Reference no: EM133130203
PROBLEM 1 - On July 5, 2022, the capital balances of Jacey, Jersey and Jia are as follows:
Jacey P400,000
Jersey P600,000
Jia P800,000
Jacey, Jersey, and Jia share profits and losses in the ratio 3: 5: 2, respectively. On the same date, Joni was admitted into the partnership by investing enough cash to give her 25% interest in the partnership capital. Her contribution comprises of a unit of equipment that had a carrying amount and fair value of P360,000 and P240,000, respectively and cash.
1. Determine Joni's cash contribution.
PROBLEM 2 - The following pieces of information were taken from the records of RST Pharmacy as of November 3:
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Partner
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Profit or Loss ratio
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Capital Balance
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Russel
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20%
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P200,000
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Sabra
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30%
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P400,000
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Taja
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50%
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P600,000
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On this date, Ulysses was admitted into the partnership, investing P300,000 for a 15% interest in the firm.
2. Compute for Taja's capital balance after Ulysses's admission.
PROBLEM 3 - The condensed statement of financial position of ABC Partnership is as follows:
Cash P20,000
Non-cash Assets P580,000
Liabilities P100,000
Andrea, capital P150,000
Barry, capital P100,000
Callen, capital P250,000
Andrea, Barry and Callen share in profit and loss at 2: 3: 5, respectively. The partners have decided to liquidate the company. The noncash assets were realized at P500,000.
3. How much did Callen receive during liquidation?
PROBLEM 4 - On September 1, 2022, after closing the books for the final time, MM & Co. decided to liquidate their partnership.
The partnership has the following accounts right before it was liquidated:
Cash P50,000
Non-cash Assets P450,000
Receivable from Maddy P15,000
Liabilities P200,000
Payable to McKenna P20,000
Maddy, Capital P155,000
McKenna, Capital P140,000
When the non-cash assets were sold, Maddy's capital decreased by P135,000. Maddy and McKenna share profits and losses in the ratio 3: 2, respectively
4. Determine the selling price of the non-cash assets.
5. Determine the amount received by McKenna.
PROBLEM 5 - Core's shares have the following accounts and balances in 2022:
8% Preference share capital, P20 par P1,000,000
Ordinary share capital, P5 par P4,000,000
Core declared dividends worth P2,400,000. Core last declared and paid dividends in 2018.
6. How much is the dividend per ordinary share if the preference shares are cumulative and nonparticipating?
7. How much is the dividend per ordinary share if the preference shares are noncumulative and participating?
PROBLEM 6 - The shareholders' equity of Denmark Corp. at the beginning of 2022 shows the following accounts and balances:
Preference share capital, P50 par P3,000,000
Ordinary share capital, P10 par P5,000,000
Share premium - preference P2,000,000
Share premium - ordinary P8,000,000
Share premium - treasury P120,000
Retained earnings P2,000,000
On February 1, Denmark reacquired 50,000 of its own ordinary shares. The next month, 80% of them were reissued at P37 per share, decreasing the retained earnings account by P200,000.
8. Determine the cost of each treasury share.
PROBLEM 7 - On January 1, 2021, Hightower Corp. has 2,800,000, P2 par ordinary shares issued, 400,000 of which are held by the entity as treasury shares. On February 1, 2021, Hightower declared a 10% share dividend on all of its outstanding shares. On March 15, half of the treasury shares were reissued. On April 30, the entity declared a 25% share dividend. On June 30, Hightower declared a P3 cash dividend on all of its outstanding shares.
9. How many shares are entitled to receive the dividends declared on June 30?
PROBLEM 8 - On July 1, 2022, Huff Co. has 100,000, P20 par, 10% preference shares and 1,500,000, P2 par ordinary shares issued and outstanding. The preference shares are cumulative and participating, and Huff last declared and paid dividends in 2019. On this date, the entity decided to declare enough dividends such that each ordinary share will receive P1.
10. How much is the total dividends that Huff should declare?