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Suggested Answers: Exercises
Suggested Answers: Exercises
SUGGESTED ANSWERS
EXERCISES
Exercise 1 –1
Req. 2.
Campos and Tomas Co.
Balance Sheet
July 1, 2001
Exercise 1 - 2
b. G. Fortes
Jan. 1 - Mar. 31 P33,000 x 3 P 99,000
Apr. 1 - Aug. 31 48,000 x 5 240,000
Sept 1. - Dec. 31 44,000 x 4 176,000
P515,000/12 42,917
2. Division of Profit
Exercise 1 - 3
S. Abad:
Jan. 1 - May 31 P165,000 x 5 P825,000
June 1 - Aug. 31 215,000 x 3 645,000
Sept.1 - Dec. 31 195,000 x 4 780,000
P2,250,000/12 P187,500
Exercise 1 – 4
2.
Sanchez and Gomez
Statement of Partners’ Capital
For the Year Ended December 31, 2001
Exercise 1 – 5
Exercise 1 - 6
Exercise 1 –7
1.
Benito Cabral Duenas Total
Capital balances before payment
of cash P120,000 P100,000 P100,000 P320,000
Required capital balances based on
on profit and loss ratio 128,000 112,000 80,000 320,000
Cash received (paid) (P 8,000) (P 12,000) P 20,000 -
2.
Benito Cabral Duenas Total
Capital balances before payment
of cash P120,000 P100,000 P100,000 P320,000
Required capital balances based on
lowest possible cash investment* 160,000 140,000 100,000 400,000
Required additional cash investment P 40,000 P 40,000 - P 80,000
* P120,000/40% = P300,000; P100,000/35% = P285,174; P100,000/25% = P400,000
Exercise 1 – 8
2. Equipment 20,000
Enriquez, Capital 3,600
Flores, Capital 2,400
Accumulated Depreciation 2,000
Inventory 24,000
PROBLEMS
Chapter 1 – Partnership Formation and Operations
Suggested Answers page 6
Problem 1 – 1
1. Cash 90,000
Inventories 150,000
Equipment 300,000
Notes Payable 105,000
Serrano, Capital 435,000
Cash 60,000
Land 600,000
Mortgage Payable 195,000
Torres, Capital 465,000
Purchases 90,000
Accounts Payable 90,000
Cash 315,000
Accounts Receivable 315,000
Purchases 90,000
Selling and General Expenses 87,000
Interest Expense 19,500
Income Summary 58,500
Sales P345,000
Cost of goods sold:
Inventories, beginning P150,000
Purchases 90,000
Cost of goods available for sale P240,000
Less Inventories, end 60,000 180,000
Gross profit P165,000
Selling and general expenses 87,000
Operating income P 78,000
Interest expense 19,500
Net income P 58,500
Assets
Current assets:
Cash P187,800
Accounts receivable (P345,000 – P315,000) 30,000
Inventories 60,000 P
277,800
Property, plant and equipment:
Land P600,000
Equipment P300,000
Less Accumulated depreciation 15,000 285,000 885,000
Total assets P1,162,80
0
Liabilities
Current liabilities:
Accounts payable (P90,000 – P72,000) P18,000
Accrued expenses 9,000 P
27,000
Long-term liabilities:
Notes payable (P105,000 – P22,500) P 82,500
Mortgage payable (P195,000 – P30,000) 165,000 247,500
Total liabilities P
274,500
Partners’ Capital
Serrano, capital P446,400
Torres, capital 441,900
Total capital 888,300
Total liabilities and capital P1,162,80
0
Problem 1 - 2
Problem 1 - 3
Problem 1 - 4
Supporting computations:
MULTIPLE CHOICE
A. 1. D
B. 1. C
C. 1. C
D 1. C Roxas = P59,625 - P555 = P59,070
Solomon = P33,500 - P405 - P900 = P32,195
H. 1. C
2. B
J. 1. D
M 1. B
Romero Quinto Total
Salaries to partners P12,000 P 6,000 P18,000
Bonus - 10% (P33,000 - B) 3,000 3,000
Balance - equally 6,000 6,000 12,000
Net income P18,000 P15,000 P33,000