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
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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13
QT. 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
Q4: The total assets of the partnership after formation:
a) P 212,000
b) P 220,333.50
c) P 230,000
d) P 235,333.50
Q5: The total Liabilities of the partnership after formation:
a) P 48,000
b) P 51,000
c) P 54,000
d) P 57,000
Q6: The total capital of the partnership after formation:
a) P 155,000
b) P 163,333.50
c) P 178,333.50
d) P 180,000
Q7: The capital balances of Anne and Betty in the partnership balance sheet:
a) Anne, P 81,250; Betty, P 72,000
b) Anne, P 81,250; Betty, P 75,000
c) Anne, P 100,000; Betty, P 75,000
d) Anne, P 62,000; Betty, P 93,000
Transcribed Image Text:13 QT. 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 Q4: The total assets of the partnership after formation: a) P 212,000 b) P 220,333.50 c) P 230,000 d) P 235,333.50 Q5: The total Liabilities of the partnership after formation: a) P 48,000 b) P 51,000 c) P 54,000 d) P 57,000 Q6: The total capital of the partnership after formation: a) P 155,000 b) P 163,333.50 c) P 178,333.50 d) P 180,000 Q7: The capital balances of Anne and Betty in the partnership balance sheet: a) Anne, P 81,250; Betty, P 72,000 b) Anne, P 81,250; Betty, P 75,000 c) Anne, P 100,000; Betty, P 75,000 d) 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 and
assume 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 Anne
and 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:
Betty
Anne
50,000
20,000
24,000
5,000
24,000
(3,000)
P 120,000
31,000
26,000
32,000
P
Cash
Accounts receivable
Inventory
Office supplies
Equipment
Accumulated depreciation - equipment
20,000
(9,000)
P 100.000
Total assets
Accounts payable
Capitals
Total assets
P 28,000
72,000
P 100.000
P 20,000
100,000
P 120,000
Transcribed Image Text:4. On January 1, 2020, Anne, and Betty decided to form a partnership. The firm is to take over the assets and assume 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 Anne and 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: Betty Anne 50,000 20,000 24,000 5,000 24,000 (3,000) P 120,000 31,000 26,000 32,000 P Cash Accounts receivable Inventory Office supplies Equipment Accumulated depreciation - equipment 20,000 (9,000) P 100.000 Total assets Accounts payable Capitals Total assets P 28,000 72,000 P 100.000 P 20,000 100,000 P 120,000
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