partnership and corporation solman 2011 chapter 1

8/12/2019 Partnership and corporation solman 2011 Chapter 1

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CHAPTER 1

Review of the Accounting Process

E 1-1

1. a. Unearned Rent 90,000

Rent Revenue 90,000

P270,000 x 6/18 = P90,000

No reversing entr

!. "nsuran#e Ex$ense 11,2%0

Pre$aid "nsuran#e 11,2%0

P90,000 x &/2' = P11,2%0

No reversing entr

2. a. Rent Revenue 180,000

Unearned Rent 180,000

P270,000 x 12/18 = P180,000

Unearned Rent 180,000

Rent Revenue 180,000

!. Pre$aid "nsuran#e 78,7%0

"nsuran#e Ex$ense 78,7%0

P90,000 x 21/2' = P78,7%0

"nsuran#e Ex$ense 78,7%0

Pre$aid "nsuran#e 78,7%0

E 1-21. a. "nterest Ex$ense 100,000

"nterest Paa!(e 100,000

P2,000,000 x 6) x 10/12 = P100,000

!. Pre$aid "nsuran#e 60,000

"nsuran#e Ex$ense 60,000

P72,000 x &0/&6 = P60,000

#. Pre$aid Rent 2'0,000

Rent Ex$ense 2'0,000

P&60,000 x 8/12 = P2'0,000

d. Un#o((e#ti!(e *##ounts Ex$ense 6,000

*((o+an#e or Un#o((e#ti!(e *##ounts 6,000

e. a(ar Ex$ense 60,000

a(aries Paa!(e 60,000

P1%0,000 x 2/% = P60,000



Chapter 2 – Suggested Answers (APC-2011) page 2

. e$re#iation Ex$ense i#e Eui$ent 11',000

*##uu(ated e$re#iation i#e Eui$ent 11',000

P'80,000 ÷ % =P96,000 3

P120,000 ÷ % x 9/12 = P18,000

g. u$$(ies on 4and &,%00

u$$(ies Ex$ense &,%00

5. Renta( Revenue '0,000Unearned Rent '0,000

P60,000 x '/6 P'0,000

i. "n#oe uar 100,000

er#5andise "nventor 100,000

er#5andise "nventor 120,000

"n#oe uar 120,000

2. a, !, #, e, g 5

E 1-&

1. a. "n#oe uar %0,000

"nventor, !eg. %0,000

"nventor, end 1'0,000

"n#oe uar 1'0,000

!. "nventor, end 1'0,000

Pur#5ases Returns 20,000

ost o oods o(d 2,000,000

Pur#5ases 2,100,000:reig5t-in 10,000

"nventor, !eg. %0,000

2. *$$roa#5 2

a. a(es %,000,000

"nterest Revenue 2%,000

"n#oe uar %,02%,000

!. "n#oe uar 2,980,000

ost o oods o(d 2,000,000

*dinistrative Ex$ense %00,000

a(es Returns %,000a(es is#ounts 10,000

e((ing Ex$enses '%0,000

"nterest Ex$ense 1%,000

#. "n#oe uar 2,0'%,000

astro, a$ita( 2,0'%0,000




d. astro, a$ita( %00,000

astro, ra+ing %00,000

E 1-'

1. *((o+an#e or Un#o((e#ti!(e *##ounts2. Rent Ex$ense

&. i#e u$$(ies Ex$ense'. a(aries Paa!(e

%. Pre$aid "nsuran#e

6. "nterest Revenue

7. "nterest Paa!(e

8. Unearned Rent

9. *##uu(ated e$re#iation

10. "n#oe uar

E 1-%

1. * 6. ; or 11. ; 16. ;

2. * 7. * 12. * 17. *&. * 8. 1&. * 18.

'. * 9. * 1'. * 19. ;

%. ; 10. ; 1%. 20. ;

P 1-1

1. a. Pre$aid "nsuran#e 66,000

"nsuran#e Ex$ense 66,000 P72,000 x &&/&6 = P66,000


Pre$aid "nsuran#e 66,000

! Unearned Rent &0,000

Rent Revenue &0,000

P1&%,000 x 2/9

no reversing entr

#. u$$(ies Ex$ense 9,000

u$$(ies 9,000

P12,000 P&,000 = P9,000

no reversing entr

d. e$re#iation Ex$ense 11,2%0*##uu(ated e$re#iation 11,2%0

P1%0,000/10 x 9/12< = P11,2%0

no reversing entr




e. Un#o((e#ti!(e *##ounts Ex$ense 7,%00

*((o+an#e or Un#o((e#ti!(e *##ounts 7,%00

no reversing entr

. "nterest Re#eiva!(e %00"nterest Revenue %00

P%0,000 x 12) x &0/&60 = P%00

"nterest Revenue %00

"nterest Re#eiva!(e %00

g. a(ar Ex$ense 1%,000

a(aries Paa!(e 1%,000

a(aries Paa!(e 1%,000

a(ar Ex$ense 1%,000

5. er#5andise "nventor 120,000

"n#oe uar 120,000

P 1-2a. "n#oe uar '0,000

er#5andise "nventor '0,000

!. er#5andise "nventor %0,000

"n#oe uar %0,000

#. a(es 1,900,000

Pur#5ase Returns *((o+an#e &0,000"n#oe uar 1,9&0,000

d. "n#oe uar 1,&'&,000

a(es Returns and *((o+an#e %0,000

Pur#5ases 1,000,000

:reig5t-in '0,000

u$$(ies Ex$ense 6,000


a(ar Ex$ense 180,000

e$re#iation Ex$ense 8,000i#e Ex$ense %0,000

e. "n#oe uar %97,000

(son, a$ita( %97,000

. (son, a$ita( 60,000

(son, ra+ing 60,000




P 1-&

Adjusting Income Statement Statement of Financial Position

Entr Revenue E!"enses #et Income Assets $ia%ilities Ca"ital

a. NE 3 - NE 3 -

!. 3 NE 3 3 NE 3#. NE 3 - - NE -

d. NE 3 - - NE -

e. NE 3 - - NE -

. 3 NE 3 NE - 3

g. NE 3 - NE 3 -

P 1-'

1. a. oissions Re#eiva!(e 7,200

oissions "n#oe 7,200

!. Rent Ex$ense &6,000

Pre$aid Rent &6,000

#. i#e u$$(ies Ex$ense 6,600

i#e u$$(ies 6,600

d. e$re#iation Ex$ense

*##uu(ated e$re#iation 2,'00

2,'00

e. a(aries Ex$ense ',800

a(aries Paa!(e ',800

. Unearned oissions 8,000

oissions "n#oe 8,000

g. "nterest Ex$ense 1,200

"nterest Paa!(e 1,200

2. a. "n#oe uar 111,000

a(aries Ex$ense 6',800

Rent Ex$ense &6,000

i#e u$$(ies Ex$ense 6,600

e$re#iation Ex$ense i#e Eui$ent 2,'00

"nterest Ex$ense 1,200

!. oissions "n#oe 17%,200"n#oe uar 17%,200

#. "n#oe uar 6',200

a(de>, a$ita( 6',200

d. a(de>, a$ita( &2,000

a(de>, ra+ing &2,000




&. Net "n#oe = P6',200

P 1-%

1. "nsuran#e Ex$ense &0,000

Pre$aid "nsuran#e &0,000

2. e$re#iation Ex$ense i#e Eui$ent 7%,000

e$re#iation Ex$ense *utoo!i(e 260,000*##uu(ated e$re#iation i#e Eui$ent 7%,000

*##uu(ated e$re#iation - *utoo!i(e 260,000

&. Unearned anageent :ees 80,000

anageent :ees Earned 80,000

P120,000 x '/6 = P80,000

'. Pre$aid *dvertising '0,000

*dvertising Ex$ense '0,000

P100,000 x 2/% = P'0,000

&ulti"le Choice1. '. 7. 10. ; 1&. ;

2. %. ; 8. ; 11. * 1'. *

&. 6. 9. 12. ; 1%. *

? 11. ? 6. ? 11. : 16. : 21. ?

2. : 7. : 12. : 17. ? 22. ?

&. ? 8. : 1&. : 18. : 2&. ?

'. : 9. ? 1'. : 19. : 2'. :

%. : 10. ? 1%. ? 20. ? 2%. ?

? 2

1. 6. ; 11. ; 16. ;2. 7. 12. * 17.

&. 8. 1&. 18.

'. ; 9. ; 1'. 19. ;

%. * 10. * 1%. 20.

? &1. ; 6. 11. * 16. * 21. ;

2. 7. 12. 17. 22.

&. 8. 1&. * 18. * 2&. *

'. 9. * 1'. 19. 2'.

%. ; 10. 1%. 20. 2%. ;

? '1. '. 7. * 10. 1&. *

2. %. ; 8. 11. * 1'. *

&. E 6. * 9. 12. E 1%. *

? %1. 6. : 11. P 16. @

2. ; 7. E 12. ? 17.

&. 4 8. * 1&. 18. A

'. N 9. " 1'. 19.




%. B 10. C 1%. D 20.

partnership and corporation solman 2011 chapter 1

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