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Score Instruction: Encircle the letter of your choice. 1. K.Marasigan had a beginning capital balance of P200,000 in the Marasigan & K.Quimson Partnership. During the

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Score Instruction: Encircle the letter of your choice. 1. K.Marasigan had a beginning capital balance of P200,000 in the Marasigan & K.Quimson Partnership. During the year Marasigan invested P35,000 and had withdrawals of P60,000. His share of net income for the year was P80,000. What is Marasigan's ending capital balance? a. P95,000 b. P185,000 C. P305,000 P255,000 2. Leones and Malanum partnership has income of P110,000 and Partner Leones is to be allocated a bonus of 10% of income after the bonus. Leones' bonus would be a. P11,000 (6. P10,000 C. P9,091 d. P9,000 3. Cabello and Dacanay are partners in a trading company. During 2020, they withdrew their salary allowances of P250,000 and P375,000, respectively. Profits and losses are shared in the ratio of 3:2. The income summary account before any profit allocation has a credit balance of P750,000. The partners' capital account show the following: Cabello Dacanay Beginning balances P750,000 P500,000 Additional investments 125,000 250,000 Withdrawals other than salary allowances (250,000) (125,000) 121 PARTNERSHIP AND CORPORATION ACCOUNTING CHAPTER 3/A closing b. P210,00 CP285,00 d. P310,00 What are the capital balances of the partners for the year 2020 after income summary and withdrawals accounts? Cabello Dacanay a. P700,000 P675,000 b. P450,000 P300,000 C. P575,000 P425,000 d. P950,000 P1,050,000 7. Partners Ma 4. Partner Manamtam had a capital balance on January 1, 2020 of P45,000 and made additional capital contributions during 2020 totaling P50,000. During the year 2020, Manamtam withdrew P8,000 per month. Manamtam's post. closing capital balance on December 31, 2020 is P30,000. Manamtam's share of 2020 partnership income is a. P96,000 b. P50,000 P31,000 d. P8,000 following pr Naranja, res bonus; and P50,000 for equally. If the allocated to a. P36,000 b. P44,500 C. P50,000 d. P43,500 8. The partner that Malicd receive an a be dividede and Nabua P639,000. T 5. Abalos and his very close friend Bacani formed a partnership on January 1, 2020 with Abalos contributing P24,000 cash and Bacani contributing equipment with a book value of P9,600 and fair value of P7,200 and inventory items with a book value of P3,600 and fair value of P4,800. During 2020, Abalos made additional investment of P2,400 on April 1 and P2,400 on June 1, and on September 1, he withdrew P6,000. Bacani had no additional investments nor withdrawals during the year. The average capital balance at the end of 2020 for Abalos is a. P24,000 b. P12,000 P25,200 d. P10,800 debit to Incc Nabua Capit a. P383,40 b. P319,50 c. P426,00 d. P390,50 6. Martinez is trying to decide whether to accept a salary of P60,000 or a salary of P25,000 plus a bonus of 20% of net income after salaries and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be P75,000. What amount of income would be necessary so that Martinez would consider the choices to be equal? a. P175,000 9. Abadiano, balances du Partners red deducting sa residual pro P113,850 Should Abad a. 24,1501 122 CHAPTER 3 PARTNERSHIP OPERATIONS Sie b. P210,000 c. P285,000 d. P310,000 and ring Partners Manipon and Naranja have a profit and loss agreement with the following provisions: salaries of P20,000 and P25,000 for Manipon and Naranja, respectively; a bonus to Manipon of 10% of net income after bonus; and interest of 20% on average capital balances of P40,000 and P50,000 for Manipon and Naranja, respectively. Any remainder is split equally. If the partnership had net income of P88,000, how much should be allocated to Partner Manipon? a. P36,000 b. P44,500 C. P50,000 d. P43,500 ost m's Eing end ing 1ww to ital 8. The partnership contract for Malicdem and Nabua Partnership provided that Malicdem is to receive an annual salary of P426,000, Nabua is to receive an annual salary of P284,000, and the remaining profit or loss is to be divided equally between the two partners, Net income of the Malicdem and Nabua partnership for the year ended December 31, 2020 was P639,000. The closing entry for the net income on December 31, 2020 is a debit to Income Summary for P639,000 and cre ilicdem Capital and Nabua Capital, respectively of a. P383,400 and P255,600 b. P319,500 and P319,500 CP426,000 and P284,000 d. P390,500 and P248,500 9. Abadiano, Balcita, and Cabanalan are partners with average capital balances during 2020 of P414,000, P207,000, and P138,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P103,500 to Abadiano and P69,000 to Cabanalan the residual profit or loss is divided equally. In 2020 the partnership sustained a P113,850 loss before interest and salaries to partners. By what amount should Abadiano's capital account change? a. 24,150 increase any sa the uld 123 / CHA PARTNERSHIP AND CORPORATION ACCOUNTING b. 37,950 decrease c. 120,750 decrease d. 144,900 increase 10. Bagcal and Cabatuan was organized and began operations on March 1, 2020. On that date, Bagcal invested P337,500, and Cabatuan invested computer equipments with current fair values of 405,000. Cabatuan also invested P135,000 cash in the partnership on November 1, 2020, because of its shortage of cash. The partnership contract includes the following remuneration plan: Bagcal Annual salary (recognized as operating expense) P40,500 Annual interest on average capital 10% Remainder Cabatuan P54,000 10% 40% 60% The annual salary was to be withdrawn by each partner in 12 monthly installments. 13 During the year ended February 28, 2021, the partnership had net sales of P1,125,000, cost of goods sold of P630,000, and total operating expenses of P225,000 (including partners' salaries expense but excluding interest on partners' average capital account balances). Each partner made monthly cash drawings in accordance with the partnership contract. 14 What are the capital balances of the partners on February 28, 2021? Barcal Cabatuan a. P486,000 P661,500 b. P445,500 P607,500 C. P526,500 P715,500 d. P405,000 P553,500 11. Dalangin, a partner in the Prayer Partnership, has a 30% participation partnership profits and losses. Dalangin's capital account has a net decrease of P1,080,000 during the calendar year 2020. During 2020, Dalangin withdrew P2,340,000 (charged against this capital account) and contributed CHAPTER 3 PARTNERSHIP OPERATIONS property valued at P450,000 to the partnership. What was the net income of the Dalangin Partnership for year 2020? a. 2,700,000 b. 4,200,000 c. 6,300,000 d: 9,900,000 12. Partners Maramba and Pasac have a profit and loss agreement with the following provisions: salaries of P30,000 and P45,000 for Maramba and Pasac, respectively; a bonus to Maramba of 12% of net income after salaries and bonus; and interest of 10% on average capital balances of P50,000 and P65,000 for Maramba and Pasac, respectively. One-fourth of any remaining profits are allocated to Maramba and the balance to Pasac. If the partnership had net income of P108,600, how much should be allocated to Partner Maramba? a. P43,225 b. P43,816 c. P47,850 d. P65,375 13. In the preceding problem, how much should be allocated to Pasac? a. P43,225 b. P43,816 CP47,850 d. P65,375 14. The income summary of Cabatu and Dacua Partnership for the year ended December 31, 2020 show a net income of P140,000. The capital accounts of the partners for 2020 show the following: 1. Cabatu began the year with a capital balance of P70,000. 2. Dacua began the year with a capital balance of P175,000. 3. On April 1, Cabatu invested additional P26,250 into the partnership 4. On August 1, Dacua invested additional P52,500 into the partnership 5. Throughout 2020, each partner withdrew P700 per week in anticipation of partnership net income. The partners agreed that these withdrawals are not to be included in the computation of average capital balances purposes of income distribution. 125 for PARTNERSHIP AND CORPORATION ACCOUNTING Dacua 10% None Cabatu and Dacua have agreed to distribute partnership net income according to the following plan: Cabatu 10% Interest on average capital balances 25% Bonuses on net income before salaries, but after interest and bonuses Salaries Residual (if positive) Residual (if negative) P43,750 P52,500 70% 30% 50% 50% What are the capital balances of the partners on December 31, 2020? Cabatu Dacua a. P165,900 P294,350 b. P76,650 P205,100 c. P167,650 P296,100 d. P131,250 P259,700 15. On January 2, 2020, BB and PP formed a partnership. BB contributed capital of P175,000 and PP, P25,000. They agreed to share profits and losses 80% and 20%, respectively. PP is the general manager and works in the partnership fulltime and is given a salary of P5,000 a month; an interest of 5% of the beginning capital (of both partner) and a bonus of 15% of net income before the salary, interest and the bonus The profit and loss statement of the partnership for the year ended December 31, 2020 is as follows: Net Sales Cost of goods sold P875,000 700,000 Gross profits Expenses (including the salary, interest and the bonus) Net income P175,000 143.000 P32,000 The amount of bonus to PP in 2020 amounted to: a. 13,304 b. 16,456 c 18,000 d. 20,700 126

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