1. Jag, Lee and Bench are partners having the following capital balances of P11,200, P13,000 and P5,800 respectively. Profits and losses are shared 4:2:1. How much is the loss absorption capacity of Lee?Required to answer. Single choice. a. P13,000 b. P45,500 c. P26,000 d. cannot be determined 2. Lebron and Wade, partners who share profits and losses equally decided to liquidate their partnership by installment. The statement of financial position showed Cash – P 35,000; P Liabilities – P 20,000; Lebron, Capital – P71,000; and Wade, Capital – P 54,000. Liquidation expenses amounted to P 10,000. How much cash can be distributed safely toeach partner at this point? a. Lebron-P3,000; Wade- P0 b. Lebron-P5,000; Wade-P500 c. Lebron-P5,000; Wade-0 d. Lebron- P5,000; Wade- P1,000 3. On December 31, 2020 and 2019, Bucks Corporation had 105,000 Ordinary Shares issued, 5,000 shares in the treasury, 10,000 shares subscribed and 10,000 5% Preference Shares, cumulative issued, P 100 par value. No dividends were declared in2020 and 2019. Profit for the year 2020was P 900,000. What amount should be reported as basic earnings per share? a. P8.00 b. P8.10 c. P8.50 d. P7.73
1. Jag, Lee and Bench are partners having the following capital balances of P11,200, P13,000 and P5,800 respectively. Profits and losses are shared 4:2:1. How much is the loss absorption capacity of Lee?Required to answer. Single choice. a. P13,000 b. P45,500 c. P26,000 d. cannot be determined 2. Lebron and Wade, partners who share profits and losses equally decided to liquidate their partnership by installment. The statement of financial position showed Cash – P 35,000; P Liabilities – P 20,000; Lebron, Capital – P71,000; and Wade, Capital – P 54,000. Liquidation expenses amounted to P 10,000. How much cash can be distributed safely toeach partner at this point? a. Lebron-P3,000; Wade- P0 b. Lebron-P5,000; Wade-P500 c. Lebron-P5,000; Wade-0 d. Lebron- P5,000; Wade- P1,000 3. On December 31, 2020 and 2019, Bucks Corporation had 105,000 Ordinary Shares issued, 5,000 shares in the treasury, 10,000 shares subscribed and 10,000 5% Preference Shares, cumulative issued, P 100 par value. No dividends were declared in2020 and 2019. Profit for the year 2020was P 900,000. What amount should be reported as basic earnings per share? a. P8.00 b. P8.10 c. P8.50 d. P7.73
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1. Jag, Lee and Bench are partners having the following capital balances of P11,200, P13,000 and P5,800 respectively.
How much is the loss absorption capacity of Lee?Required to answer. Single choice.
a. P13,000
b. P45,500
c. P26,000
d. cannot be determined
2. Lebron and Wade, partners who share profits and losses equally decided to liquidate their partnership by installment. The statement of financial position showed Cash – P 35,000; P Liabilities – P 20,000; Lebron, Capital – P71,000; and Wade, Capital – P 54,000. Liquidation expenses amounted to P 10,000. How much cash can be distributed safely toeach partner at this point?
a. Lebron-P3,000; Wade- P0
b. Lebron-P5,000; Wade-P500
c. Lebron-P5,000; Wade-0
d. Lebron- P5,000; Wade- P1,000
3. On December 31, 2020 and 2019, Bucks Corporation had 105,000 Ordinary Shares issued, 5,000 shares in the treasury, 10,000 shares subscribed and 10,000 5%Preference Shares , cumulative issued, P 100 par value. No dividends were declared in2020 and 2019. Profit for the year 2020was P 900,000. What amount should be reported as basic earnings per share?
a. P8.00
3. On December 31, 2020 and 2019, Bucks Corporation had 105,000 Ordinary Shares issued, 5,000 shares in the treasury, 10,000 shares subscribed and 10,000 5%
a. P8.00
b. P8.10
c. P8.50
d. P7.73
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