Q3 – FINANCIAL ACCOUNTING AND REPORTING (PARTNERSHIP ACCOUNTING) ALL ABOUT PARTNERSHIP DISSOLUTION

NAME: ___________________________________________ YEAR/COURSE: ______________________________ SCORE: ___________________ RATING: ___________________

PROBLEM 1 PROBLEM 3
Marietta, Julio and Rosalina are partners sharing profits in the ratio of 3:3:2. On June 30, their In the DoReMi Partnership, Donna’s capital is P 50,000, Regine’s is P 30,000 and Mikee’s is
capital balances are as follows: P40,000. They share income in a 3:1:1 ratio. Mikee is retiring from the partnership.

Marietta P 600,000
Julio 400,000
Rosalina 300,000
The partners agreed to admit Manny on the following agreement:
1. Manny is to pay P 400,000 to Marietta for ½ interest of Marietta’s capital interest.
2. Manny is also to invest P 300,000 in the partnership.
3. The total partnership capital is to be P 2,000,000, of which Manny’s interest is to be 25%.
Required:
1. Adjusting entries to record the admission of Manny
2. Capital balance of Marietta after admission of Manny
3. Capital balance of Julio after admission of Manny
4. Capital balance of Rosalina after Manny’s admission
5. Capital balance of Manny after all the adjustments
PROBLEM 2
The following condensed statement of financial position is presented for the partnership of
Pro, Bin, and Syano, who share profits and losses in the ratio of 4:3:3, respectively.
Required: Prepare journal entries to record Mikee’s withdrawal according to each of the
following independent assumptions:
11. Mikee is paid P48,000, and no goodwill is recorded.
12. Mikee is paid P50,000, and only his share of the goodwill is recorded.
13. Mikee is paid P40,000, and implied goodwill is recorded.
PROBLEM 4
Cornelia, Sheila and Elda were partners with capital balances on January 2, 2013 of
P100,000, P150,000 and P200,000, respectively. Their profit and loss ratio is 5:3:2. On July 1,
2013, Cornelia retires from the partnership. On the date of retirement, the partnership net
income is P140,000 and the partners agreed that inventories are to be revalued at P70,000
from its original cost of P50,000. The partners agreed to pay Cornelia P195,000 in settlement
of her interest.
Required:
14. Entry to record the revaluation and distribution of net income
15. Capital balance of Sheila after Cornelia’s retirement
16. Capital balance of Elda after Cornelia’s retirement
17. Entry to record the retirement of Cornelia

Cash P 40,000 Accounts Payable P 150,000 ENUMERATION

Other Assets 710,000 Pro, Capital 260,000 Partnership is dissolved because:
Bin, Capital 180,000 18. ________________________________
Syano, Capital 160,000 19. ________________________________
750,000 750,000 20. ________________________________
21. ________________________________
Assume that the partnership decides to admit Ang as a new partner with a one-fourth interest.
DISCUSSION
Required: For each of the following cases, determine the amount that Ang must contribute in Differentiate DISSOLUTION from LIQUIDATION. (10 POINTS)
cash or other assets.
6. No goodwill or bonus is to be recorded. BONUS QUESTION
7. Goodwill of P30,000 is to be recorded and allocated to old partners. 1. Full name of the OIC of Accountancy Department
8. A bonus of P24,000 is to be paid by Ang and allocated to old partners. 2. Full name of your professor in Financial Accounting and Reporting
9. The old partners agree to give Ang P10,000 of goodwill upon admission into partnership.
10. The partners agree that total resulting capital should be P820,000 and no goodwill should RULES: 2 POINTS (with first name, middle name and last name)
be recognized. 1 POINT (with first name and last name only)
,5 POINT (only first name or only last name)

GOOD LUCK!!!
Q2 – STRATEGIC COST MANAGEMENT (MANAGEMENT ACCOUNTING 1) ALL ABOUT STANDARD COSTING (ANALYZING VARIANCES)

NAME: ___________________________________________ YEAR/COURSE: ______________________________ SCORE: ___________________ RATING: ___________________

IDENTIFICATION Required:
1. A cost that fluctuates with large changes in level of activity 9-12. What is the application rate per direct labor hour, the total overhead cost equation, the
2. A range of activity over which costs behave as predicted standard quantity for each material, and the standard hours?
3. The capacity level at which a firm believes it will operate at during the coming production 13-19. Compute the following variances:
cycle a. Total material price variance
4. The difference between actual variable overhead and budgeted variable overhead based b. Total material quantity variance
on inputs c. Labor rate variance
5. The difference between total actual overhead and total applied overhead d. Labor efficiency variance
6. The difference between total budgeted overhead based on inputs and applied overhead e. MOH volume variance
7. The difference between total actual overhead and total budgeted overhead based on output f. MOH efficiency variance
8. The difference between actual fixed overhead and budgeted fixed overhead g. MOH spending variance, both fixed and variable

PROBLEM 1 PROBLEM 2
BoomPanes Company manufactures a product effective in controlling beetles. The company The following information is available for Jowable Company for the current year:
uses a standard cost system and a flexible budget. Standard cost of a gallon is as follows: Standard:
Material J: 3.0 pounds per unit @ $4.20 per pound
Direct material: Material K: 4.5 pounds per unit @ $3.30 per pound
2 quarts of B $14 Class J labor: 3 hours per unit @ $10.50 per hour
4 quarts of P 16 Class JK labor: 7 hours per unit @ $8.00 per hour
Total direct material $30
Direct labor: Actual:
2 hours 16 Material J: 3.6 pounds per unit @ $4.00 per pound (purchased and used)
Manufacturing overhead 12 Material K: 4.4 pounds per unit @ $3.25 per pound (purchased and used)
Total $58 Class J labor: 3.8 hours per unit @ $10.60 per hour
Class JK labor: 5.7 hours per unit @ $7.80 per hour
The flexible budget system provides for $50,000 of fixed overhead at normal capacity of
10,000 direct labor hours. Variable overhead is projected at $1 per direct labor hour. Jowable Company produced a total of 45,750 units.

Actual results for the period indicated the following: 20-22. Compute the material price, mix, and yield variances (round to the nearest dollar).
23-25. Compute the labor rate, mix, and yield variances. (round to the nearest dollar).
Production: 5,000 gallons
TRUE OR FALSE
Direct material: 26. The effect of substituting a non-standard mix of materials during the production process is
B 12,000 quarts purchased at a cost of $7.20/quart; 10,500 quarts used referred to as a material yield variance.
P 20,000 quarts purchased at a cost of $3.90/quart; 19,800 quarts used 27. When multiple labor categories are used, the financial effect of using a different mix of
Direct labor: 9,800 hours worked at a cost of $79,380 workers in a production process is referred to as a labor mix variance.
Overhead: 28. When multiple labor categories are used, the financial effect of using a different mix of
Fixed $48,100 workers in a production process is referred to as a labor yield variance.
Variable 21,000 29. When multiple labor categories are used, the monetary impact of using a higher or lower
Total overhead $69,100 number of hours than a standard allows is referred to as a labor mix variance.
30. When multiple labor categories are used, the monetary impact of using a higher or lower
number of hours than a standard allows is referred to as a labor yield variance.
GOOD LUCK!!!
Q2 – CONCEPTUAL FRAMEWORK AND ACCOUNTING STANDARDS

NAME: ___________________________________________ YEAR/COURSE: ______________________________ SCORE: ___________________ RATING: ___________________