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FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Griffin and Rhodes formed a partnership on January 1, 2022. Griffin contributed cash of P120,000 and Rhodes contributed land with a fair value of P160.000. The partnership assumed the mortgage on the land which amounted to P40,000 on January 1. Rhodes originally paid P90,000 for the land. On July 31, 2022, the partnership sold the land for P190,000. Assuming Griffin and Rhodes share profits and losses equally, how much of the gain from the sale of land should be credited to Griffin? O 30,000 15,000 O 35,000 12.857 3. Paul and Ray sell instruments through their partnership. To bring in additional funds and expertise, they decide to add Janet to the partnership. Paul's capital is P400,000, Ray's capital is P200,000, and Janet invested P180,000. It was agreed that Janet and Ray will have equal capital balances and Paul will have a 35% capital interest. Using the bonus method, what will be the adjusted capital of Paul? O 273,000 O 300,000 O 253,500 O 260,000
Transcribed Image Text:Griffin and Rhodes formed a partnership on January 1, 2022. Griffin contributed cash of P120,000 and Rhodes contributed land with a fair value of P160.000. The partnership assumed the mortgage on the land which amounted to P40,000 on January 1. Rhodes originally paid P90,000 for the land. On July 31, 2022, the partnership sold the land for P190,000. Assuming Griffin and Rhodes share profits and losses equally, how much of the gain from the sale of land should be credited to Griffin? O 30,000 15,000 O 35,000 12.857 3. Paul and Ray sell instruments through their partnership. To bring in additional funds and expertise, they decide to add Janet to the partnership. Paul's capital is P400,000, Ray's capital is P200,000, and Janet invested P180,000. It was agreed that Janet and Ray will have equal capital balances and Paul will have a 35% capital interest. Using the bonus method, what will be the adjusted capital of Paul? O 273,000 O 300,000 O 253,500 O 260,000
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