ADVANCED ACCOUNTING GUERRERO PERALTA VOLUME 1 SOLUTION MANUAL LATEST UPDATE. COMPLETE GUIDE WITH 100% CORRECT ANSWERS

ADVANCED ACCOUNTING GUERRERO
PERALTA VOLUME 1 SOLUTION MANUAL
LATEST UPDATE.




COMPLETE GUIDE WITH 100% CORRECT ANSWERS

, CHAPTER 1

MULTIPLE CHOICE ANSWERS

1-1: AND SOLUTIONS

A
1-2: B JOSE'S CAPITAL
(40,000 + 80,000)  2/3 BE
SHOULD CREDITED
= 180,000 X 1/3 FOR THE MARKET
= 60,000.
VALUE OF THE COMPUTER CONTRIBUTED BY HIM.
1-3: A
Cash P100,000
Land 300,000
Mortgage Payable ( 50,000)
Net Assets (Julio, Capital) P350,000

1-4: B
Total Capital (P300,000/60%) P500,000
Perla's Interest 40%
Perla's Capital P200,000
Less:Non-Cash Asset Contributed At Market Value
Land P 70,000
Building 90,000
Mortgage Payable ( 40,000) _120,000
Cash Contribution P 80,000


1-5: D - ZERO, BECAUSE UNDER THE BONUS METHOD, A TRANSFER OF CAPITAL IS ONLY
REQUIRED.

1-6: B
REYES SANTOS
CASH P200,000 P300,000
INVENTORY – 150,000
BUILDING – 400,000
EQUIPMENT 150,000
MORTGAGE ( 100,000)
PAYABLE
NET ASSET (CAPITAL) P350,000 P750,000

1-7: C
AA BB CC
CASH P 50,000
PROPERTY AT MARKET P 80,000
VALUE
MORTGAGE PAYABLE ( 35,000)
EQUIPMENT AT P55,000
MARKET VALUE
CAPITAL P 50,000 P 45,000 P55,000

,2 Chapter 1


1-8: A
PP RR SS
CASH P 50,000 P 80,000 P 25,000
COMPUTER AT MARKET VALUE 25,000 60,000
CAPITAL P 75,000 P 80,000 P 85,000
1-9: C
MARIA NORA
CASH P 30,000
MERCHANDISE INVENTORY P 90,000
COMPUTER EQUIPMENT 160,000
LIABILITY ( 60,000)
FURNITURE AND FIXTURES 200,000
TOTAL CONTRIBUTION P230,000 P190,000

TOTAL AGREED CAPITAL (P230,000/40%) P575,000
NORA'S INTEREST 60%
NORA'S AGREED CAPITAL P345,000
LESS: INVESTMENT 190,000
CASH TO BE INVESTED P155,000

1-10: D
ROY SAM TIM
CASH P140,000 – –
OFFICE – P220,000 –
EQUIPMENT NOTE _( 60,000)
PAYABLE
NET ASSET INVESTED P140,000 P160,000 P –

AGREED CAPITALS, EQUALLY P100,000
(P300,000/3) =
1-11: A
LARA MITRA
CASH P130,000 P200,000
COMPU – 50,000
TER _( 10,000)
EQUIPMENT NOTE
PAYABLE
NET ASSET INVESTED P130,000 P240,000

GOODWILL (P240,000 - P130,000) = P110,000

1-12: A
PEREZ REYES
CASH P 50,000 P 70,000
OFFICE 30,000 –
EQUIPMENT – 110,000
MERCHANDIS
E
FURNITURE 100,000
NOTES PAYABLE ( 50,000)
NET ASSET INVESTED P 80,000 P230,000
Downloaded by Ma. Tiffany Roble ()

, Partnership – Basic Considerations and Formation 3

1-12: CONTINUED
BONUS METHOD:
TOTAL CAPITAL (NET ASSET INVESTED) P310,000

GOODWILL METHOD:
NET ASSETS INVESTED P310,000
ADD: GOODWILL (P230,000-P80,000) _150,000
NET CAPITAL P460,000

1-13 :
REQUIRED CAPITAL OF EACH PARTNER (P300,000/2)
B P150,000
CONTRIBUTED CAPITAL OF RUIZ:
TOTAL ASSETS P105,000
LESS LIABILITIES 15,000 90,000
CASH TO BE CONTRIBUTED BY RUIZ P 60,000

1-14 :
TOTAL ASSETS:
D CASH P 70,000
MACHINERY 75,000
BUILDING _225,000 P370,000
LESS: LIABILITIES (MORTGAGE PAYABLE)
90,000
NET ASSETS (EQUAL TO FERRER'S CAPITAL ACCOUNT)
P280,000
DIVIDE BY FERRER'S P & L SHARE PERCENTAGE 70%
TOTAL PARTNERSHIP CAPITAL P400,000

REQUIRED CAPITAL OF CRUZ (P400,000 X 30%) P120,000
LESS ASSETS ALREADY CONTRIBUTED:
CASH P 30,000
MACHINERY AND EQUIPMENT 25,000
FURNITURE AND FIXTURES 10,000 65,000
CASH TO BE INVESTED BY CRUZ P 55,000

1-15 :
ADJUSTED ASSETS OF C BORJA
D CASH P 2,500
ACCOUNTS RECEIVABLE (P10,000-P500)
9,500
MERCHANDISE INVENTORY (P15,000-
P3,000) 12,000
FIXTURES 20,000 P 44,000
ASSET CONTRIBUTED BY D. ARCE:
CASH P 20,000
MERCHANDISE 10,000 30,000
TOTAL ASSETS OF THE PARTNERSHIP P 74,000