pedro Castro, Capital30,135.00Jose Bunag, Capital_15,067.50Total Liabilities and CapitalP59,302.50Problem 1 2Con tributed CapitalsJoseCapital before adjustmentP 85,000Notes Payable62,000Undervaluation of inventory13,000Underdepreciation( 25,000)P 135,000PedroCash28,000PabloCash11,000 marketable securities_57,500___68,500Total contributed capitalP 231,500Agreed CapitalsBonus MethodJose (P231,500 x 50%)P115,750Pedro (P231,500 x 25%)57,875Pablo (P231,500 x 25%)__57,875TotalP231,500Partnership Basic Considerations and system 11Goodwill Method. To have a goodwill, the only possible base is the capital of Pablo. The computation isContributedAgreedCapitalCapitalGoodwillJoseP135,000P137,000 (50%)2,000Pedro28,00068,500 (25%)40,500Pablo__68,500__68,500 (25%)_____TotalP231,500274,00042,500Total agreed capital (P68,500 25%) = 274,000Jose, Pedro and Pablo PartnershipBalance winding-sheetJune 30, 2008Bonus MethodGoodwill MethodAssetsCashP 49,000P 49,000Accounts receivable (net)48,00048,000Marketable securities57,50057,500Inventory85,00085,000Equipment (net)45,00045,000Goodwill________42,500TotalP284,500 P327,000Liabilities and CapitalAccounts payableP 53,000P 53,000Jose, capital (50%)115,750137,000Pedro, capital (25%)57,87568,500Pablo, capital (25%)__57,875__68,500TotalP284,500P327,000Problem 1 31.Books of Pepe BascoTo adjust the assets.a.Pepe Basco, Capital3,200Estimated Uncollectible Account3,200b.Pepe Basco, Capital500accrued depreciation Furniture and Fixtures500 12Chapter 1To close the books.Estimated Uncollectible Account4,800 stash away derogation Furniture and Fixtures1,500Accounts Payable3,600Pepe Basco, Capital31,500Cash400Accounts Receivable16,000Merchandise Inventory20,000Furniture and Fixtures5,0002.Books of the PartnershipTo record the investment of Pepe Basco.Cash400Accounts Receivable16,000Merchandise Inventory20,000Furniture and Fixtures5,000Estimated Uncollectible account4,800Accumulated disparagement Furniture and Fixtures1,500Accounts Payable3,600Pepe Basco, Capital31,500To record the investment of Carlo Torre.Cash47,250Carlo Torre, Capital47,250Computatio nPepe Basco, capital (Base)P31,500Divide by Pepe Bascos P & L ratio___40%Total agreed capitalP78,750Multiply by Carlo Torres P & L ratio___60%Cash to be invested by Carlo TorreP47,250Problem 1 4a.Roces books will be used by the partnershipBooks of Sales1.Adjusting Entries(a)Sales, Capital3,200Accumulated Depreciation Fixtures3,200(b)Goodwill32,000Sales, Capital32,000Partnership Basic Considerations and Formation 132.Closing EntryAllowance for braggy Debts12,800Accumulated Depreciation Delivery Equipment8,000Accumulated Depreciation Fixtures91,200Accounts Payable64,000Notes Payable40,000Accrued Taxes8,000Sales, Capital224,000Cash4,800Accounts Inventory72,000Merchandise Inventory192,000 prepay Insurance3,200Delivery Equipment48,000Fixtures96,000Goodwill32,000Books of Roces (Books of the Partnership)1.Adjusting Entries(a)Roces, Capital1,600Allowance for dismal Debts1,600(b)Accumulated Depreciation Fixtures16,000Roces, Capital16,000(c)Merchandise Inventory8,000Roces, Capit al8,000(d)Goodwill40,000Roces, Capital40,0002.To record the investment of Sales.Cash4,800Accounts Receivable72,000Merchandise Inventory192,000prepaid Insurance3,200Delivery Equipment48,000Fixtures96,000Goodwill32,000Allowance for liberal Debts12,800Accumulated Depreciation Delivery Equipment8,000Accumulated Depreciation Fixtures91,200Accounts Payable64,000Notes Payable40,000Accrued Taxes8,000Sales, Capital224,00014Chapter 1b.Sales books will be used by the partnershipBooks of Roces1.Adjusting Entries pull in urgency (a).2.Closing EntryAllowance for Bad Debts1,600Accumulated Depreciation Delivery Equipment12,800Accumulated Depreciation Fixtures64,000Accounts Payable104,000Accrued Taxes6,400Roces, Capital224,000Cash14,400Accounts Receivable57,600Merchandise Inventory132,800 pay Insurance4,800Delivery Equipment19,200Fixtures144,000Goodwill40,000Books of Sales (Books of the Partnership)1.Adjusting Entries work through Requirement (a).2.To record the investment of Roces.Cash14,400A ccounts Receivable57,600Merchandise Inventory132,800Prepaid Insurance4,800Delivery Equipment19,200Fixtures144,000Goodwill40,000Allowance for Bad Debts1,600Accumulated Depreciation Delivery Equipment12,800Accumulated Depreciation Fixtures64,000Accounts Payable104,000Accrued Taxes6,400Roces, Capital224,000Partnership Basic Considerations and Formation 15c.A new set of books will be opened by the partnershipBooks of Roces1.Adjusting EntriesSee Requirement (a).2.Closing EntrySee Requirement (b).Books of Sales1.Adjusting EntriesSee Requirement (a).2.Closing EntrySee Requirement (a).New Partnership BooksTo record the investment of Roces and Sales.Cash19,200Accounts Receivable129,600Merchandise Inventory324,800Prepaid Insurance8,000Delivery Equipment (net)46,400Fixtures (net)84,800Goodwill72,000Allowance for Bad Debts14,400Accounts Payable168,000Notes Payable40,000Accrued Taxes14,000Roces, Capital224,000Sales, Capital224,00016Chapter 1Problem 1 51.To close Magnos books.Allowance for Ba d Debts1,000Accounts Payable6,000Notes Payable10,000Accrued Interest Payable300R. Magno, Capital24,700Cash5,000Accounts Receivable13,000Merchandise Inventory12,000Equipment3,000 new(prenominal) Assets9,0002.To adjust the books of Lagman.Goodwill8,000Allowance for Bad Debts210J. Lagman, Capital7,7903.To record the investment of Magno.Cash5,000Accounts Receivable13,000Merchandise Inventory12,000Equipment3,000 early(a) Assets9,000Allowance for Bad Debts1,000Accounts Payable6,000Notes Payable10,000Accrued Interest Payable300R. Magno, Capital24,700To adjust the investments of the partners.Cash10,300R. Magno, Capital10,300(P35,000 P24,700 = P10,300)J. Lagman, Capital35,790Cash23,300Accounts Payable to J. Lagman12,490(P63,000 + P7,790 = P70,790 P35,000 = P35,790)Partnership Basic Considerations and Formation 174. Lagman and MagnoBalance sheet of paperDecember 31, 2008A s s e t sCashP Accounts receivableP34,000Less Allowance for bad debts1,21032,790Merchandise inventory21,000Equipment8, 000Other assets46,000Goodwill___8,000Total AssetsP115,790Liabilities and CapitalAccounts payableP 18,000Notes payable15,000Accrued interest payable300Accounts payable to J. Lagman12,490J. Lagman, capital35,000R. Magno, capital__35,000Total Liabilities and CapitalP115,790Problem 1 61.Books of ToledoToledo, Capital4,800Allowance for Bad Debts (15% x P32,000)4,800Books of UretaUreta, Capital2,400Allowance for Bad Debts (10% x P24,000)2,400Cash (90% x P12,000)10,800Loss from Sale of Office Equipment1,200Office Equipment12,000Toledo, Capital (1/4 x P1,200)300Ureta, Capital900Loss from Sale of Office Equipment1,20018Chapter 12.New Partnership BooksCash3,200Accounts Receivable32,000Merchandise40,000Office Equipment10,000Allowance for Bad Debts4,800Accounts Payable10,000Notes Payable2,000Toledo, Capital68,400To record the investment of Toledo.Cash22,800Accounts Receivable24,000Merchandise36,000Toledo, Capital300Allowable for Bad Debts2,400Accounts Payable16,000Ureta, Capital64,700To record the investment of Ureta.3.Cash3,400Ureta, Capital3,400To record Uretas cash contribution.ComputationToledo, capital (P68,400 P300)P 68,100Divide by Toledos profit share percentage____50%Total agreed capital of the partnershipP136,200Multiply by Uretas profit share percentage____50%Agreed capital of UretaP 68,100Ureta, capital__64,700Cash contribution of UretaP 3,400orToledo, capital (P68,400 P300)P 68,100Less Ureta, capital__64,700Cash contribution of UretaP 3,400Partnership Basic Considerations and Formation 194. Toledo and Ureta PartnershipBalance pollJuly 1, 2008A s s e t sCashP 29,400Accounts receivableP56,000Less Allowance for bad debts__7,20048,800Merchandise76,000Office equipment__10,000Total AssetsP164,200Liabilities and CapitalAccounts payableP 26,000Notes payable2,000Toledo, capital68,100Ureta, capital__68,100Total Liabilities and CapitalP164,200