(Three Partners) 13. Rey, Sam and Tim formed a partnership on May 31, 2020., with the following assets, measured at their fair market values contributed by each partner: Tim 180,000 15,000 Tim will personally settle the loan from his share in the profits of the partnership. The delivery equipment contributed by Rey has a mortgage of P540,000 and the partnership is to assume the responsibility for the loan. The partners agree to divided profits and losses 40% to Rey; 40% to Sam, and 20% to Tim. Rey 60,000 900,000 51,000 29,600 Sam 72,000 Cash Delivery equipment Computer equipment The partners further agreed to bring their respective capital interest in proportion to their profit and loss ratio. In this agreement, there shall be a: A. Bonus from Rey, P163,960 B. Bonus from Tim, P41,480 C. Bonus to Sam, P205,440 D. All of the above

(Three Partners) 13. Rey, Sam and Tim formed a partnership on May 31, 2020., with the following assets, measured at their fair market values contributed by each partner: Tim 180,000 15,000 Tim will personally settle the loan from his share in the profits of the partnership. The delivery equipment contributed by Rey has a mortgage of P540,000 and the partnership is to assume the responsibility for the loan. The partners agree to divided profits and losses 40% to Rey; 40% to Sam, and 20% to Tim. Rey 60,000 900,000 51,000 29,600 Sam 72,000 Cash Delivery equipment Computer equipment The partners further agreed to bring their respective capital interest in proportion to their profit and loss ratio. In this agreement, there shall be a: A. Bonus from Rey, P163,960 B. Bonus from Tim, P41,480 C. Bonus to Sam, P205,440 D. All of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On April 1, 2021, Odette and Lance formed a partnership with each contributing the following assets: Odette Lance Cash 120,000 80,000 Machinery and equipment 100,000 300,000 Building 900,000 Furniture and fixtures 40,000 The building is subject to a mortgage loan of 320,000, which is to be assumed by the partnership. Required: Prepare the journal entries for the investment of partners.
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.
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?
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 2,100,000.00 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
In the January 1, 2020 Kalaw and Borromeo formed partnership with each contributing the following: Kalaw Borromeo Cash 50,000 70,000 Equipments 50,000 75,000 Building 225,000 Furniture 10,000 Accounts payable 20,000 Loans Payable 100,000 All liabilities are to be assumed by the partnership. The partners agreed the equipments should be provided a 20% depreciation and the building has a market value of 200,000. The value of the furniture should be decreased by P2,000 There is an unrecorded liability in the books of Kalaw amounting to P2,000 and accrued interest on loans to Borromeo amounting to 5% of the loans. How much is the total capital of the partners before the agreed adjustments
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?
Jane and Kathy are joining their separate business to form a partnership. Cash and non-cash assets are to be contributed for a total capital of P300,000. The non-cash assets are to be contributed and liabilities to be assumed are as follows: Jane Kathy Book Value Fair Value Book Value Fair Value Receivable Inventories Equipment Payable P 22,500 22,500 37,500 11,250 P 22,500 33,750 30,000 11,250 P 60,000 67,500 7,500 P67,500 71,250 7,500 The partner's capital accounts are to be equal after all contributions of assets and assumptions of liabilities. Determine the total assets of the partnership.
On March 1, 2021, Candace and Noreen formed a partnership with each contributing the following assets: NOREEN CANDACE Cash 140,000 60,000 Office Equipment 150,000 50,000 Building 450,000 Furniture and Fixtures 20,000The building is subject to a mortgage loan of P180,000, which is to be assumed by the partnership. The partnership agreement provides that Candace and Noreen share profits and losses at 30% and 70%, respectively. Assuming that the partners agreed to bring their respective capital in proportion to their P&L ratios, and using Noreen capital as the base. Compute the capital account balance of Noreen as of March 1, 2021 Compute the additional cash to be invested by Candace
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 01, 2020, Malachi and Haggai agreed to form a partnership. The following are their assets and liabilities. ACCOUNTS MALACHI HAGGAI P 136,000 P 76,000 48,000 Cash Accounts Receivable 88,000 304,000 364,000 480,000 Inventories Machinery Accounts Payable Notes Payable 440,000 144,000 216,000 140,000 60,000 Malachi decided to pay-off his notes payable from his personal assets. It was also agreed that Haggai's inventories were overstated by P24,000 and Malachi machinery was over-depreciated P20,000. Haggai is to invest/withdraw cash in order to receive a capital credit that is 20% more than Malachi's total net investment in the partnership. Immediately after the formation, compute for the following: 1. Total cash of the partnership 2. Total assets of the partnership 3. Total capital of the partnership
- The December 31, 2020, balance sheet of the Abellana, Ballesteros, and Cabias partnership is summarized as follows: P325,000 Ballesteros loan 1,625,000 Abellana, capital Ballesteros, capital P325,000 325,000 Cash Other assets, at cost 650,000 Cabias, capital 650,000 P1,950,000 P1,950,000 The partners share profits and losses as follows: Abellana 20% Ballesteros 30% Cabias 50%
3.Octillery and Delibird agreed to list down the following assets to be contributed to the partnership: Octillery P20,000 15000 Delibird P30,000 15,000 40,000 Cash Inventory Building Furniture & Fixture The building is subject to a mortgage loan, already past due, in the amount of P10,000. Octillery paid this out of his personal funds aside from his cash contribution above. Partners agreed that Octillery should be credited for this. Partnership agreement calls for even division of profits and losses. Required What amount should be listed as capital for each of the partners?