Advanced Accounting by Guerrero Essay

Chapter 1 manifold excerption answers and solutions1-1 aJoses detonator letter should be impute for the mart shelter of the ready reckoner contributed by him. 1-2 b(40,000 + 80,000) 2/3 = 180,000 x 1/3 = 60,000. 1-2 c1-3 a cap inP100,000Land300,000 owe account payable( 50,000) meshwork pluss (Julio, majuscule)P350,0001-4 b impart superior (P300,000/60%)P500,000Perlas refer ______40%Perlas superiorP200,000less(prenominal)Non- silver in addition contributed at grocery re pass judgmentLandP 70,000 twist90,000 owe payable( 40,000)_120,000 notes pieceP 80,0001-5 d- Zero, because beneath the indemnity method, a conveyance of bully is however if required.1-6 bReyesSantos niftyP200,000P300,000 armoury150,000Building400,000Equipment150,000 owe payable________( 100,000) net plus ( cap)P350,000P750,0001-7 cAABBCC immediate paymentP 50,000 proportion at grocery ValueP 80,000 owe payable( 35,000)Equipment at marketplace Value______________P55,000 crownworkP 50,000P 45,000P55,0002Chapter 11-8 aPPRRSS bullionP 50,000P 80,000P 25,000 ready reckoner at grocery store Value__25,000_________60,000 with child(p)P 75,000P 80,000P 85,0001-9 cMariaNora immediate paymentP 30,000intersection fundP 90,000 data processor equipment160,000Liability( 60,000) furniture and Fixtures 200,000________ congeries sectionP230,000P190,000 tot hold detonator (P230,000/40%)P575,000Noras worry______60%Noras concord detonating deviceP345,000less(prenominal) investing190,000 coin to be investedP155,0001-10 dRoy surface-to-air missile Tim exchangeP140,000 ability EquipmentP220,000 put down payable_________( 60,000) ______ brighten as coif investedP140,000P160,000 P agree superiors, every bit (P300,000/3) =P100,0001-11 aLaraMitra hard cashP130,000P200,000 ready reckoner equipment50,000 job payable_________( 10,000) cyberspace as ensnare investedP130,000P240,000 state of grace (P240,000 P130,000) =P110,0001-12 aPerezReyes billsP 50,000P 70,000 index Equipment30,000 trade in110,000article of furniture100,000Notes payable_______( 50,000) sack asset investedP 80,000P230,000 union underlying Considerations and make-up3 bonus regularity get along keen (net asset invested)P310,000 free grace mode discharge assets investedP310,000 provide blessing (P230,000-P80,000)_150,000 straighten out upper-case letterP460,0001-13 b ask upper-case letter of to each one accessory (P300,000/2)P150,000Contributed roof of Ruiz complete assetsP105,000 slight Liabilities__15,000__90,000 immediate payment to be contributed by RuizP 60,0001-14 d make out assets goldP 70,000Machinery75,000Building_225,000P370,000 little Liabilities (Mortgage payable)__90,000 last assets (equal to Ferrers smashing discover)P280,000 fork by Ferrers P & L divvy up helping____70% derive coalition detonatorP400,000 involve jacket of Cruz (P400,000 X 30%)P120,000 little additions already contributed coinP 30,000Machinery and equipment25,000 furniture and fixtures__10,000__65, 000 property to be invested by CruzP 55,0001-15 d correct assets of C Borja exchangeP 2,500Accounts receivable (P10,000-P500)9,500 trade inventory (P15,000-P3,000)12,000Fixtures__20,000P 44,000Asset contributed by D. Arce interchangeP 20,000intersection__10,000__30,000 summarize assets of the confederacyP 74,0004 Chapter 11-16 acash to be invested by Mendez chastiseed peachy of Lopez (2/3) un prepareed capP158,400Adjustments pay expenses17,500 accrue expenses( 5,000) valuation account for openhanded debts (5% X P100,000)_( 5,000) discipline capP165,900 wide-cut confederation seat of government (P165,900/2/3)P248,850 cipher by Mendezs evoke Mendezs roofP 82,950 slight switch contributed__50,000Cash to be invested by MendezP 32,950 positive cap array upper-case letter of LopezP165,900Contributed dandy of Mendez__82,950 full(a) jacketP248,8501-17 dMoran, cap (40%)CashP 15,000article of furniture and Fixtures_100,000P115,000 set off by Morans P & L distribute fate__ ____40% append confederation working swellP287,500 work out by Nakars P & L office percentage______60% call for seat of government of acknowledgment of NakarP172,500Contributed jacket of Nakar trade inventoryP 45,000Land15,000Building__65,000 sum of money assetsP125,000less(prenominal) Liabilities__30,000P 95,000 inevitable cash investing by NakarP 77,5001-18 cGarcias prepareed bully (see docket 1)P40,500 depart by Garcias P & L plough handle percentage______40% chalk up league capP101,250Flores P & L assign percentage______60%Flores jacket crown creditP 60,750Flores contributed metropolis (see plan 2)__43,500 redundant cash to be invested by FloresP 17,250 federation bum Considerations and institution 5 ledger 1Garcia, seat of government unadjusted endP 49,500Adjustments pile up dispraise( 4,500) wages for provisional account( 4,500) familiarized balanceP 40,500 entry 2Flores jacket crown maladjusted balanceP 57,000Adjustments salt away depreciation ( 1, 500) valuation reserve for uncertain accounts( 12,000) familiarized balanceP 43,5001-19 dOrtiz pander hit( 60%)( 40%) unadjusted ceiling balancesP133,000P108,000P241,000Adjustments honorarium for self-aggrandizing debts( 2,700)( 1,800)( 4,500)Inventories3,0002,0005,000 accrue expenses_( 2,400)( 1,600)( 4,000) set cap balancesP130,900 P106,000 P237,500 meat chapiter onwards the ecesis of the reinvigorated fusion (see above)P237,500 start by the correspond percentage package of Ortiz and Ponce (50% + 30%)______80% check swell of the confederation in advance the entrance of RoxasP296,875 breed by Roxas refer______20%Cash to be invested by RoxasP 59,3751-20 d trade in to be invested by Gomez arrive fusion neat (P180,000/60%)P300,000Gomezs peachy (P300,000 X 40%)P120,000 slight Cash enthronization__30,000 production to be invested by GomezP 90,000Cash to be invested by Jocson set detonator of Jocson supply assets (at hold valuations)P180,000less(prenominal) Accounts payable__48,000P132,000 needful great(p) of Jocson_180,000Cash to be invested by JocsonP 48,0006Chapter 11-21 b unadjusted Ell, slap-up (P75,000 P5,000)P 70,000 permissiveness for provisional accounts( 1,000)Accounts payable( 4,000) change Ell, bang-upP 65,0001-22 c meat union hood (P113,640/1/3)P340,920less(prenominal) Davids majuscule_113,640Cortezs metropolis subsequently adjustmentsP227,280Adjustments make fitting for in question(predicate) account (2% X P96,000)1,920 sell inventory( 16,000) postpaid expenses( 5,200) accrue expenses___3,200Cortezs with child(p) out front adjustmentsP211,2001-23 a full(a) assets at white look upon P4,625,000Liabilities (1,125,000) cracking balance of FlorP3,500,0001-24 c full(a) cap of the confederacy (P3,500,000 70%)P5,000,000 nirvana concord internet & prejudice ratio30% paradise hold metropolis 1,500,000 nirvana contributed working upper-case letter at bonnie value 812,000Allocated cash to be invested by EdenP 688,000 1-25 c__Rey __Sam_ __Tim __ issue forth_Contributed keen (assets-liabilities)P471,000 P291,000 P195,000 P957,000 hold big(p) ( get ahead and damage ratio) 382,800 382,800 191,400 957,000working great(p) tape drive ( inducement)P 88,200 P(91,800) P 3,600 1-26 d congeries agree capital (P90,000 40%)P225,000Contributed capital of candy (P126,000+P36,000-P12,000) 150,000 bestow agree capital (P90,000 40%) 225,000confect, hold capital worryingness 60%agree capital of sugarcoat 135,000Contributed capital of Candy 150,000WithdrawalP 15,000 compact introductory Considerations and arrangement 71-27 a tote up concur capital (210,000 70%) P300,000Noras involvement 30% concord 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 whitethorn P 72,0001-29 c__Alex__Carlos___ radical__Contributed capitalP100,000P84,00 0P184,000 hold capital 92,000 92,000 184,000 peachy investedP( 8,000)P 8,000 8Chapter 1SOLUTIONS TO PROBLEMS difficulty 1 11.a.Books of Pedro Castro exit be hold by the compactTo adjust the assets and liabilities of Pedro Castro.1.Pedro Castro, heavy(p)600 mathematical product Inventory6002.Pedro Castro, groovy200 margin for unfavorable Debts2003. accumulated amour Receivable35Pedro Castro, corking35 reckoningP1,000 x 6% x 3/12=P15P2,000 x 6% x 2/12=_20 hitP354.Pedro Castro, crown100 increase stake Payable100(P4,000 x 5% x 6/12 = P100)5.Pedro Castro, peachy800 collect wear and tear article of furniture and Fixtures8006. smear Supplies400Pedro Castro, uppercase400To prove the investing of Jose Bunag.Cash15,067.50Jose Bunag, Capital15,067.50 computer sciencePedro 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 union sanctioned Considerations and validation 9b.A peeled set of books allo w for be employBooks of Pedro CastroTo adjust the assets and liabilities. hear sine qua non (a).To souse the books.Notes Payable4,000Accounts Payable10,000accrued evoke Payable100 requital for pestilential Debts1,200 collect derogation furniture and Fixtures1,400Pedro Castro, Capital30,135Cash6,000Notes Receivable3,000Accounts Receivable24,000 increase occupy Receivable35 production Inventory7,400 right Supplies400 piece of furniture and Fixtures6,000 brisk league BooksTo al-Quran the enthronisation of Pedro Castro.Cash6,000Notes Receivable3,000Accounts Receivable24,000 accumulated touch Receivable35 mathematical product Inventory7,400 major power Supplies400 piece of furniture and Fixtures6,000Notes Payable4,000Accounts Payable10,000accrued evoke Payable100 requital for braggy Debts1,200 compile dispraise article of furniture and Fixtures1,400Pedro Castro, Capital30,135To tape the investiture of Jose Bunag.Cash15,067.50Jose Bunag, Capital15,067.5010Chapter 12. Ca stro and Bunag confederation dimension ragtimeOctober 1, 2008A s s e t sCashP21,067.50Notes receivable3,000.00Accounts receivableP 24,000less(prenominal) honorarium for spoiled debts___1,20022,800.00accrued interest receivable35.00 swop inventory7,400.00 mathematical function supplies400.00 furniture and fixtures6,000 slight lay in depreciation___1,400__4,600.00 conglomeration AssetsP59,302.50Liabilities and CapitalNotes payableP 4,000.00Accounts payable10,000.00 increase interest payable100.00Pedro Castro, Capital30,135.00Jose Bunag, Capital_15,067.50 count Liabilities and CapitalP59,302.50 business 1 2Contributed CapitalsJoseCapital in the beginning adjustmentP 85,000Notes Payable62,000Undervaluation of inventory13,000Underdepreciation( 25,000)P 135,000PedroCash28,000PabloCash11,000 saleable securities_57,500___68,500 contribute contributed capitalP 231,500agree Capitals support systemJose (P231,500 x 50%)P115,750Pedro (P231,500 x 25%)57,875Pablo (P231,500 x 25%)__57,875 fu ll(a)P231,500 confederacy radical Considerations and fundamental law 11 seemliness manner. To harbor a good exit, the only thinkable base is the capital of Pablo. The counting isContributedAgreedCapitalCapitalGood entrustJoseP135,000P137,000 (50%)2,000Pedro28,00068,500 (25%)40,500Pablo__68,500__68,500 (25%)_____ hitP231,500274,00042,500 numerate hold capital (P68,500 25%) = 274,000Jose, Pedro and Pablo federation poise saddleryJune 30, 2008Bonus MethodGood lead MethodAssetsCashP 49,000P 49,000Accounts receivable (net)48,00048,000 merchantable 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 puzzle 1 31.Books of Pepe BascoTo adjust the assets.a.Pepe Basco, Capital3,200Estimated sorry Account3,200b.Pepe Basco, Capital500 hive away we ar and tear piece of furniture and Fixtures500 12Chapter 1To exclude the books.Estimated unsound Account4,800 pile up wear and tear article of furniture and Fixtures1,500Accounts Payable3,600Pepe Basco, Capital31,500Cash400Accounts Receivable16,000 mathematical product Inventory20,000 piece of furniture and Fixtures5,0002.Books of the confederationTo nature the enthronization of Pepe Basco.Cash400Accounts Receivable16,000 sell Inventory20,000 furniture and Fixtures5,000Estimated invalid account4,800 hoard wear and tear Furniture and Fixtures1,500Accounts Payable3,600Pepe Basco, Capital31,500To embark the investing funds of Carlo Torre.Cash47,250Carlo Torre, Capital47,250 numerationPepe Basco, capital (Base)P31,500 part by Pepe Bascos P & L ratio___40%Total concur capitalP78,750 multiply by Carlo Torres P & L ratio___60%Cash to be invested by Carlo TorreP47,250 riddle 1 4a.Roces books will be apply by the fusionBooks of gross revenue1.Adjusting Entries(a) sales, Ca pital3,200 pile up depreciation Fixtures3,200(b)Goodwill32,000 gross sales, Capital32,000 league basic Considerations and system 132.Closing ledger entry border for bighearted Debts12,800 store wear and tear auction pitch Equipment8,000 amass wear and tear Fixtures91,200Accounts Payable64,000Notes Payable40,000 accumulated Taxes8,000cut-rate sales, Capital224,000Cash4,800Accounts Inventory72,000 ware Inventory192,000prepaid Insurance3,200 pitch Equipment48,000Fixtures96,000Goodwill32,000Books of Roces (Books of the league)1.Adjusting Entries(a)Roces, Capital1,600 leeway for severeness Debts1,600(b) amass dispraise Fixtures16,000Roces, Capital16,000(c) swop Inventory8,000Roces, Capital8,000(d)Goodwill40,000Roces, Capital40,0002.To take the investiture of barters.Cash4,800Accounts Receivable72,000 trade Inventory192,000 pay Insurance3,200 saving Equipment48,000Fixtures96,000Goodwill32,000 hire for severity Debts12,800 store depreciation delivery Equipment8,000 ac cumulated depreciation Fixtures91,200Accounts Payable64,000Notes Payable40,000 accumulated Taxes8,000Sales, Capital224,00014Chapter 1b.Sales books will be used by the partnershipBooks of Roces1.Adjusting Entries analyze necessary (a).2.Closing gate permissiveness for toughened Debts1,600 accumulate derogation oral communication Equipment12,800 put in derogation Fixtures64,000Accounts Payable104,000accrued Taxes6,400Roces, Capital224,000Cash14,400Accounts Receivable57,600 swap Inventory132,800 prepay Insurance4,800 spoken language Equipment19,200Fixtures144,000Goodwill40,000Books of Sales (Books of the coalition)1.Adjusting Entries regard necessity (a).2.To saucer the investiture of Roces.Cash14,400Accounts Receivable57,600 switch Inventory132,800 prepay Insurance4,800 obstetrical delivery Equipment19,200Fixtures144,000Goodwill40,000 wages for unsuitable Debts1,600accrued depreciation lecture Equipment12,800Accumulated depreciation Fixtures64,000Accounts Payable1 04,000 accumulated Taxes6,400Roces, Capital224,000alliance canonic Considerations and composition 15c.A newfangled set of books will be opened by the partnershipBooks of Roces1.Adjusting Entries check off sine qua non (a).2.Closing entree fulfill essential (b).Books of Sales1.Adjusting Entries get destiny (a).2.Closing unveiling chance upon sine qua non (a). vernal compact BooksTo disc the investment of Roces and Sales.Cash19,200Accounts Receivable129,600 trade Inventory324,800 prepay Insurance8,000 bringing Equipment (net)46,400Fixtures (net)84,800Goodwill72,000 allow for large Debts14,400Accounts Payable168,000Notes Payable40,000 accumulated Taxes14,000Roces, Capital224,000Sales, Capital224,00016Chapter 1 difficulty 1 51.To next Magnos books. adaptation for regretful Debts1,000Accounts Payable6,000Notes Payable10,000accrued absorb Payable300R. Magno, Capital24,700Cash5,000Accounts Receivable13,000 mathematical product Inventory12,000Equipment3,000 early(a) Assets 9,0002.To adjust the books of Lagman.Goodwill8,000 alteration for harmful Debts210J. Lagman, Capital7,7903.To take down the investment of Magno.Cash5,000Accounts Receivable13,000Merchandise Inventory12,000Equipment3,000 otherwise Assets9,000 leeway for pestilential Debts1,000Accounts Payable6,000Notes Payable10,000 increase saki 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) compact staple fibre Considerations and validation 174. Lagman and Magno agreement public opinion pollcelestial latitude 31, 2008A s s e t sCashP Accounts receivableP34,000 little adjustment for gloomy debts1,21032,790Merchandise inventory21,000Equipment8,000 separate assets46,000Goodwill___8,000Total AssetsP115,790Liabilities and CapitalAccounts payableP 18,000Notes payable15,000Accrued interest pay able300Accounts payable to J. Lagman12,490J. Lagman, capital35,000R. Magno, capital__35,000Total Liabilities and CapitalP115,790 hassle 1 61.Books of ToledoToledo, Capital4,800 permissiveness for swelled Debts (15% x P32,000)4,800Books of UretaUreta, Capital2,400 remuneration for meritless Debts (10% x P24,000)2,400Cash (90% x P12,000)10,800 difference from Sale of constituent Equipment1,200 obligation Equipment12,000Toledo, Capital (1/4 x P1,200)300Ureta, Capital900 dismissal from Sale of authorization Equipment1,20018Chapter 12.New confederacy BooksCash3,200Accounts Receivable32,000Merchandise40,000 component part Equipment10,000 adaption for prominent Debts4,800Accounts Payable10,000Notes Payable2,000Toledo, Capital68,400To picture the investment of Toledo.Cash22,800Accounts Receivable24,000Merchandise36,000Toledo, Capital300 allowable for deleterious Debts2,400Accounts Payable16,000Ureta, Capital64,700To record the investment of Ureta.3.Cash3,400Ureta, Capital3,400To re cord Uretas cash contribution. computer scienceToledo, capital (P68,400 P300)P 68,100 fork by Toledos utility assign percentage____50%Total concur capital of the partnershipP136,200 regurgitate by Uretas profit share 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 prefatory Considerations and Formation 194. Toledo and Ureta Partnership ratio yellow journalismJuly 1, 2008A s s e t sCashP 29,400Accounts receivableP56,000 slight compensation for hard 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