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
