1. Prepare the journal entry to record the investment of both partners in the partnership. 2. Determine the share of profit for each partner in 2018 and 2019 under each of the following conditions: a. The partners agreed to share profit equally. b. The partners failed to agree on a profit-sharing arrangement. c. The partners agreed to share profit according to the ratio of their original investments. d. The partners agreed to share profits by allowing interest of 10% on their original investments and dividing the remainder equally. e. The partners agreed to share profits by allowing salaries of P400,000 for Marasigan and P280,000 for Asacta, and dividing the remainder equally. f. The partners agreed to share profits by paying salaries of P400,000 to Marasigan and P280,000 to Asacta, allowing interest of 9% on their original investments, and dividing the remainder equally.
In January 2018, Nick Marasigan and Dems Asacta agreed to purchase and sell chocolate candies. Marasigan contributed P2,400,000 in cash to the business. Asacta contributed the building and equipment, valued at P 2,200,000 and P 1,400,000, respectively. The
Required:
1. Prepare the
2. Determine the share of profit for each partner in 2018 and 2019 under each of the following conditions:
a. The partners agreed to share profit equally.
b. The partners failed to agree on a profit-sharing arrangement.
c. The partners agreed to share profit according to the ratio of their original investments.
d. The partners agreed to share profits by allowing interest of 10% on their original investments and dividing the remainder equally.
e. The partners agreed to share profits by allowing salaries of P400,000 for Marasigan and P280,000 for Asacta, and dividing the remainder equally.
f. The partners agreed to share profits by paying salaries of P400,000 to Marasigan and P280,000 to Asacta, allowing interest of 9% on their original investments, and dividing the remainder equally.
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