ADVANCED ACCOUNTING GUERRERO PERALTA VOLUME 1 SOLUTION MANUAL LATEST UPDATE

ADVANCED ACCOUNTING GUERRERO PERALTA
VOLUME 1 SOLUTION MANUAL LATEST UPDATE

CHAPTER 1
MULTIPLE CHOICE ANSWERS AND SOLUTIONS
1-1: A

Jose's Capital Should Be Credited For The Market Value Of The Computer Contributed By Him.

1-2: B

60,000.

1-3: A

Cash

P100,000

Land 300,000

Mortgage Payable ( 50,000)

Net Assets (Julio, Capital) P350,000

1-4: B

Total Capital (P300,000/60%)

P500,000

Perla's Interest 40%

Perla's Capital P200,000

Less:Non-Cash Asset Contributed At Market Value

Land P 70,000

Building 90,000

Mortgage Payable ( 40,000) _120,000

Cash Contribution P 80,000



1-5: D - Zero, Because Under The Bonus Method, A Transfer Of Capital Is Only Required.

,1-6: B

Reyes Santos

Cash P200,000 P300,000

Inventory – 150,000

Building

Equipment – 150,000 400,000

Mortgage Payable ( 100,000)

Net Asset (Capital) P350,000 P750,000

1-7: C

AA

BB

CC

Cash

Property At Market Value P 50,000

P 80,000

Mortgage Payable Equipment At Market Value

( 35,000)



P55,000

Capital P 50,000 P 45,000 P55,000

,Downloaded By Anne Rapanut ()



2 Chapter

1



1-8:

A




PP




RR




SS

Cash P 50,000 P 80,000 P 25,000

Computer At Market Value 25,000 60,000

Capital P 75,000 P 80,000 P 85,000

1-9: C

Maria

Nora

, Cash

Merchandise Inventory P 30,000

P 90,000

Computer Equipment 160,000

Liability ( 60,000)

Furniture And Fixtures 200,000

Total Contribution P230,000 P190,000

Total Agreed Capital (P230,000/40%) P575,000

Nora's Interest 60%

Nora's Agreed Capital P345,000

Less: Investment 190,000

Cash To Be Invested P155,000

1-10: D

Roy

Sam

Tim

Cash

Office Equipment Note Payable P140,000

–

– P220,000

_( 60,000) –

–



Net Asset Invested P140,000 P160,000 P –

Agreed Capitals, Equally (P300,000/3) = P100,000

1-11: A

Lara

Mitra

Cash P130,000 P200,000