Capital balances in Sheridan Co. are Lango $42,200, Oslo $31,100, and Fernetti $14,700. Fernetti has decided to leave the partnership. Lango and Oslo each agree to pay Fernetti $14,900 from their personal assets. Lango and Oslo each receive 50% of Fernetti's equity. The partners share income equally. Journalize the withdrawal of Fernetti. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. Account Titles and Explanation Debit Credit Fernetti, Capital 14700 Lango, Capital 50 Oslo, Capital 50
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- 2. Rene, Michael, and Kevin are partners in an accounting firm. Their capital accountbalance at year-end were Rene, P90,000; Michael, P120,000; and Kevin,P160,000. They share profit and losses on a 4:4:2 ratio after considering thefollowing terms: a. Kevin is to receive a bonus of 10% of net income. b. Interest of 5% shall be paid on partner’s capital. c. Salaries of P8,000 and P10,000 shall be paid to partners Rene and Kevinrespectively. Assuming a net income of P84,000 for the year. REQUIRED: Prepare the following:A. Profit or Loss Distribution TableB. Corresponding JOURNAL ENTRY to distribute profit or loss16 - In a collective company with three partners, it has been decided that the capital of each partner will be reduced by 10,000 TL and the company's capital will be reduced to 70,000 TL. Necessary legal procedures have been completed. Accordingly, in the journal entry, which account will be the first on the debtor and how much will it cost?A) 501- Unpaid Capital Hs. 10,000B) 500- Capital Hs. 30,000C) 100- Cash Hs. 70,000D) 331- Payables to Partners Hs. 30,000E) 131 Receivables from Partners Exc. 30,000Cupcake and Sugar share profits and losses 1/3 and 6/9 respectively. Cupcake receives amonthly salary of P15,000. If Cupcake’s capital balance is P250,000 at the beginning of the year andP150,000 at the end of the year, and annual partnership income after salaries is P120,000, thenCupcake withdrew what is the answer and why?a.) P130,000 b.) P155,000 c.) P320,000 d.) P180,000
- 5. A local partnership was in the process of liquidating and reported the following capital balances:Justice,Capital (40% share of all profits and losses) – P23,000; Zobart, Capital (35%) – P22,000; Douglass, Capital(25%) – (P14,000). Douglass indicated that the P14,000 deficit would be covered by a forthcomingcontribution. However, the two remaining partners asked to receive the P31,000 that was then available.How much of this money should Justice receive? a. P15,000b. P15,467c. P17,333d. P15,533Show the solution in good accounting form Bruce, Parker and May formed a partnership. Their capital balances showed the following: Bruce, Capital P252,000; Parker, Capital P126,000; May, Capital- P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000 Violet will pay the money directly to the other partners. How much was the bonus debited or credited in partner Bruce's capital account?1. Jeremy and Eli are partners who share profits and losses equally. The capital accounts of the partners have the following balances: Jeremy 180,000 Eli 70,000 Thadez desires to join the firm and offered to invest 96,000 for a 1/3 interest. Jeremy and Eli declined his offer, but they extended a counter-offer to Thadez of 88.000 for a 25% interest in the capital and profits and losses of the firm. If Thadez accepted the offer, what would be the balance of Jeremy's capital account after Thadez's admission? A. 178,250 B. 187.000 C. 199,000 D. 181,750
- YES Partnership started operations on January 1, 201 balances : with the following capital Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions : Yves will be given an annual salary of P16,000 and Serge P8,000 All partners will be given 10% interest on beginning capital balances every year Bonus of 20% of Net Income will be given to Yves The balance of the profit , or the loss, will be divided on a 5 :2:3 to Yves , Ernest and Serge, respectively . A. Assuming that the company resulted in a net loss of 16,000 in 2016 1. What is the share of Yves in Net Profit or Net Loss for 2016? 2. What is the share of Ernest in Net Profit or Net Loss for 2016? 3. What is the share of share in Net Profit or Net Loss for 2016? B. Assuming that the company resulted in a profit of 24.200 in 2016 : 1. What is the share of Yves in Net Profit or Net Lose for 2016? 2. What is the share of Ernest in Net Profit or Net Loss for 2016 ? 3. What is the Serge in Net…YES Partnership started operations on January 1, 201 balances : with the following capital Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions : Yves will be given an annual salary of P16,000 and Serge P8,000 All partners will be given 10% interest on beginning capital balances every year Bonus of 20% of Net Income will be given to Yves The balance of the profit , or the loss, will be divided on a 5 :2:3 to Yves , Ernest and Serge, respectively . B. Assuming that the company resulted in a profit 150.000 in 2016 : 1. What is the share of Yves in Net Profit or Net Lose for 2016? 2. What is the share of Ernest in Net Profit or Net Loss for 2016 ? 3. What is the Serge in Net Profit or Net Loss for 2016?Abe, Ben, and Cain are partners in the ratio of 3:4:2. Abe, Ben and Cain has a capital balance prior to the retirement of P50,000, 60,000 and 70,000. Ben is retiring from the firm. The profit on revaluation of asset on that date of retirement was P36,000. The new ratio of A and C is 5:3 after the retirement. Profit on revaluation will be distributed as P16,000, B P12,000, C P8,000 P12,000, B P16,000, C P8,000 P22,500, C P13,500 P23,625, C P12,375 Abe, Ben, and Cain are partners in the ratio of 3:4:2. Abe, Ben and Cain has a capital balance prior to the retirement of P50,000, 60,000 and 70,000. Ben is retiring from the firm. The profit on revaluation of asset on that date of retirement was P36,000. The new ratio of A and C is 5:3 after the retirement. If Ben is to receive an amount equal to the book value of his capital balance, the amount he should get is 50,000 72,000 70,000 Abe, Ben, and Cain are partners in the ratio of 3:4:2. Abe, Ben and Cain has a capital balance prior to…
- 37. AAA, BBB, CCC, and DDD are partners sharing profits in the ratio of 3/21, 4/21, 6/21,and 8/21. Their capital balances on December 31, 2030 are as follows: AAA P 500BBB 12,500CCC 12,500DDD 4,500 The partners decide to liquidate their firm and they accordingly convert the noncash assets into P11,600 cash. After paying liabilities of P1,500, they have P11,100 to divide. How much was the distribution to partner CCC?a. P0b. P3,560c. P4,160d.P7,100Partners AIL and Charish capital is 480,000 and 520,000, respectively. They share profit or loss equally in their merchandising business. After admitting BLAIRE, they agreed to have a total capital of P2,500,000. The new partner invested P500,000 for 30% interest in the business. Questions: 6. What is the capital of AIL and Charish after admitting BLAIRE? 7. What is the capital of BLAIRE after admission? 8. How much is the amount of Bonus to or (from) Charish? 9. How much is the amount of revaluation credited to AIL?Question Stephanie Calamba and Allan Brillantes decided to form a partnership. They agreed that Calamba will invest P200,000 and Brillantes, P300,000. Calamba will devote full time to the business, and Brillantes on part-time only. The following plans for the division of profits are being considered: 1. Interesto of 10% on original investments and the remainder 3:2 2. Interest of 10% on original investments, salary allowances of P340,000 to Calamba and P170,000 to Brillantes, and the remainder equally. 3. Plan (e), except that Calamba is also to be allowed a bonus equal to the 20% of the amount by which profit exceeds the salary allowances. Determine the partners’ share in profit or loss for each of the situations above assuming: (1) Profit of P1,500,000 (2) Profit of P660,000