Choose a letter and show your solution. 12. The year-end balance sheet and residual profit and loss sharing percentages for the Glenn, Harry, and lan partnership on December 31, 2015, are as follows: Cash P 60,000 Accounts payable P150,000 Loan to Glenn 50,000 Loan from Harry 50,000 Other assets 360,000 Glenn, capital (25%) 70,000 80,000 Harry, capital (25%) lan, capital 120,000 Total assets P 470.000 Total liab./equity P 470,000 The partners agree to liquidate the business and distribute cash when it becomes available. A cash distribution plan is developed with vulnerability rankings for the Glenn, Harry and lan partnership. After outside creditors are paid, the cash available will initially go to A. Glenn in the amount of P20,000 C Harry in the amount of P70,000 B. Harry in the amount of P50,000 D. lan in the amount of P40,000 13. Income ratios are 2:4:4 for Harriet, Mike, and Elly, respectively. Assets Liabilities and Owners' Equity Cash P 9,000 Accounts payable P 21,000 Accounts Harriet, capital 23,000 receivable 22,000 Mike, capital 8,000 Inventory 73.000 Elly, capital 52.000 P104.000 P104.000 Assume that as part of liquidation proceedings, Soeskille sells its noncash assets for P85,000. The amount of cash that would ultimately be distributed to Elly would be: PS2,000 b. P48,000 c. P34,000 d. P86,000 a 14. Oh, Pe, and Sy are in the process of liquidating their partnership. Sy has agreed to accept the inventory, which has a fair value of P60,000, as part of her settlement. A balance sheet and the residual profit and loss sharing percentages are as follows: Cash P 248,000 Accounts payable P 180,000 Inventory 100,000 Oh, capital (40%) 98,000 Plant assets 280,000 175,000 Pe, capital (40%) Sy, capital (20%) 175,000 Total assets P628,000 Total liab./equity P 628,000 If the partners then distribute the available cash using a safe payments schedule, Sy will receive a. P 41,000 cash C.P 27,000 cash b. P 51,000 cash d. P 248,000 cash 15. On December 31, the capital balances and income ratios in TEP Company are as follows. Partner Capital Balance Income Ratio Traxer. P60,000 50% Emig. 40,000 30% Posada 30,000 20% Each of the continuing partners agrees to pay P18,000 in cash from personal funds to purchase Posada's ownership equity. Each receives 50% of Posada's equity. How much is the capital balance of Traxerafter the dissolution? a. 75,000 b. 78,000 c. 55,000 d. 58,000 8. A partnership began its first year of operations with the following capital balances: Y, Capital: P143,000 E, Capital: P104,000 T, Capital: P143,000. The Articles of Partnership stipulated that profits and losses be assigned in the following manner: Y was to be awarded an annual salary of P26,000 with P13,000 salary assigned to T. Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year. The remainder was to be assigned on a 5:2:3 basis, respectively. Each partner was allowed to withdraw up to P13,000 per year. Assume that the net loss for the first year of operations was P26,000 with net income of P52,000 in the second year. Assume further that each partner withdrew the maximum amount from the business each year. What was the balance in T's Capital account at the end of the second year? A.P 133, 380 C.P 105,690 B. P 84,760 D. P 132, 860 9. Louisa Santiago purchases 50% of Leo Lemon's capital interest in the K & L partnership for P22,000. If the capital balance of Kate Kildare and Leo Lemon are P40,000 and P30,000, respectively, Santiago's capital balance following the purchase is: a. P22,000 b. P35,000 c. P20,000 d. P15,000 10. Capital balances in the MEM partnership are Mary, Capital P60,000, Ellen, Capital P50,000; and Mills, Capital P40,000, and income ratios are 5.3.2, respectively. The MEMO partnership is formed by admitting Oleg to the firm with a cash investment of P50,000 for a 25% capital interest. The bonus to be credited to Mills, Capital in admitting Oleg is: a. P10,000 b. P7,500 c. P3,750 d. P1,500 11. Capital balances in the MURF partnership are Molly, Capital P50,000, Ursula, Capital P40,000, Ray, Capital P30,000; and Fred, Capital P20,000, and income ratios are 4-3-2-1, respectively. Fred withdraws from the firm following payment of P29,000 in cash from the partnership. Ursula's capital balance after recording the withdrawal of Fred is: a. P36,000. b. P37,000 CP38,000 d. P40,000