CHAPTER 3 - 42 Chapter 3 CHAPTER 3 MULTIPLE CHOICE ANSWERS...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 42 Chapter 3 CHAPTER 3 MULTIPLE CHOICE ANSWERS AND SOLUTIONS 3-1: c Implied capital of the partnership (P90,000/20%) P450,000 Actual value of the partnership ( 420,000 ) Goodwill P 30,000 AQUINO LOCSIN DAVID HIZON Capital balances before Goodwill P252,000 P126,000 P42,000 Goodwill to old partners __18,000 ___9,000 __3,000 _____ Total P270,000 P135,000 P45,000 Purchase by Hizon (20%) ( 54,000 ) ( 27,000 ) ( 9,000 ) _90,000 Capital balances after admission P216,000 P108,000 P36,000 P 90,000 3-2: b AQUINO LOCSIN DAVID HIZON Capital balances before admission P252,000 P126,000 P42,000 Purchase by Hizon (20%) ( 50,400 ) ( 25,200 ) ( 8,400 ) _84,000 Capital balances after admission P201,600 P100,800 P33,600 P 84,000 3-3: d AQUINO LOCSIN DAVID TOTAL Capital transferred P 50,400 P 25,200 P 8,400 P 84,000 Excess divided using profit and loss ratio __3,600 __1,800 ___600 __6,000 Cash distribution P 54,000 P 27,000 P 9,000 P 90,000 3-4: b Selling price P132,000 Interest sold (444,000X1/5) ( 88,800 ) Combine gain P 43,200 3-5: b Implied value of the partnership (P40,000/1/4) P160,000 Actual value ( 140,000 ) Goodwill P 20,000 BERNAL CUEVAS DIAZ Cash balances P 80,000 P40,000 P 20,000 Goodwill, Profit and Loss ratio __12,000 __6,000 __2,000 Total P 92,000 P46,000P 22, 000 Capital Transfer (1/4) ( 23,000 ) ( 11,500 ) ( 5,500 ) Capital balances after admission P 69,000 P34,500 P 16,500 Partnership Dissolution Changes in Ownership 43 3-6: b BANZON CORTEZ TOTAL Capital Transfer (20%) P 16,000 P 4,000 P20,000 Excess, Profit and Loss ratio __6,000 __4,000 _10,000 Cash distribution P 22,000 P 8,000 P30,000 3-7: d PEREZ CADIZ TOTAL Capital balances beginning P 24,000 P 48,000 P 72,000 Net profit, 1:2 5,430 10,860 16,290 Drawings ( 5,050 ) ( 8,000 )( 13 ,050 ) Capital balances before admission P 24,380 P 50,860 P 75,240 Capital transfer (squeeze) ( 5,570 ) ( 13,240 ) (18,810 ) (1/4) Capital balances after admission 1:2 P 18,810 P 37,620 P 56,430 Capital transfer P 5,570 P 13,240 P18,810 Excess, 1:2 __3,730 __7,460 _11,190 Cash P 9,300 P 20,700 P30,000 3-8: a Total agreed capital (P150,000/5/6) P180,000 Diana's Interest 1/6 Cash distribution P 30,000 3-9: a Total agreed capital (P36,000/1/5) P180,000 Total contributed capital (80,000+40,000+36,000) ( 156,000 ) Unrecognized Goodwill P 24,000 3-10: b Contributed Agreed Increase Capital Capital (Dec.) Old partners P110,000 P100,000 (P 10,000) New partner __40,000 __50,000 _10,000 Total P150,000 P150,000 P Ben, capital balance before admission P 60,000 Bonus share to new partner (10,000X60%) ( 6,000 ) Ben, capital after admission P 54,000 3-11: c Total agreed capital (P40,000+20,000+17,000) P 77,000 Pete's interest 1 /5 Pete's agreed capital balance P 15,400 44 Chapter 3 3-12: b Contributed Agreed Increase Capital Capital (Dec.) Old partner P 65,000 P60,000 (P 5,000) New partner 25,000 (1/3 ) 30,000 _5,000 Total P 90,000 P90,000 P FRED RAUL LORY Capital balances before admission P 35,000 P30,000...
View Full Document

Page1 / 28

CHAPTER 3 - 42 Chapter 3 CHAPTER 3 MULTIPLE CHOICE ANSWERS...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online