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
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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