Partnership and Corporation Accounting

Chapter 2 - Partnership Operations and Financial Reporting

Problem #1
Requirement 1
Books of the Partnership

Accounts receivable 72,000

Merchandise Inventory 241,000

Prepaid expenses 17,000

Office equipment 276,000

Allowance for Uncollectible accounts 10,500

Accounts payable 191,000

San Mateo, Capital 404,500

To record the investment of San Mateo.

Cash 404,500

Rodriguez, Capital 404,500

To record the investment of Rodriguez.

Requirement 2
San Mateo and Rodriguez
Statement of Financial Position
June 30, 2010

ASSETS

Cash 404,500

Accounts receivable 72,000

Allowance for Uncollectible accounts (10,500) 61,500

Merchandise Inventory 241,000

Prepaid expenses 17,000

Office equipment
 276,000

Total Assets 1,000,000

LIABILITIES AND CAPITAL

Accounts payable 191,000

San Mateo, Capital 404,500

Rodriguez, Capital 404,500

Total Liabilities and Capital 1,000,000

Requirement 3

Income summary 450,000

San Mateo, Drawing 300,000

Rodriguez, Drawing 150,000

San Mateo, Capital 52,000

San Mateo, Drawing 52,000

Rodriguez, Capital 80,000

Rodriguez, Drawing 80,000

Problem #2
Dondoyano and Dellosa
Statement of Comprehensive Income
For the ten months ending December 31, 2010

Sales, net of sales returns and allowances 228,000

Cost of sales

Purchases 196,000

Less: Ending inventory (75,500) 120,500

Gross Profit
 107,500

Less: Operating expenses (60,000-950+1,550) 60,600

Depreciation expense (P45,000 x 20%) 9,000

Net income 37,900

Distribution of profit:
Dondoyan
o Dellosa Total

Salary 30,000 - 30,000

Bonus (10% x (P37,900-30,000) 790 - 790

Balance (P37,900 - 30,790)

P7,110 x 125/200 4,444 4,444

P7,110 x 75/200 2,666 2,666

35,234 2,666 37,900

Requirement 2

Dondoyano, Capital

Initial investment 125,000

Share in net income 35,234

160,234

Dellosa, Capital

Initial investment 75,000

Share in net income 2,666

77,666

Problem #5
Requirement A - P270,000 profit

Geron 81,000

Apalisoc 67,500
Tuddao 121,500

Requirement B - P240,000 loss

Geron (72,000)

Apalisoc (60,000)

Tuddao (108,000)

Problem #6

Computation of average capital

Jamili 275,000

Sala

Jan1 (P200,000 x 8/12) 133,333

Sept 1 (P275,000 x 4/12) 91,667

225,000

Total average capital of partnership 500,000

Distribution of profit of P800,000

Jamili 440,000

Sala 360,000

Problem #7

Orosco 1,125,000

Castillo 875,000

Problem #8
Requirement A - Profit is P405,000

Parale 140,000
Demafile
 s 115,000
150,00
Lopez 0

Requirement B - Profit is P270,000

Parale 80,000
Demafile
s 70,000

Lopez 120,000

Requirement C - Loss is P315,000

Parale (180,000)
Demafile
s (125,000)

Lopez (10,000)

Requirement D - Profit is P350,000

Parale 100,000

Demafiles 50,000

Lopez 200,000

Problem #9
Profit is P600,000

Triguero 332,000

Tria 268,000

Problem #10
Profit is P420,000

Sabio 195,500

Trojillo 224,500

Problem #12
Requirement A - Profit is P1,000,000
Abelon
 440,000

Hernandez 560,000

Requirement B - Profit is P700,000

Abelon 240,000

Hernandez 460,000

Requirement C - Loss of P80,000

Abelon (280,000)

Hernandez 200,000

Problem #13
Requirement A - Profit is P720,000

Ancheta 240,000

Sinad 240,000

Piator 240,000

Requirement B - Profit is P360,000

Ancheta 120,000

Sinad 180,000

Piator 60,000

Requirement C - Loss is P360,000

Ancheta (120,000)

Sinad 60,000

Piator (300,000)

Requirement D - Profit of P2,700,000

Ancheta 900,000

Sinad 1,500,000
Piator
 300,000

Problem #14
Requirement A - Profit of P1,580,000

Bautista 640,000

Pineda 480,000

Feliciano 460,000

Requirement B - Profit of P500,000

Bautista 100,000

Pineda 120,000

Feliciano 280,000

Requirement C - Loss of P100,000

Bautista (200,000)

Pineda (80,000)

Feliciano 180,000

Problem #15
Requirement 1

Carpio 271,667

Cayanan 325,667

Ferraris 302,667

Requirement 2

Income summary 900,000

Carpio, Drawing 271,667

Cayanan, Drawing 325,667

Ferraris, Drawing 302,667

Carpio, Drawing (P271,667 - 160,000) 111,667

Carpio, Capital 111,667

Cayanan, Drawing (P325,667 - 193,000) 132,667

Cayanan, Capital 132,667

Ferraris, Drawing (P302,667 - 170,000) 132,667

Ferraris, Capital 132,667

Requirement 3 - Profit of P430,000

Carpio 115,000

Cayanan 169,000

Ferraris 146,000

Problem #16
Average capital:

Rialubin 90,000

Rabena 70,000

dela Cruz 80,000

Requirement 1 - Profit of P48,000

Rialubin 18,000

Rabena 14,000

dela Cruz 16,000

Requirement 2 - Profit of P50,000

Rialubin 19,400

Rabena 14,400

dela Cruz 16,200

Requirement 3 - Loss is P35,000

Rialubin (12,000)

Rabena (12,000)

dela Cruz (11,000)

Problem #17
Requirement 1 - Beginning capital balances ratio

Sunglao 800,000

Java 1,200,000

Requirement 2 - Average capital balances

Computation of average capital:
Sunglao, Capital
Month, Capital balance, months outstanding)

Jan 1 (P200,000 x 1/12) 16,667

Feb 1 (P280,000 x 4/12) 93,333

Jun 1 (P240,000 x 5/12) 100,000

Nov 1 (P310,000 x 1/12) 25,833

Dec 1 (P290,000 x 1/12) 24,167

260,000

Java, Capital
Month, Capital Balance, Months outstanding)

Jan 1 (P300,000 x 3/12) 75,000

Apr 1 (P250,000 x 3/12) 62,500

Jul 1 (P200,000 x 3/12) 50,000

Oct 1 (P150,000 x 2/12) 25,000

Dec 1 (P330,000 x 1/12) 27,500

240,000
Sunglao 1,040,000

Java 960,000

Requirement 3 - Based on Ending capital balances

Sunglao 1,500,000

Java 500,000

Requirement 4
Sanglao Java Total

Bonus (P2000,000 - 1,500,000) x 20% 100,000 - 100,000

Balance: (P2,000,000 - 100,000)

P1,900,000/2 950,000 950,000 1,900,000

1,050,000 950,000 2,000,000

Requirement 5

Sanglao 1,051,000

Java 949,000

Problem #18
Requirement 1 - Based on initial capital contributions
Liboro
135,000
Fernandez
225,000
Palatino
90,000

Requirement 2
Liboro
211,000
Fernandez
177,500
Palatino
61,500
Requirement 3
Liboro
205,000
Fernandez
170,000
Palatino
75,000

Requirement 4
Liboro Fernandez Palatino Total
30,00 45,00 65,00 140,00
Salaries 0 0 0 0
Interest on initial capital contributions:

P300,000 x 5% 15,000

P500,000 x 5% 25,000

P200,000 x 5% 10,000 50,000

Bonus = 8% x (P450,000 - B) 33,333 33,333

Balance: P450,000 - 140,000 - 50,000 - 33,333.33

P226,667 / 3 75,556 75,556 75,556 226,667

153,889 145,556 150,556 450,000

Problem #19

Gadia 300,000

Penaflor 225,000

Awayan 375,000

Problem #20
Requirement 1

Alvarez 160,000

Pitular 95,000

del Rosario 95,000

Requirement 2
Alvarez 175,000

Pitular 87,500

del Rosario 87,500

Chapter
1

Problem #4

1,490,00
Total assets 0

Total liabilities 30000

Espanol, Capital 730000
Quino, Capital 730000

Problem #5

Total assets 5621500

Total liabilities 905500

Mulles, Capital 2393000
Lucena, Capital 2393000

Prolem #7
Total Assets 3002000

Total liabilities 1113000

Apalisoc, Capital 926000
Tuddao, Capital 963000

Problem #8
Total assets 1778400
Total liabilities 541600
Antonio, Capital 805600
Gaya, Capital 431200