PROBLEM 1Melvin Tan Jr. and Edgar Esparaguera are partners who have capital balances and profit and loss ratio to be sharedas follows:P/L RatioCapital BalancesP350,000P400,0003/5М. Tan Jr.E. Esparaguera2/15Mr. Wilfredo Carreon was admitted in the partnership by buying 2 of the interest of Esparaguera for P300,000.Required: Prepare a journal entry to record the admission of Mr. Carreon in the partnership.Solution: PROBLEM 2lan Abuzo and Charles Edulan were partners who shared profits and losses in the ratio of 1:3. Their respectivecapital balances were as follows:Abuzo - P250,000Edulan - P300,000Evangeline Jamili joins the partnership by buying % interest from Abuzo.Required: Answer the following questions:1. How much is the book value of the interest purchased by Jamili.Answer:

PROBLEM 1 Melvin Tan Jr. and Edgar Esparaguera are partners who have capital balances and profit and loss ratio to be shared as follows: Capital Balances P350,000 P400,000 P/L Ratio 3/5 M. Tan Jr. 2/15 E. Esparaguera Mr. Wilfredo Carreon was admitted in the partnership by buying 2 of the interest of Esparaguera for P300,000. Required: Prepare a journal entry to record the admission of Mr. Carreon in the partnership.

PROBLEM 1 Melvin Tan Jr. and Edgar Esparaguera are partners who have capital balances and profit and loss ratio to be shared as follows: Capital Balances P350,000 P400,000 P/L Ratio 3/5 M. Tan Jr. 2/15 E. Esparaguera Mr. Wilfredo Carreon was admitted in the partnership by buying 2 of the interest of Esparaguera for P300,000. Required: Prepare a journal entry to record the admission of Mr. Carreon in the partnership.

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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Exercise 3-2 (Division of Profit; Interest on Average Capital) Danica and Jenson are partners. Their capital accounts during the fiscal year 2019 were as follows: Danica, Capital 120,000 1/1 Jenson, Capital 3/1 180,000 1/n 1,200,000 140,000 100,000 9/1 800,000 160,000 60,000 4/1 7/1 11/1 10/1 Profit of the partnership is P250,000 for the year. Determine the partners shared profit under the following assumptions: 1. Each partner is to be credited 12% interest on his average capital. 2. Any remaining profit or loss is to be divided equally.
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k The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances/loss percent) Decrease highest LAP to next highest Debit $ 7,808 34,000 24,808 99,908 Decrease LAPs to next highest: $ 164,908 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $110,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $110,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30, 20X1,…
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Problem 2 At April 30, partnership capital of EASCY ANG BM 99.5 Company are Mr. Easy P 52,000, Mr. Ang, P 48,000 and Mr. BM 99.2 P 18,000. The income sharing ratios are 5:4:1, respectively. On May 1, the EASY ANG BM 99.2 Company is formed by admitting Mr. PAPASA AKO to the firm as a partner. Instructions a. Journalize the admission of Mr. PAPASA AKO under each of the following independent assumptions. 1. Mr. PAPASA AKO purchase 50% of Mr. BM 99.2's ownership interest by paying him P 16,000 in cash. a. Mr. PAPASA AKO purchase 33 1/3% of Mr. Ang's ownership interest by paying him P 15,000 in cash b. Mr. PAPASA AKO invest P 62,000 ofr a 30% ownership interest, and bonuses are given to the old partners. C. Mr.PAPASA AKO invest P 42,000 for a 30% ownership interest, which includes a bonus to the new partner. 2. Mr. Ang's capital balance is P 32,000 after admitting Mr. PAPASA AKO to the partnership by investment. IF Mr. Ang's ownership interest is 20% of total partnership capital, what were…