Based on the above information, kindly answer the following: 1. In the profit distribution schedule, the salary allowance of Tom will be? 2. Of the P1,404,000 net profit of the partnership, the share of Rey will be? 3. In the profit distribution schedule, the total salary allowance will be? Please answer complete required1,2,3
Based on the above information, kindly answer the following: 1. In the profit distribution schedule, the salary allowance of Tom will be? 2. Of the P1,404,000 net profit of the partnership, the share of Rey will be? 3. In the profit distribution schedule, the total salary allowance will be? Please answer complete required1,2,3
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 55P
Related questions
Question
Based on the above information, kindly answer the following:
1. In the profit distribution schedule, the salary allowance of Tom will be?
2. Of the P1,404,000 net profit of the partnership, the share of Rey will be?
3. In the profit distribution schedule, the total salary allowance will be? Please answer complete required1,2,3
Transcribed Image Text:Rey and Tom Partnership was organized and began operations on March 1, 2020. On
that date, Rey invested P950,000 and Tom invested machinery and equipment with
current fair value of P800,00o. Because of shortage of cash, on November 1, 2020
Tom invested additional cash of P200,000 in the partnership. The partnership
contract includes the following remuneration plan:
Rey
Tom
Monthly Salary (recognized as expense)
P20,000
P25,000
Annual interest on beginning capital
12%
12%
Bonus on the net profit before salaries and interest but after bonus
4%
Balance
45%
55%
The salary was to be withdrawn by each partner in monthly installments. The partnership's net profit for 2020 is
P1,404,000.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 1 images
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College