below: Cash P96,000 Accounts Payable P178,000 Accounts Receivable 184,000 Annie Capital 266,000 Inventory 330,000 Betty Capital 216,000 Equipment-net 50,000 Total P660,000 Total P660,000 The terms of the agreement are that the assets and liabilities are to be restated as follows: • An allowance for possible uncollectible of P9,000 is established.

below: Cash P96,000 Accounts Payable P178,000 Accounts Receivable 184,000 Annie Capital 266,000 Inventory 330,000 Betty Capital 216,000 Equipment-net 50,000 Total P660,000 Total P660,000 The terms of the agreement are that the assets and liabilities are to be restated as follows: • An allowance for possible uncollectible of P9,000 is established.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at 50% each. Chris contributes $30,000 to the partnership for a 1/3 share. What amount should the partnership record as a bonus to Chris? A. $20,000 B. $15,000 C. $10.500 D. $5,000
The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
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