APC ch2sol

CHAPTER 2
Nature and Formation of a Partnership

E 2-1
a.
Cash
400,000

Alonzo, Capital

400,000

b.
Accounts Receivable
500,000

Allowance for Uncollectible Accounts

50,000

Alonzo, Capital

450,000

c.
Inventories
240,000

Alonzo, Capital

240,000

P300,000 x 80% = P240,000

d.
Equipment
540,000

Alonzo, Capital

540,000

P900,000 x 6/10 = P540,000

E 2-2
1.
Cash
450,000

Accounts Receivable
180,000

Merchandise Inventory
270,000

Equipment
125,000

Allowance for Uncollectible Accounts

10,000

Accounts Payable

105,000

Notes Payable

90,000

Aquino, Capital

820,000

2.
Cash
520,000

Asuncion, Capital

520,000

E 2-3
1.
a.
Amores, Capital
23,000

Allowance for Uncollectible Accounts

23,000

b.
Merchandise Inventory
176,000

Amores, Capital

176,000

c.
Prepaid Expenses
72,000

Accounts Payable

32,000

Amores, Capital

40,000

d.
Cash
902,500

Andrada, Capital

902,500

(P1,612,000 – P23,000 + P176,000 + P40,000 = P1,805,000  2/3 x 1/3 = P902,500)

2.
a.
Cash
208,000

Accounts Receivable
460,000

Merchandise Inventory
1,616,000

Prepaid Expenses
72,000

Allowance for Uncollectible Accounts

23,000

Accounts Payable

528,000

Amores, Capital

1,805,000

b.
Cash
902,500

Andrada, Capital

902,500

Amores and Andrada Company
Statement of Financial Position
January 1, 2009

Assets
Cash

P1,110,500
Accounts Receivable
P460,000

Less Allowance for Uncollectible Accounts 23,000
437,000
Merchandise Inventory

1,616,000
Prepaid Expenses

72,000
Total Assets

P3,235,500

Liabilities and Capital
Accounts Payable

P528,000
Amores, Capital
P1,805,000

Andrada, Capital 902,500 2,707,500
Total Liabilities and Capital