Junior Philippine Institute of Accountants-latest QB + with answers

Junior Philippine Institute of Accountants-latest QB + with answers

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Junior Philippine Institute of Accountants Name: __________________________________________ Student ID no: ______________ Score: _________________ 1. Rachael, Sam, and Tan are partners sharing profits in the ratio of 3:3:2. On June 30, 2011 their capital balances are as follows: Rachael P600,000 Sam 400,000 Tan 300,000 On same date, the partners agree to admit Allen on the following agreement: 1. Allen is to pay Rachael P400,000 for ½ interest of Rachael’s interest. 2. Allen is also to investment P300,000 in the partnership. 3. the total capital of the partnership is to be P2,000,000 of which Allen’s interest is to be 25%. What are the capital balances of the partners after the admission of Allen? Rachael Sam Tan a. P487,500 P587,500 P425,000 b. 300,000 400,000 300,000 c. 400,000 300,000 300,000 d. 187,500 187,500 125,000 2. Which of the following best describes a possible result of treasury stock transactions of a corporation? (a) may directly decrease but not increase retained earnings (b) may affect stockholders’ equity if the cost method is used instead of the par value method (c) may increase but not decrease reported net earnings (d) may decrease but not increase reported net earnings 3. On May 2, 2012, O and P formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. O contributed a parcel of land that cost P10,000. P contributed P40,000 cash. The land was sold for P18,000 on May 2, 2012, immediately after the formation of the partnership. What amount should be recorded in O’s capital account on the formation of the partnership? a. P18,000 b. P15,000 c. P17,400 d. P10,000 4. The December 31, 2012 the adjusted trial balance of Marzzz Corporation shows the following balances, among others: Preferred stock, P100 par 300,000 Common stock, P10 par 400,000 Common stock dividend payable 20,000 Dividends payable – cash 25,000 Retained earnings appropriated for plant expansion 210,000 Retained earnings unappropriated 216,000 Retained earnings appropriated for treasury stock 80,000 Retained earnings appropriated for retirement of preferred stock 30,000 Donated capital 100,000 Treasury common stock, 2,000 shares, at cost 80,000 Excess over par – preferred 15,000 Excess over par – common 84,000 What is the amount of stockholders’ equity on December 31, 2012? (a) 1,455,000 (b) 1,375,000 (c) 1,350,000 (d) 1,425,000
Background image of page 1

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

View Full DocumentRight Arrow Icon
5. Salmeo Corporation holds 10,000 shares of its 10 par value common stock as treasury stock reacquired in 1993 for P120,000. On December 12, 2005, Salmeo issued all 10,000 shares for P190,000. Under the cost method of accounting for treasury stock, the reissuance would result in a credit to: a. Capital stock of 100,000. b.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 12

Junior Philippine Institute of Accountants-latest QB + with answers

This preview shows document pages 1 - 3. Sign up to view the full document.

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