13QT. The net adjustments - capital in the books of Anne and Betty:a) Anne, P 7,000 net debit, and Betty, P 2,000 net creditb) Anne, P 5,000 net debit, and Betty, P 7,000 net creditc) Anne, P 7,000 net credit, and Betty, P 2,000 net debitd) Anne, P 5,000 net credit, and Betty, P 7,000 net debitQ2: The adjusted capital of Anne and Betty in their respective books:a) Anne, P 65,000; Betty, P 102,000b) Anne, P 63,000; Betty, P 107,000c) Anne, P 77,000; Betty, P 98,000d) Anne, P 77,000; Betty, P 93,000Q3: The additional investment (withdrawal) made by Anne:a) P(6,666.50)b) P (15,000)c) P 3,000d) P 8,377.50Q4: The total assets of the partnership after formation:a) P 212,000b) P 220,333.50c) P 230,000d) P 235,333.50Q5: The total Liabilities of the partnership after formation:a) P 48,000b) P 51,000c) P 54,000d) P 57,000Q6: The total capital of the partnership after formation:a) P 155,000b) P 163,333.50c) P 178,333.50d) P 180,000Q7: The capital balances of Anne and Betty in the partnership balance sheet:a) Anne, P 81,250; Betty, P 72,000b) Anne, P 81,250; Betty, P 75,000c) Anne, P 100,000; Betty, P 75,000d) Anne, P 62,000; Betty, P 93,000 4. On January 1, 2020, Anne, and Betty decided to form a partnership. The firm is to take over the assets andassume liabilities and capital are to be based on net assets transferred after the following adjustments:a.Anne and Betty's inventory is to be valued at P 31,000 and P 22,000, respectively.b.Accounts receivable of P 2,000 in Anne's books and P 1,000 in Betty's books are uncollectible.C.Accrued salaries of P 4,000 to Anne and P 5,000 to Betty are still to be recognized in the books.d.Unused office supplies of Anne amounted to P 5,000 while that of Betty amounted to P 1,500.Unrecorded patent of P 7,000 and prepaid rent of P 4,500 are to be recognized in the books of Anneand Betty, respectively.Anne is to invest or withdraw cash necessary to have a 40% interest in the firm.e.f.Balance sheets for Anne and Betty on January 1, 2020, before adjustments are given below:BettyAnne50,00020,00024,0005,00024,000(3,000)P 120,00031,00026,00032,000PCashAccounts receivableInventoryOffice suppliesEquipmentAccumulated depreciation - equipment20,000(9,000)P 100.000Total assetsAccounts payableCapitalsTotal assetsP 28,00072,000P 100.000P 20,000100,000P 120,000

Partnership means where two or more person comes together to do some common business activity and…

Q1: The net adjustments - capital in the books of Anne and Betty: a) Anne, P 7,000 net debit, and Betty, P 2,000 net credit b) Anne, P 5,000 net debit, and Betty, P 7,000 net credit c) Anne, P 7,000 net credit, and Betty, P 2,000 net debit d) Anne, P 5,000 net credit, and Betty, P 7,000 net debit Q2: The adjusted capital of Anne and Betty in their respective books: a) Anne, P 65,000; Betty, P 102,000 b) Anne, P 63,000; Betty, P 107,000 c) Anne, P 77,000; Betty, P 98,000 d) Anne, P 77,000; Betty, P 93,000 Q3: The additional investment (withdrawal) made by Anne: a) P(6,666.50) b) P (15,000) c) P 3,000 d) P 8,377.50

Q1: The net adjustments - capital in the books of Anne and Betty: a) Anne, P 7,000 net debit, and Betty, P 2,000 net credit b) Anne, P 5,000 net debit, and Betty, P 7,000 net credit c) Anne, P 7,000 net credit, and Betty, P 2,000 net debit d) Anne, P 5,000 net credit, and Betty, P 7,000 net debit Q2: The adjusted capital of Anne and Betty in their respective books: a) Anne, P 65,000; Betty, P 102,000 b) Anne, P 63,000; Betty, P 107,000 c) Anne, P 77,000; Betty, P 98,000 d) Anne, P 77,000; Betty, P 93,000 Q3: The additional investment (withdrawal) made by Anne: a) P(6,666.50) b) P (15,000) c) P 3,000 d) P 8,377.50

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 4PB

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