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ANSWER KEY - QUIZ - CHAPTER 2 - MULTIPLE CHOICE - THEORIES & PROBLEMS

1 D ü 1 point
2 D ü 1 point
3 B ü 1 point
4 B ü 1 point
5 C ü 1 point
6 A ü 1 point
7 D ü 1 point
8 D ü 1 point
9 C ü 1 point
10 D ü 1 point
11 D ü 1 point
Note: In the absence of value agreed upon by the partners, any property contributed to the
partnership shall be recorded at fair market value which is P18,000 in this case
12 C ü 1 point
Computation:
Sarabia Abad
2% allowance for doubtful accts (370.00) (270.00)
Furniture & Fixture 1,000.00
Office equipment (250.00)
Unrecorded rent expense (1,000.00)
Unrecorded salary expense (800.00)
Inventories (500.00) 1,500.00
Net Credit (Debit) Adjustments (870.00) 180.00
13 B ü 1 point
Computation:
Sarabia Abad Total
Accounts Payable 45,750.00 18,000.00 63,750.00
Rent Payable 1,000.00 1,000.00
Salary Payable 800.00 800.00
Total Liabilities 46,750.00 18,800.00 65,550.00
14 C ü 1 point
Computation:
Sarabia Abad Total
Cash 9,000.00 3,750.00 12,750.00
Accounts Receivable 18,500.00 13,500.00 32,000.00
Allowance for Unc. Accts (370.00) (270.00) (640.00)
Inventories 29,500.00 21,000.00 50,500.00
Furniture & Fixture (net) 31,000.00 9,000.00 40,000.00
Office Equipment (net) 11,500.00 2,500.00 14,000.00
Prepaid Expenses 6,375.00 3,000.00 9,375.00
Total Assets 105,505.00 52,480.00 157,985.00
15 B ü 1 point
 Note: In the absence of value agreed upon by the partners, any property contributed to the
partnership shall be recorded at fair market value which is P500,000 in this case.
16 B ü 1 point
Computation:
Isada U- Reyes
Assets 75,000.00 113,000.00
Liabilities (5,000.00) (34,500.00)
Unadjusted capital 70,000.00 78,500.00
Adjustments:
Increase in Inventory 4,000.00
Setting up of Allow. For Unc. Accts (1,000.00) (1,500.00)
Recognition of Accounts Payable (4,000.00)
Adjusted Capital 65,000.00 81,000.00
17 D ü 1 point
Computation:
Cash 70,000.00
Machinery Equipment 75,000.00
Building 225,000.00
Mortgage loan (80,000.00)
Borromeo's capital account balance 290,000.00
18 A ü 1 point
Computation:
Cash 70,000.00
Machinery Equipment 75,000.00
Building 225,000.00
Borromeo's capital account balance 370,000.00
19 B ü 1 point
Computation:
Foja Lupian Retada
Cash 50,000.00 - -
Property - 80,000.00 -
Mortgage - (35,000.00) -
Equipment - - 55,000.00
Capital balances 50,000.00 45,000.00 55,000.00

20 C ü 1 point
Computation:
Cash 9,000.00
Accounts Receivable 189,000.00
Allowance for uncollectible accounts (12,000.00)
Merchandise Inventory 460,000.00
Store Equipment 140,000.00
Antonia's adjusted capital balance 786,000.00
Multiplied by 2
Cash contribution of Andrea 1,572,000.00
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