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This document provides information to record the formation of a partnership between Romina Mondragon and Camilla dela Torre called Golden Bakeshop. It includes the individual balance sheets of Romina and Camilla that need to be adjusted to appraised values. The partners agreed to share assets and profits equally and contribute a total capital of P120,000. Journal entries are required to record the capital contributions and additional cash investment. An alternative third journal entry is also requested assuming the agreed capitalization is P150,000 with recognition of an intangible asset.

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206 views6 pages

Activity-A With Answers

This document provides information to record the formation of a partnership between Romina Mondragon and Camilla dela Torre called Golden Bakeshop. It includes the individual balance sheets of Romina and Camilla that need to be adjusted to appraised values. The partners agreed to share assets and profits equally and contribute a total capital of P120,000. Journal entries are required to record the capital contributions and additional cash investment. An alternative third journal entry is also requested assuming the agreed capitalization is P150,000 with recognition of an intangible asset.

Uploaded by

Renz Titong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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ACTG22: Partnership and Corporation Accounting

Removal Exam #1

Name: ______________________________ Date: ________________________


Course & Section: ____________________

I.
Oct 1 Elsa Molina made a cash investment of P350,000 to establish the Manok na Pula Enercon
Service, a maker of energy conservation gadgets.
3 Liberty Bautista joined Elsa in the business by investing machinery and equipment with
an invoice price of P500,000 bought on terms of 2/10, n/30.
5 Karissa Cortez invested her land and building with appraised values of P200,000 and P300,000
respectively. This was bought last year at a cost price of P150,000 and P500,000 with an
accumulated depreciation of P100,000.
10 Admitted Nuna Kinis, who is an energy inventor, to act as supervisor for a 20% share in
the profit.

Nov 30 Cash withdrawals were made by Cortez P5,000 and Bautista P10,000.

Dec 1 Kinis extended a P15,000 loan to the partnership which issued a 30 day 18% note.
15 Molina made an additional cash investment of P150,000.
31 Service income of the business amounted to P375,000 and operating expenses were
P195,000. Profits are to be divided equally by the partners after considering Paul's share.

Post the above transaction using the T-accounts below and prepare a statement of changes in
partners' equity:

Molina, Capital Molina, Drawing


350,000 Oct-01
150,000 Dec-15
47,940 Dec-31
547,940

Bautista, Capital Bautista, Drawing


Dec-31 10,000 490,000 Oct-03 Nov-30 10,000 10,000
47,940 Dec-31
10,000 537,940
527,940

Cortez, Capital Cortez, Drawing


Dec-31 5000 500,000 Oct-05 Nov-30 5,000 5,000
47,940 Dec-31
5,000 547,940
542,940
Kinis, Capital Kinis, Drawing
35,955 Dec-31

Loan Payable to Kinis


15,000 Dec-01

Manok na Pula Enercon Service


Statement of Changes in Partners Equity
Dec-31

Molina Bautista Cortez Kinis Total

Investment 350,000 490,000 500,000 0 1,340,000

add: income 47,940 47,940 47,940 35,955 179,775

add: additional investment 150,000 0 150,000

less: drawings 0 10,000 5000 15,000

capital: Dec 31 547,940 527,940 542,940 35,955 1,654,775


on

300,000
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Dec-31

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Dec-31
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ACTG22: Partnership and Corporation Accounting
Removal Exam #2

Name: __________________________________ Date: _______________________


Course & Section: ________________________

Romina Mondragon and Camilla dela Torre who have been in business as single proprietors, decided
to combine all of their business assets and liabilities in a new partnership to be called Golden Bakeshop.
Balance sheet accounts of the two individuals on the date of the formation of the partnership,
September 4, 2017, are shown below:

Romina: Per Books As Adjusted


Cash ₱ 18,000.00 18,000
Accounts Recievable, net of P1,000 allowance 30,000.00 29,000
Merchandise Inventory 18,000.00 17,000
Equipment, net of P5,000 accumulated depreciation 40,000.00 30,000
Accounts Payable 46,000.00 46,000
Mondragon, Capital 48,000.00

Camilla:
Cash ₱ 43,000.00 43,000
Accounts Recievable, net of P6,000 allowance 34,000.00 30,000
Merchandise Inventory 40,000.00 30,000
Accounts Payable 44,000.00 44,000
dela Torre, Capital 59,000.00

An appraisal of the assets showed market values for the assets of Mondragon as follows: Accounts
receivable P29,000; merchandise inventory P17,000; and equipment P30,000. A similar appraisal placed
the following market values on dela Torre's assets: accounts receivable P30,000; and merchandise inventory
P30,000. Since they agreed to share equally in the assets and profits, additional cash investment should
be made so that their capital contributions will be a total of P120,000.

Direction:
a.) Prepare 2 journal entries to record the capital contributions of Romina and Camilla in the partnership
books after adjusting the accounts in their balance sheets.
A column showing adjusted contribution is provided for you to fill up to facilitate the preparation of the
investment entries. Prepare a third entry to record the additional cash investment.
b.) Change the third entry in a.) above assuming instead that the agreed capitalization is P150,000 with an
intangible asset to be recognized.
ed
eshop.

107,000.00

placed
inventory
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ership

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