FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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PROBLEM SOLVING:
1
On January 1, 2017, Angel, Bea and Colleen formed ABC & Co., a general professional partnership for the
exercise of their common profession. Angel contributed a building with cost of P5M and accumulated
depreciation of P4M. Based on the city assessor's records, the building has an assessed value of P 2M
The building has an annotated mortgage payable amount to P 500,000 to be assumed by the partnership.
On the other hand, Bea contributed 10,000 shares of stocks with par value of P200/per share and
prevailing quoted price of P 300/share. On January 2, 2017, the building contributed by Angel was sold
for P5.5M.
If Colleen wants to have 20% capital interest in the newly formed partnership, how much shall be
contributed by her?
P 875,000
b. P 1,125,000
C P 2,125,000
d. P 2,000,000
a
2 On July 1, 2016, Anne, Bianca, and Carla formed a business partnership to be operated as an advertising
agency. Anne contributed P10M cash while Bianca shall have a capital credit of P6M upon receipt of
bonus of P1M from Anne based on the provision in Articles of Co-Partnership. The terms of the agreement
provides that Anne and Bianca shall have a combined40% capital inters in the newly formed partnership
What is the capital contribution made by Carla to the partnership?
P 24,000,000
b. P 22,500,000
P 25,000,000
d. P 32,000,000
a
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Transcribed Image Text:PROBLEM SOLVING: 1 On January 1, 2017, Angel, Bea and Colleen formed ABC & Co., a general professional partnership for the exercise of their common profession. Angel contributed a building with cost of P5M and accumulated depreciation of P4M. Based on the city assessor's records, the building has an assessed value of P 2M The building has an annotated mortgage payable amount to P 500,000 to be assumed by the partnership. On the other hand, Bea contributed 10,000 shares of stocks with par value of P200/per share and prevailing quoted price of P 300/share. On January 2, 2017, the building contributed by Angel was sold for P5.5M. If Colleen wants to have 20% capital interest in the newly formed partnership, how much shall be contributed by her? P 875,000 b. P 1,125,000 C P 2,125,000 d. P 2,000,000 a 2 On July 1, 2016, Anne, Bianca, and Carla formed a business partnership to be operated as an advertising agency. Anne contributed P10M cash while Bianca shall have a capital credit of P6M upon receipt of bonus of P1M from Anne based on the provision in Articles of Co-Partnership. The terms of the agreement provides that Anne and Bianca shall have a combined40% capital inters in the newly formed partnership What is the capital contribution made by Carla to the partnership? P 24,000,000 b. P 22,500,000 P 25,000,000 d. P 32,000,000 a
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