CHAPTER 2 Nature and Formation of a Partnership
E 2-1 a. Cash Alonzo, Capital
400,000
b.
Accounts Receivable Allowance for ncollectible Accounts Alonzo, Capital
500,000
!n !nventories Alonzo, Capital "#00,000 $ %0& ' "240,000
240,000
E)uip*ent Alonzo, Capital "+00,000 $ 10 ' "540,000
540,000
c.
(.
E 2-2 1. Cash Accounts Receivable erchan(ise !nventor/ E)uip*ent Allowance for ncollectible Accounts Accounts "a/able otes "a/able A)uino, Capital 2.
Cash Asuncion, Capital
E 2-# 1. a.
b.
c.
(.
A*ores, Capital Allowance for ncollectible Accounts erchan(ise !nventor/ A*ores, Capital "repai( E$penses Accounts "a/able A*ores, Capital
400,000
50,000 450,000
240,000
540,000
450,000 1%0,000 20,000 125,000 10,000 105,000 +0,000 %20,000 520,000 520,000
2#,000 2#,000 1,000 1,000 2,000 #2,000 40,000
Cash +02,500 An(ra(a, Capital +02,500 "1,12,000 3 "2#,000 "1,000 "40,000 ' "1,%05,000 ÷ 2# $ 1# ' "+02,500
PC – Chapter 2
2.
a.
b.
page 2
Cash Accounts Receivable erchan(ise !nventor/ "repai( E$penses Allowance for ncollectible Accounts Accounts "a/able A*ores, Capital Cash An(ra(a, Capital
20%,000 40,000 1,1,000 2,000 2#,000 52%,000 1,%05,000 +02,500 +02,500
Amores and Andrada Company Statement of Financial Position January 1 2!!"
Assets Cash Accounts Receivable 6ess Allowance for ncollectible Accounts erchan(ise !nventor/ "repai( E$penses 7otal Assets
"1,110,500 "40,000 2#,000
4#,000 1,1,000 2,000 "#,2#5,500
6iabilities an( Capital Accounts "a/able A*ores, Capital An(ra(a, Capital 7otal 6iabilities an( Capital E 2-4 1. Cash 6an( 8uil(in9 A9uirre, Capital Aranas, Capital 2.
Cash 6an( 8uil(in9 A9uirre, Capital Aranas, Capital
" 2-1 1. a. b.
erchan(ise, !nventor/ Acosta, Capital Acosta, Capital Allowance for ncollectible Accounts
"52%,000 "1,%05,000 +02,500
2,0,500 "#,2#5,500
1,000,000 %00,000 50,000 1,000,000 1,550,000 1,000,000 %00,000 50,000 1,25,000 1,25,000
150,000 150,000 5,000 5,000
PC – Chapter 2
c.
(.
e.
f. 9.
page 3
!nterest Receivable Acosta, Capital "#5,000 $ & $ 212 ' "#,50
#,50 #,50
Acosta, Capital !nterest "a/able "50,000 $ 10& $ #12 ' "1%,50
1%,50 1%,50
Accu*ulate( :epreciation Acosta, Capital ;urniture an( ;i$tures
450,000 150,000 00,000
12,500
Cash A9uas, Capital
1,#11,250
12,500 1,#11,250
"2,00,000 150,000 3 5,000 #,50 3 1%,50 -150,000 12,500 ' 2,22,5002 ' 1,#11,250
Acosta and A#uas Statement of Financial Position $ecem%er 1 2!!"
Assets Cash otes Receivable Accounts Receivable 6ess Allowance ;or ncollectible Accounts !nterest Receivable erchan(ise !nventor/
" 1,+11,250 #5,000 "
2,250,000 225,000
2,025,000 #,50 50,000 12,500 1,200,000 " ,2,500
6iabilities an( Capital otes "a/able Accounts "a/able !nterest "a/able 7otal 6iabilities
"
Acosta, Capital A9uas, Capital 7otal Capital 7otal 6iabilities an( Capital
" 2,22,500 1,#11,250
" 2-2 1. a.
b.
Abril, Capital Allowance for :oubtful Accounts Abril, Capital
50,000 1,55,000 1%,50 " 2,#4#,50
#,+##,50 " ,2,500
+,000 +,000 21,000
PC – Chapter 2
c.
2.
a.
b.
c.
(. e.
page 4
Accrue( E$penses Accu*ulate( :epreciation Accounts "a/able Accrue( E$penses Allowance for :oubtful Accounts Abril, Capital Cash Accounts Receivable erchan(ise !nventor/ E)uip*ent erchan(ise !nventor/ Arias, Capital
21,000 112,500 #45,000 21,000 +,000 %00,000 1%,500 450,000 400,000 250,000 50,000 50,000
Arias, Capital Allowance for :oubtful Accounts
,500 ,500
>oo(will #5,500 Arias, Capital "%00,000 ÷ 40& $ 0& - %00,000 50,000 3 ,500 ' #5,500 Accu*ulate( :epreciation E)uip*ent
#5,500
#,500 #,500
Cash Accounts Receivable erchan(ise !nventor/ E)uip*ent Allowance for :oubtful Accounts Accounts "a/able Accrue( E$penses Abril, Capital A%ril and Arias Statement of Financial Position &cto%er 1 2!!" Assets
Cash Accounts Receivable 6ess Allowance ;or :oubtful Accounts erchan(ise !nventor/ E)uip*ent >oo(will 7otal Assets
1%,500 450,000 400,000 1#,500 +,000 #45,000 21,000 %00,000
" #00,000 " %25,000 1,500
%0%,500 50,000 400,000 #5,500 "2,1,000
6iabilities an( Capital Accounts "a/able Accrue( E$penses 7otal 6iabilities
" 5+5,000 21,000
Abril, Capital Arias, Capital 7otal Capital
" %00,000 1,200,000
" 1,000
2,000,000
PC – Chapter 2
7otal 6iabilities an( Capital " 2-# 1. erchan(ise !nventor/ Accu*ulate( :epreciation Allowance for :oubtful Accounts E)uip*ent Albano, Capital 2.
Cash Accounts Receivable erchan(ise !nventor/ E)uip*ent ;urniture an( ;i$tures Allowance for :oubtful Accounts Accounts "a/able Aba(a, Capital
" 2-4 1. Accounts Receivable erchan(ise !nventories ;urniture an( ;i$tures >oo(will Allowance for :oubtful Accounts Accounts "a/able Abante, Capital 2.
#.
Cash Arevalo, Capital 6an( Al*onte, Capital
" 2-5 1. a.
b.
page 5
"2,1,000 #0,000 +,000 10,000 20,000 +,000 50,000 40,000 1,0%0,000 120,000 +0,000 40,000 540,000 1,220,000
%40,000 1,000,000 00,000 250,000 240,000 450,000 2,000,000 1,000,000 1,000,000 %00,000 %00,000
Cash erchan(ise !nventor/ Abueva, Capital
51%,000 1,152,000
Accounts Receivable erchan(ise !nventor/ oo(will Allowance for :oubtful Accounts Accounts "a/able Alano, Capital
1,+2,000 25,000 10,000 1+%,000
1,0,000
10,000 5,000 1,0,000
PC – Chapter 2
page 6
A%ue'a and Alano Partnership Statement of Financial Position June 1 2!!"
Assets Cash Accounts Receivable 6ess Allowance ;or :oubtful Accounts erchan(ise !nventor/ oo(will 7otal Assets
" " 1,+2,000 10,000
51%,000
1,#2,000 1,40%,000 10,000 1+%,000 " #,+1,000
6iabilities an( Capital Accounts "a/able Abueva, Capital Alano, Capital 7otal 6iabilities an( Capital " 2- 1. 2.
"1,0%0,000 "1,100,000
" 5,000 " 1,0,000 1,0,000
#,#40,000 " #,+1,000
"%0,000 "440,000 "200,000 "00,000 3 "240,000 ' "1,0%0,000 "1,0%0,000 "1,120,000 2 ' "1,100,000
ultiple Choice 1. 8 2. A #. A 4. : 5. : . A "%0,000 "#00,000 "+00,000 3 "#20,000 ' "+0,000 . 8 Aster ' "4%+,000 3 ",500 ' "4%1,500 A*ie ' "2#,000 "+,000 3 "5,400 ' "2,00 %. : "+,000 "1%+,000 3 "10,000 "40,000 "140,000 ' "%%,000 $ 2 ' "1,5,000 +. A "00,000 $ 12 3 "2#0,000 3 "#0,000 ' "100,000 10. : 7otal partnership capital 7otal partnership liabilities ' 7otal partnership assets "00,000 "#0,000 "20,000 ' "50,000 11. C "00,0002 ' "#00,000- 150,000-20,000' "10,000. 12. 8 "+0,000 "#0,000 "1#0,000 3 "100,000 ' "150,000 1#. C "240,000 "150,000 " 100,000 ' "4+0,000 14. 8 "240,000 "150,000 $ 0& ' "2#4,000 "240,000 "150,000 $ 40& ' "15,000- "150,000 '",000 15. 8 1. C "2%0,000 "440,000 "%00,000 3 "#20,000 ' "1,200,000 1. C "20,000 "1,200,0002 ' "+0,000 1%. C "+0,000 3 "20,000 ' "240,000 1+. 8 20. : "20,000 "1,200,000 ' "1,+20,000 $ 5& ' "1,440,000
PC – Chapter 2
page 7
7 1. 2. #. 4.
; ; ; 7
7 1. 2. #. 4. 5. . . %.
6i*ite( partnership !n(ustr/, s?ill, talent or service Capitalist in(ustrial partner utual a9enc/ :e facto partnership e*oran(u* entr/ ontra(in9 partnership "artnership
7 % 1. A 2. 8 #. : 4. 8
5. . . %.
5. . . %.
7 7 ; 7
C : : 8
+. 10. 11. 12.
+. : 10. : 11. A 12. C
7 7 ; 7
1#. 14. 15. 1.
+. 10. 11. 12. 1#. 14. 15. 1. 1. 1%. 1+. 20.
1#. 14. 15. 1.
A 8 C C
7 7 ; ;
1. 1%. 1+. 20.
; 7 7 7
A9ree( value :or*ant partner Articles of Co-"artnership =ecret partner =ecurities an( E$chan9e Co**ission 6i*ite( or 67:. 6i*ite( partner 6oan "a/able Capital share 8onus Arrive at A9ree( value or ;@ >eneral professional partnership
1. 1%. 1+. 20.
A C C :
7 + "roble* A 1.
2.
#.
Cash 6an( 8uil(in9 ;urniture an( ;i$tures Accounts "a/able Alvis, Capital Ancheta, Capital
%00,000 #5,000 1,250,000 25,000
Cash 6an( 8uil(in9 ;urniture an( ;i$tures Accounts "a/able Alvis, Capital Ancheta, Capital
%00,000 #5,000 1,250,000 25,000
Cash
250,000 1,#5,000 1,425,000
250,000 1,400,000 1,400,000 %00,000
PC – Chapter 2
6an( 8uil(in9 ;urniture an( ;i$tures >oo(will Accounts "a/able Alvis, Capital Ancheta, Capital
page 8
#5,000 1,250,000 25,000 50,000 250,000 1,425,000 1,425,000
"roble* 8 1.
a.
Ablan, Capital Accounts Receivable
50,000
Ablan, Capital !nventories
2,500
Ablan, Capital
10,000
A*ias, Capital Accounts Receivable
5,000
b.
A*ias, Capital !nventories
##,500
c.
A*ias, Capital
1%,000
b.
c.
a.
2.
a.
b.
#.
a.
50,000
2,500
10,000
5,000
##,500
1%,000
Accounts "a/able otes "a/able Ablan, Capital "#,20+,%%0 3 "50,000 3 "2,500 3 "10,000 Cash Accounts Receivable !nventories 6an( ;urniture an( ;i$tures
%+4,00 1,000,000 #,122,#%0
Accounts "a/able otes "a/able A*ias, Capital "#,41,0 3 "5,000 3 "##,500 3 "1%,000 Cash Accounts Receivable !nventories 8uil(in9s ;urniture an( ;i$tures
1,21%,250 1,25,000 #,515,20
Cash Accounts Receivable !nventories
55,000 1,122,%0 52,5
55,000 1,122,%0 52,5 #,015,000 251,25
111,0 2,4,450 1,2,010 2,141,##5 1#,+45
PC – Chapter 2
b.
page 9
6an( ;urniture an( ;i$tures Accounts "a/able otes "a/able Ablan, Capital
#,015,000 251,25
Cash Accounts Receivable !nventories 8uil(in9s ;urniture an( ;i$tures Accounts "a/able otes "a/able A*ias, Capital
111,0 2,4,450 1,2,010 2,141,##5 1#,+45
%+4,00 1,000,000 #,122,#%0
1,21%,250 1,25,000 #,515,20
A%lan and Amias Partnership Statement of Financial Position (ay 1 2!!"
Assets Current Assets Cash Accounts Receivable !nventories oncurrent Assets 6an( 8uil(in9s ;urniture an( ;i$tures 7otal Assets
"
1,0 #,%%,1#0 1,%#+,%5
" #,015,000 2,141,##5 425,0
" 5,%+#,5%5
5,5%2,005 " 11,45,5+0
6iabilities an( Capital otes "a/able Accounts "a/able 7otal 6iabilities
" 2,25,000 2,112,+50
Ablan, Capital A*ias, Capital 7otal Capital 7otal 6iabilities an( Capital
" #,122,#%0 #,515,20
" 4,%#,+50
,#,40 " 11,45,5+0
