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    Solution P2 2 and P2 4

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    James Jharred Umlas
    The document contains the statement of financial position of the April and Arias Partnership as of October 1, 2014. It shows total assets of P2,616,000 consisting of cash, accounts receivable, inventory, and equipment. Total liabilities are P616,000 consisting of accounts payable and accrued expenses. Total capital is P2,000,000 with April's capital at P800,000 and Arias' capital at P1,200,000.

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    Solution P2 2 and P2 4

    Uploaded by

    James Jharred Umlas
    76 views8 pages
    The document contains the statement of financial position of the April and Arias Partnership as of October 1, 2014. It shows total assets of P2,616,000 consisting of cash, accounts receivable, inventory, and equipment. Total liabilities are P616,000 consisting of accounts payable and accrued expenses. Total capital is P2,000,000 with April's capital at P800,000 and Arias' capital at P1,200,000.

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    SOLUTION-P2-2-AND-P2-4.xlsx

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    The document contains the statement of financial position of the April and Arias Partnership as of October 1, 2014. It shows total assets of P2,616,000 consisting of cash, accounts receivable, inventory, and equipment. Total liabilities are P616,000 consisting of accounts payable and accrued expenses. Total capital is P2,000,000 with April's capital at P800,000 and Arias' capital at P1,200,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    76 views8 pages

    Solution P2 2 and P2 4

    Uploaded by

    James Jharred Umlas
    The document contains the statement of financial position of the April and Arias Partnership as of October 1, 2014. It shows total assets of P2,616,000 consisting of cash, accounts receivable, inventory, and equipment. Total liabilities are P616,000 consisting of accounts payable and accrued expenses. Total capital is P2,000,000 with April's capital at P800,000 and Arias' capital at P1,200,000.

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    You are on page 1of 8

    P 2-2

    1 a. April, Capital 9,000 1 pt


    Allowance for Doubtful Accounts 9,000

    b. April, Capital 21,000


    Accrued Expenses 21,000 1 pt

    c. Accumulated Depreciation 112,500


    Accounts Payable 345,000
    Accrued Expenses 21,000
    Allowance for Doubtful Accounts 9,000 5 pts
    April, Capital 800,000
    Cash 187,500
    Accounts Receivable 450,000
    Merchandise Inventory 400,000
    Equipment 250,000

    2 a. Merchandise Inventory 50,000


    Arias, Capital 50,000

    b. Arias, Capital 7,500


    Allowance for Doubtful Accounts 7,500

    c. Cash 357,500
    Arias, Capital 357,500
    P800,000 / 40% x 60% = P1,200,000 - (800,000 + 50,000 – 7,500) = 357,500

    d. Accumulated Depreciation 37,500 1 pt


    Equipment 37,500

    e. Cash 187,500
    Accounts Receivable 450,000
    Merchandise Inventory 400,000 4 pts
    Equipment 137,500
    Allowance for Doubtful Accounts 9,000
    Accounts Payable 345,000
    Accrued Expenses 21,000
    April, Capital 800,000

    April and Arias Partnership


    Statement of Financial Position
    October 1, 2014
    Assets
    Cash P 657,500
    Accounts Receivable P 825,000
    Less Allowance For Doubtful Accounts 16,500 808,500
    Merchandise Inventory 750,000
    Equipment 400,000
    Total Assets P2,616,000

    Liabilities and Capital


    Accounts Payable P 595,000
    Accrued Expenses 21,000
    Total Liabilities P 616,000

    April, Capital P 800,000 5 pts


    Arias, Capital 1,200,000
    Total Capital 2,000,000
    Total Liabilities and Capital P2,616,000
    1 pt
    6 pts
    PROBLEM 2-4

    1 Abante, Capital 150,000 1 pt


    Allowance for Uncollectible Accounts 150,000

    Abante, Capital 200,000 1 pt


    Merchandise Inventory 200,000

    Accumulated Depreciation 210,000


    Abante, Capital 240,000 1 pt
    Furniture and Equipment 450,000

    Abante, capital 360,000.00 1pt


    cash 360,000.00

    Goodwill 250,000 1 pt
    Abante, Capital 250,000
    P2,000,000 – (P2,700,000 -150,000 – 200,000 – 240,000 – 360,000 = P1,750,000) = P250,000

    Cash 3,000,000
    Arevalo, Capital 3,000,000 1 pt

    Land 1,800,000
    Mortgage Payable 300,000 1 pt
    Almonte, Capital 1,500,000

    2 Accounts Receivable 840,000


    Merchandise Inventory 1,000,000
    Furniture and Equipment 600,000 7/2=3.5
    Goodwill 250,000
    Allowance for Uncollectible Accounts 240,000
    Accounts Payable 450,000
    Abante, Capital 2,000,000

    Cash 3,000,000 1 pt
    Arevalo, Capital 3,000,000

    Land 1,800,000
    Mortgage Payable 300,000 1 pt
    Almonte, Capital 1,500,000
    A 500,000.00
    B 200,000.00

    CASH 700,000.00
    A, CAPITAL 500,000.00 proportionate to the capital contribution
    B, CAPITAL 200,000.00

    CASH 700,000.00 Bonus method/approach


    A, CAPITAL 350,000.00 not proportionate to the capital contribution
    B, CAPITAL 350,000.00

    abante capital 240,000.00


    acc. Depreciation 240,000.00 1/2 pt

    acc. Depreciation 450,000.00 1/2 pt


    furniture & equipment 450,000.00

    Compound entry
    Accumulated Depreciation 210,000
    Abante, Capital 240,000
    Furniture and Equipment 450,000

    cost 1,050,000.00 1,050,000.00


    acc. Deprn 210,000.00 450,000.00
    Book value 840,000.00 Agreed value 600,000.00

    Book value 840,000.00 furniture & equipment


    Agreed value 600,000.00 1,050,000.00 should be decrease by 450k
    decrease 240,000.00 to arrive at the balance of 600k
    bal 600,000

    acc. Depreciation 210,000.00


    abante cpital 240,000.00
    furniture & equipment 450,000.00
    al contribution

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