Parcor

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
Total Liabilities and Capital 1,000,000
Requirement 3
Income summary 450,000
San Mateo, Drawing 300,000
Rodriguez, Drawing 150,000
San Mateo, Drawing 52,000
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:
Dondoyano 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
Demafiles 115,000
Lopez 150,000
Requirement B - Profit is P270,000
Parale 80,000
Demafiles 70,000
Lopez 120,000
Requirement C - Loss is P315,000
Parale (180,000)
Demafiles (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

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
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
Rialubin 18,000
Rabena 14,000
dela Cruz 16,000
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
Palatino 177,500
61,500
Requirement 3
Liboro
205,000
Fernandez
170,000
Palatino
75,000
Requirement 4
Liboro Fernandez Palatino Total
Salaries 30,000 45,000 65,000 140,000
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
Total assets 1,490,000
Total liabilities 30000

Espanol, Capital 730000
Quino, Capital 730000
Problem #5
Total assets 5621500

Mulles, Capital 2393000
Lucena, Capital 2393000
Prolem #7
Total Assets 3002000

Apalisoc, Capital 926000
Tuddao, Capital 963000
Problem #8
Total assets 1778400

Antonio, Capital 805600
Gaya, Capital 431200

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Partnership and Corporation Accounting

Chapter 2 - Partnership Operations and Financial Reporting

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.

Rodriguez, Capital 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

LIABILITIES AND CAPITAL

Accounts payable 191,000

San Mateo, Capital 404,500

Rodriguez, Capital 404,500

Total Liabilities and Capital 1,000,000

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

Sales, net of sales returns and allowances 228,000

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

Gross Profit 107,500

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

Net income 37,900

Dondoyano Dellosa Total

Salary 30,000 - 30,000

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

Initial investment 125,000

Share in net income 35,234

Initial investment 75,000

Share in net income 2,666

Computation of average capital

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

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

Total average capital of partnership 500,000

Distribution of profit of P800,000

Requirement C - Loss is P315,000

Requirement D - Profit is P350,000

Requirement B - Profit is P700,000

Requirement C - Loss of P80,000

Requirement B - Profit is P360,000

Requirement C - Loss is P360,000

Requirement D - Profit of P2,700,000

Requirement B - Profit of P500,000

Requirement C - Loss of P100,000

Income summary 900,000

Carpio, Drawing 271,667

Cayanan, Drawing 325,667

Ferraris, Drawing 302,667

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