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The following information pertained to T. Lianza Corporation: Dividends on its 1,000 shares of 6%, P10 par value cumulative preference shares have not been declared

The following information pertained to T. Lianza Corporation: Dividends on its 1,000 shares of 6%, P10 par value cumulative preference shares have not been declared for three years. Treasury stock that costs P15,000 was reissued for P8,000What amount of retained earnings should be appropriated as a result of these items?*

a P7,000

b P8,800

c P1,800

d P0

On March 1, 2012, Santos and Pablo formed a partnership with each contributing the following assets. Santos has the following Cash 30,000 Machinery and equipment 25,000 and Furniture and Fixture 10,000. Pablo contributed Cash 70,000; Machinery and equipment 75,000 and Building worth 225,000. The building is subject to a mortgage loan of P80,000, which is to be assumed by the partnership. The partnership agreement provides that Santos and Pablo share profits and losses 30% and 70% respectively. What is the balance in Pablo's capital account?*

A 895,000

B 145,000

C 290,000

D 370,000

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