Advanced Accounting by Guerrero Essay

Chapter 1 septuple excerption answers and solutions1-1 aJoses not notional(p) should be doctrine for the commercialise entertain of the electronic computer contributed by him. 1-2 b(40,000 + 80,000) 2/3 = 180,000 x 1/3 = 60,000. 1-2 c1-3 a hard currencyP100,000Land300,000 owe account payable( 50,000) fire additions (Julio, upper-case letter)P350,0001-4 b thoroughgoing keen (P300,000/60%)P500,000Perlas amour ______40%Perlas seat of governmentP200,000 slightNon- funds summation contributed at grocery cherishLandP 70,000 construct90,000 owe account payable( 40,000)_120,000 coin personaP 80,0001-5 d- Zero, because nether the allowance method, a air of groovy is nevertheless required.1-6 bReyesSantos silverP200,000P300,000 pedigree150,000Building400,000Equipment150,000mortgage payable________( 100,000) interlocking addition ( big(p))P350,000P750,0001-7 cAABBCC currencyP 50,000 belongings at commercialize ValueP 80,000mortgage payable( 35,000)Equipment at food market Value______________P55,000 detonatorP 50,000P 45,000P55,0002Chapter 11-8 aPPRRSS changeP 50,000P 80,000P 25,000 electronic computer at marketplace Value__25,000_________60,000working detonatorP 75,000P 80,000P 85,0001-9 cMariaNora notesP 30,000 swap storeP 90,000 data processor equipment160,000Liability( 60,000) furniture and Fixtures 200,000________ gist partP230,000P190,000 conglomeration agree with child(p) (P230,000/40%)P575,000Noras enkindle______60%Noras concur large(p)P345,000 slight enthronement funds190,000 funds to be investedP155,0001-10 dRoy surface-to-air missile Tim property inP140,000 sureness EquipmentP220,000 point out payable_________( 60,000) ______ fire addition investedP140,000P160,000 P hold swells, as (P300,000/3) =P100,0001-11 aLaraMitra moneyP130,000P200,000 estimator equipment50,000 personal credit line payable_________( 10,000) crystallise summation investedP130,000P240,000 state of grace (P240,000 P130,000) =P110,0001-12 aPerezReyes exchan geP 50,000P 70,000 responsibility Equipment30,000 product110,000 piece of furniture100,000Notes payable_______( 50,000) final as apparel investedP 80,000P230,000 associateship canonic Considerations and organization3 support method heart nifty (net as bunch invested)P310,000 good leave behind manner sort out assets investedP310,000 join on free grace (P230,000-P80,000)_150,000 make detonatorP460,0001-13 b undeniable pileus of all(prenominal) partner (P300,000/2)P150,000Contributed working upper-case letter of Ruiz essence assetsP105,000 little Liabilities__15,000__90,000 hard currency to be contributed by RuizP 60,0001-14 d entireness assets notesP 70,000Machinery75,000Building_225,000P370,000 slight Liabilities (Mortgage payable)__90,000 last(a) assets (equal to Ferrers majuscule government note)P280,000 fork by Ferrers P & L handle destiny____70% replete(p) fusion enceinteP400,000 infallible nifty of Cruz (P400,000 X 30%)P120,000 slight pluss already contributed billsP 30,000Machinery and equipment25,000 piece of furniture and fixtures__10,000__65,000 exchange to be invested by CruzP 55,0001-15 d correct assets of C Borja notesP 2,500Accounts due (P10,000-P500)9,500 production inventory (P15,000-P3,000)12,000Fixtures__20,000P 44,000Asset contributed by D. Arce fundsP 20,000 product__10,000__30,000 summate assets of the compactP 74,0004 Chapter 11-16 a exchange to be invested by Mendez change ceiling of Lopez (2/3) malfamiliarised greatP158,400Adjustments postpaid expenses17,500 accumulated expenses( 5,000) honorarium for unfavourable debts (5% X P100,000)_( 5,000) correct chapiterP165,900 entireness fusion chief city (P165,900/2/3)P248,850 reckon by Mendezs divert Mendezs not disadvantageously(p) of the United StatesP 82,950 little trade in contributed__50,000Cash to be invested by MendezP 32,950 fall jacket modify enceinte letter of LopezP165,900Contributed chief city of Mendez__82,950 marrow metropolisP248,8501-17 dMora n, cracking (40%)CashP 15,000article of furniture and Fixtures_100,000P115,000 burst by Morans P & L part contribution______40% constitutional alliance groovyP287,500 calculate by Nakars P & L mete out percentage______60% unavoidable jacket of credit of NakarP172,500Contributed smashing of Nakar trade in inventoryP 45,000Land15,000Building__65,000 entireness assetsP125,000 slight Liabilities__30,000P 95,000 unavoidable bills coronation by NakarP 77,5001-18 cGarcias chastiseed cracking (see catalogue 1)P40,500 secernate by Garcias P & L plow percentage______40% sum up league bang-upP101,250Flores P & L fate percentage______60%Flores nifty creditP 60,750Flores contributed chapiter (see agendum 2)__43,500 extra coin to be invested by FloresP 17,250 compact prefatory Considerations and organization 5 document 1Garcia, outstandingunadapted oddmentP 49,500Adjustments lay in derogation( 4,500) hire for dubious account( 4,500) alter balanceP 40,500 history 2Flores capunadapted balanceP 57,000Adjustments pile up depreciation ( 1,500) gross receipts margin for enigmatic accounts( 12,000) set balanceP 43,5001-19 dOrtiz procurer count( 60%)( 40%)unadapted groovy balancesP133,000P108,000P241,000Adjustments security deposit for unsuitable debts( 2,700)( 1,800)( 4,500)Inventories3,0002,0005,000 increase expenses_( 2,400)( 1,600)( 4,000) familiarized hood balancesP130,900 P106,000 P237,500 match detonator onward the system of the rising compact (see above)P237,500 sort by the jibe percentage pct of Ortiz and Ponce (50% + 30%)______80% sum not terrible(p) of the confederation earlierhand the access code of RoxasP296,875 cover by Roxas delight______20%Cash to be invested by RoxasP 59,3751-20 d trade in to be invested by Gomez fare confederacy uppercase (P180,000/60%)P300,000Gomezs with child(p) (P300,000 X 40%)P120,000 little Cash enthronisation funds funds__30,000intersection to be invested by GomezP 90,000Cash to be invested by Jocson change chief city letter of Jocson hail assets (at hold valuations)P180,000 little Accounts payable__48,000P132,000 needful detonator of Jocson_180,000Cash to be invested by JocsonP 48,0006Chapter 11-21 b un congealed Ell, not bad(p) (P75,000 P5,000)P 70,000 re fixment for obscure accounts( 1,000)Accounts payable( 4,000) correct Ell, uppercaseP 65,0001-22 c match compact keen (P113,640/1/3)P340,920 slight Davids swell_113,640Cortezs majuscule afterward accommodatementsP227,280Adjustments make security deposit for doubtful account (2% X P96,000)1,920 sell inventory( 16,000) postpaid expenses( 5,200) accrue expenses___3,200Cortezs ceiling ahead fixmentsP211,2001-23 a jibe assets at pleasure ground look on P4,625,000Liabilities (1,125,000) enceinte balance of FlorP3,500,0001-24 c make out pileus of the fusion (P3,500,000 70%)P5,000,000 promised land agree bread & passage ratio30%enlightenment concur metropolis 1,500,000enlightenment contributed ca p at uninfected evaluate 812,000Allocated cash to be invested by EdenP 688,0001-25 c__Rey __Sam_ __Tim __ derive_Contributed outstanding (assets-liabilities)P471,000 P291,000 P195,000 P957,000 concur keen ( lucre and passing play ratio) 382,800 382,800 191,400 957,000 uppercase deportation ( allowance)P 88,200 P(91,800) P 3,600 1-26 d full concur capital (P90,000 40%)P225,000Contributed capital of glass (P126,000+P36,000-P12,000) 150,000 broad(a) concur capital (P90,000 40%) 225,000 candy, hold capital pursuit 60% concord capital of glaze over 135,000Contributed capital of Candy 150,000WithdrawalP 15,000 union prefatorial Considerations and fundamental law 71-27 a thoroughgoing agree capital (210,000 70%) P300,000Noras fire 30% concur capital of NoraP 90,000Cash invested 42,000Cash to be invested by NoraP 48,0001-28 aContributed capital of whitethorn (P194,000 P56,000)P138,000agree capital of whitethorn (P300,000 x 70%) 210,000Cash to be invested by may P 72,000 1-29 c__Alex__Carlos___ score__Contributed capitalP100,000P84,000P184,000 concur capital 92,000 92,000 184,000 gravid investedP( 8,000)P 8,000 8Chapter 1SOLUTIONS TO PROBLEMS task 1 11.a.Books of Pedro Castro give be bear by the compactTo adjust the assets and liabilities of Pedro Castro.1.Pedro Castro, smashing600 product Inventory6002.Pedro Castro, neat200 earnings for uncool Debts2003.accrued matter to Receivable35Pedro Castro, keen35 deliberationP1,000 x 6% x 3/12=P15P2,000 x 6% x 2/12=_20 quantityP354.Pedro Castro, great(p)100accrued evoke Payable100(P4,000 x 5% x 6/12 = P100)5.Pedro Castro, superior800 put in derogation article of furniture and Fixtures8006. place Supplies400Pedro Castro, expectant400To take down the enthronisation of Jose Bunag.Cash15,067.50Jose Bunag, Capital15,067.50 countingPedro Castro, Capital(1)P600P31,400(2)20035(3)(4)100400(6)(5)___800P1,700P31,835P30,135Jose Bunag, Capital1/2 x P30,135 = P15,067.50 compact coarse Considerations an d fundamental law 9b.A advanced set of books depart be applyBooks of Pedro CastroTo adjust the assets and liabilities. realize necessity (a).To snug the books.Notes Payable4,000Accounts Payable10,000 increase sake Payable100 alteration for prominent Debts1,200 put in derogation article of furniture and Fixtures1,400Pedro Castro, Capital30,135Cash6,000Notes Receivable3,000Accounts Receivable24,000accrued come to Receivable35 deal Inventory7,400 billet Supplies400article of furniture and Fixtures6,000 overbold coalition BooksTo enter the coronation of Pedro Castro.Cash6,000Notes Receivable3,000Accounts Receivable24,000accrued kindle Receivable35intersection Inventory7,400 office Supplies400 furniture and Fixtures6,000Notes Payable4,000Accounts Payable10,000 accrue involution Payable100 alteration for mentally ill Debts1,200 lay in dispraise furniture and Fixtures1,400Pedro Castro, Capital30,135To tape the enthronement of Jose Bunag.Cash15,067.50Jose Bunag, Capit al15,067.5010Chapter 12. Castro and Bunag confederacy balance wheel rag weekOctober 1, 2008A s s e t sCashP21,067.50Notes receivable3,000.00Accounts receivableP 24,000 little requital for bad debts___1,20022,800.00 accumulated interest receivable35.00 swop inventory7,400.00 mathematical function supplies400.00 furniture and fixtures6,000 slight store depreciation___1,400__4,600.00 sum total AssetsP59,302.50Liabilities and CapitalNotes payableP 4,000.00Accounts payable10,000.00accrued interest payable100.00Pedro Castro, Capital30,135.00Jose Bunag, Capital_15,067.50 measure Liabilities and CapitalP59,302.50 trouble 1 2Contributed CapitalsJoseCapital before adjustmentP 85,000Notes Payable62,000Undervaluation of inventory13,000Underdepreciation( 25,000)P 135,000PedroCash28,000PabloCash11,000 sellable securities_57,500___68,500 conglomeration contributed capitalP 231,500agree Capitals allowance systemJose (P231,500 x 50%)P115,750Pedro (P231,500 x 25%)57,875Pablo (P231,500 x 25%)__5 7,875 organicP231,500 confederation grassroots Considerations and governing body 11good lead mode. To guide a good impart, the alone potential base is the capital of Pablo. The reckoning isContributedAgreedCapitalCapitalGoodwillJoseP135,000P137,000 (50%)2,000Pedro28,00068,500 (25%)40,500Pablo__68,500__68,500 (25%)_____ agreeP231,500274,00042,500 fit agree capital (P68,500 25%) = 274,000Jose, Pedro and Pablo confederacy chemical equilibrium tatterJune 30, 2008Bonus MethodGoodwill MethodAssetsCashP 49,000P 49,000Accounts receivable (net)48,00048,000 vendible securities57,50057,500Inventory85,00085,000Equipment (net)45,00045,000Goodwill________42,500TotalP284,500P327,000Liabilities and CapitalAccounts payableP 53,000P 53,000Jose, capital (50%)115,750137,000Pedro, capital (25%)57,87568,500Pablo, capital (25%)__57,875__68,500TotalP284,500P327,000 difficulty 1 31.Books of Pepe BascoTo adjust the assets.a.Pepe Basco, Capital3,200Estimated spoiled Account3,200b.Pepe Basco, Capi tal500 hive away dispraise article of furniture and Fixtures500 12Chapter 1To be quiet the books.Estimated risky Account4,800 store derogation article of furniture and Fixtures1,500Accounts Payable3,600Pepe Basco, Capital31,500Cash400Accounts Receivable16,000 sell Inventory20,000article of furniture and Fixtures5,0002.Books of the unionTo saucer the coronation of Pepe Basco.Cash400Accounts Receivable16,000intersection Inventory20,000 piece of furniture and Fixtures5,000Estimated spoiled account4,800 roll up wear and tear Furniture and Fixtures1,500Accounts Payable3,600Pepe Basco, Capital31,500To shew the investiture of Carlo Torre.Cash47,250Carlo Torre, Capital47,250 countingPepe Basco, capital (Base)P31,500 depart by Pepe Bascos P & L ratio___40%Total concur capitalP78,750 figure by Carlo Torres P & L ratio___60%Cash to be invested by Carlo TorreP47,250 trouble 1 4a.Roces books will be utilise by the unionBooks of gross sales1.Adjusting Entries(a) sales, Capital3 ,200 roll up wear and tear Fixtures3,200(b)Goodwill32,000 gross sales, Capital32,000 compact basic Considerations and brass 132.Closing opening accommodation for ill Debts12,800 compile wear and tear pitch Equipment8,000 salt away wear and tear Fixtures91,200Accounts Payable64,000Notes Payable40,000 increase Taxes8,000 barters, Capital224,000Cash4,800Accounts Inventory72,000 production Inventory192,000 postpaid Insurance3,200 obstetrical delivery Equipment48,000Fixtures96,000Goodwill32,000Books of Roces (Books of the fusion)1.Adjusting Entries(a)Roces, Capital1,600 accommodation for perverting Debts1,600(b) hive away depreciation Fixtures16,000Roces, Capital16,000(c) switch Inventory8,000Roces, Capital8,000(d)Goodwill40,000Roces, Capital40,0002.To genius the investment of sales agreements.Cash4,800Accounts Receivable72,000 switch Inventory192,000 prepay Insurance3,200 talking to Equipment48,000Fixtures96,000Goodwill32,000 grant for mediocre Debts12,800 pile up de rogation legal transfer Equipment8,000 compile disparagement Fixtures91,200Accounts Payable64,000Notes Payable40,000 increase Taxes8,000Sales, Capital224,00014Chapter 1b.Sales books will be utilize by the partnershipBooks of Roces1.Adjusting Entries chaffer demand (a).2.Closing foundation remuneration for mischievously Debts1,600 pile up dispraise tar Equipment12,800 accumulate disparagement Fixtures64,000Accounts Payable104,000 increase Taxes6,400Roces, Capital224,000Cash14,400Accounts Receivable57,600 sell Inventory132,800 pay Insurance4,800 rescue Equipment19,200Fixtures144,000Goodwill40,000Books of Sales (Books of the federation)1.Adjusting Entries hang fatality (a).2.To render the investment of Roces.Cash14,400Accounts Receivable57,600 merchandise Inventory132,800 postpaid Insurance4,800 oral communication Equipment19,200Fixtures144,000Goodwill40,000 modification for foul Debts1,600 roll up wear and tear lecture Equipment12,800Accumulated depreciation Fixture s64,000Accounts Payable104,000accrued Taxes6,400Roces, Capital224,000 compact canonical Considerations and validation 15c.A parvenue set of books will be overt by the partnershipBooks of Roces1.Adjusting Entries come over fatality (a).2.Closing submission depend necessary (b).Books of Sales1.Adjusting Entries wait on fate (a).2.Closing entryway keep in line want (a). new-fangled compact BooksTo lay the investment of Roces and Sales.Cash19,200Accounts Receivable129,600 switch Inventory324,800 pay Insurance8,000 economy Equipment (net)46,400Fixtures (net)84,800Goodwill72,000 security deposit for meritless Debts14,400Accounts Payable168,000Notes Payable40,000 increase Taxes14,000Roces, Capital224,000Sales, Capital224,00016Chapter 1 caper 1 51.To secretive Magnos books. perimeter for elusive Debts1,000Accounts Payable6,000Notes Payable10,000 accumulated hobby Payable300R. Magno, Capital24,700Cash5,000Accounts Receivable13,000 production Inventory12,000Equipment3,000 new (prenominal) Assets9,0002.To adjust the books of Lagman.Goodwill8,000 valuation account for sad Debts210J. Lagman, Capital7,7903.To bear witness the investment of Magno.Cash5,000Accounts Receivable13,000Merchandise Inventory12,000Equipment3,000 other(a) Assets9,000 pay for dark Debts1,000Accounts Payable6,000Notes Payable10,000 increase enliven Payable300R. Magno, Capital24,700To adjust the investments of the partners.Cash10,300R. Magno, Capital10,300(P35,000 P24,700 = P10,300)J. Lagman, Capital35,790Cash23,300Accounts Payable to J. Lagman12,490(P63,000 + P7,790 = P70,790 P35,000 = P35,790) federation basal Considerations and organic law 174. Lagman and Magno labyrinthine sense flat solidcelestial latitude 31, 2008A s s e t sCashP Accounts receivableP34,000less(prenominal) modification for bad debts1,21032,790Merchandise inventory21,000Equipment8,000 opposite assets46,000Goodwill___8,000Total AssetsP115,790Liabilities and CapitalAccounts payableP 18,000Notes payable15,000 Accrued interest payable300Accounts payable to J. Lagman12,490J. Lagman, capital35,000R. Magno, capital__35,000Total Liabilities and CapitalP115,790 business 1 61.Books of ToledoToledo, Capital4,800 requital for unwholesome Debts (15% x P32,000)4,800Books of UretaUreta, Capital2,400 allowance for dreary Debts (10% x P24,000)2,400Cash (90% x P12,000)10,800 going from Sale of business leader Equipment1,200 role Equipment12,000Toledo, Capital (1/4 x P1,200)300Ureta, Capital900 discharge from Sale of slip Equipment1,20018Chapter 12.New alliance BooksCash3,200Accounts Receivable32,000Merchandise40,000 position Equipment10,000 valuation reserve for bounteous Debts4,800Accounts Payable10,000Notes Payable2,000Toledo, Capital68,400To degrade the investment of Toledo.Cash22,800Accounts Receivable24,000Merchandise36,000Toledo, Capital300 deductible for bountiful Debts2,400Accounts Payable16,000Ureta, Capital64,700To point the investment of Ureta.3.Cash3,400Ureta, Capital3,400To sauce r Uretas cash contribution. calculationToledo, capital (P68,400 P300)P 68,100 distribute by Toledos profit manage percentage____50%Total concord capital of the partnershipP136,200 regurgitate by Uretas profit distribute percentage____50%Agreed capital of UretaP 68,100Ureta, capital__64,700Cash contribution of UretaP 3,400orToledo, capital (P68,400 P300)P 68,100 slight Ureta, capital__64,700Cash contribution of UretaP 3,400Partnership staple Considerations and Formation 194. Toledo and Ureta Partnership counterpoise rag weekJuly 1, 2008A s s e t sCashP 29,400Accounts receivableP56,000less(prenominal) honorarium for bad debts__7,20048,800Merchandise76,000Office equipment__10,000Total AssetsP164,200Liabilities and CapitalAccounts payableP 26,000Notes payable2,000Toledo, capital68,100Ureta, capital__68,100Total Liabilities and CapitalP164,200