.ChangesinEquity - Search Mailings Review View Help AaBbCcDd AaBbCcDd AaBbC( AaBbCet AaB AaBbCCD AnB A 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subt Paragraph Styles 2 . 3 - 4 - 1 . 5 . 1.6 . 1 .7 1 8 . 10 . 1 11 . 1 . 12 1 . 13 . 1 . 14 . 1 . 15 1 16 6 1. Philip, of Philip and Romy, partners sharing profits in the ratio of 60% and 40% wants to retire. The partners agree that the fixed assets are undervalued by P20,000, that goodwill is worth P15,000, and that Philip's share of these increases shall be recorded and creditable to his capital account. Since the working capital is only P70,000, it is decided that Philip shall receive only one- third of his adjusted capital credit in cash. For the remainder, he accepts securities, which have been carried as other assets at their book value and market value of P12,000, and a six-month note payable. The balance sheet, which is then prepared, appears as follows: Current assets P 53,000 Current liabilities P 52,000 Other assets 3,000 Romy, capital 50,000 Fixed assets 37,000 Goodwill 9,000 Total P102,000 P102,000 Questions: a. Current assets before Philip's retirement must be: b. Current liabilities before Philip's retirement must be: c. Fixed assets before Philip's retirement must be: d. Other assets before Philip's retirement must be: e. Philip's adjusted capital balance must be:8 . 1 9 10 . W . 11 . 1 . 12 1 . 13 . 1 . 14: 1 15 . 2. The balance sheet of R and S, a partnership appears as follows: R AND S PARTNERSHIP Balance Sheet October 31, 2018 ASSETS Current Assets: Cash P 41,100 Accounts Receivable P212,160 Allowance for bad debts 8.000 204,160 Inventories 241,100 Prepaid expenses 10.140 P496,500 Plant Assets: Furniture and Fixtures P 241,000 Accumulated Depreciation 68.200 172.000 Total assets P669.300 LIABILITIES AND CAPITAL Current Liabilities: Accounts payable P161,400 Accrued expenses 20.000 P182.200 Partner's capital: R, capital P260,350 S, capital 226.750 487.100 Total Liabilities and capital P669.300 R and S share profits and losses equally. The partners incorporate as H & G Corporation with an authorized capital of 5,000 shares at P100 par stock, of which 4,400 are issued to the partners in exchange for their interest in the net assets of R and S, and the remainder are issued at P120 per share for cash. The partners agree that the following adjustment should be recorded: Allowance for bad debts decreased by P 4,000 Inventories increased by 12,000 Accumulated depreciation decreased by 6,200 Goodwill is to be recognized in an amount which will cause the net assets of the partnership to equal the cash issuance price of the shares to be issued therefore. Questions: a. How much is the additional paid-capital contributed by R and S to the new corp.? b, How much goodwill is to be recognized in the corporation's books? C. How many shares R will receive?9. The partnership of T, U and V is being absorbed by ACE Corp. The latter will issue 19,000 shares of P100 par value capital stock in exchange for the net assets of the partnership. As of this date, the net assets of the partnership amount to P1,500,000 and the capital balances of T, U and V are proportionate to their profit sharing ratio of 5:3:2. It has been agreed upon by all parties that the merchandise inventory of the partnership should be adjusted upwards by P150,000. Questions: A) How much is the partnership goodwill as implied in the above transactions? B) How much are the capital account balances of T, U and V, respectively, immediately before the turnover of the net assets to the corporation