SOLUTIONS MANUAL

for use with

volume 1

advanced
ACCOUNTING
PRINCIPLES AND PROCEDURAL APPLICATONS

2011 EDITION

P.P. GUERRERO
J.F. PERALTA
To the Instructor

This Solutions Manual contains suggested solutions to all the Multiple

Choice and Problems for the 2011 edition of Advanced Accounting
Principles and Procedural Applications. All solutions have been
prepared by the authors to ensure accuracy and consistency with the
discussion and illustration in the textbook.
Multiple Choices
The multiple choices are designed to cover a variety of conceptual
situations included in each chapter. Solving these should reinforce the
students knowledge of accounting and also test their understanding of
the points covered. You may choose to assign selected multiple choices
to supplement the problems assigned in each chapter. Most of the
multiple choices require a limited amount of computations and are well
suited for inclusion in quizzes or examinations.
Problems
Problems have been provided at the end of each chapter more than
you can reasonably use in a single offering of the course. This
abundance of problems allows you to vary problem assignments in
different sections of the course, or from semester to semester, and to
choose these problems that best fit the scope, level and emphasis of
your course.
Final Note
The Solutions Manual intended to accompany the 2011 edition of
Advanced Accounting Principles and Procedural Appliations has been
prepared carefully and reviewed thoroughly to ensure that the
instructors who adopt this textbook are provided with all possible
assistance in making their course effective. In the final analysis,
however, any given course is shaped primarily by the person who
teaches it, and the success of our efforts will be proved through
extensive experience in the classroom. We will appreciate any
comments for suggestions from you no matter how minor the point
involved. Please address correspondence to Pedro P. Guerrero, CPAR
Building, 837 F. Cayco St., Sampaloc, Metro Manila or you may email
me at ppg@pldtdsl.net.

P. P. Guerrero

J. F. Peralta

Contents

CHAPTER 1:

Partnership
Formation

Basic

Considerations

and

CHAPTER 2:

Partnership Operations

CHAPTER 3:
Ownership

Partnership Dissolution Changes in

CHAPTER 4:

Partnership Liquidation

CHAPTER 5:

Partnership Liquidation by Installment

CHAPTER 6:

Joint Venture (PAS 31)

CHAPTER 7:
Liquidation

Corporation

CHAPTER 8:
Restructuring

Reorganization

CHAPTER 9:

Installment Sales

in

Financial
and

Difficulty

Troubled

Debt

CHAPTER 10:

Long-Term Construction Contracts (PAS 11)

CHAPTER 11:

Franchise Accounting