Exercise 3 - 4. Journalizing Closing Entries The following is the list of income and expense accounts of JJJ Partnership as of year-end December 31, 2020. P 7,500 50,000 8,000 300,000 10,000 800,000 90,000 12,000 4,500 9,500 15,000 60,000 Freight-in Merchandise Inventory, Jan. 1 Purchase Discount Purchases Rent Expense Sales Salaries and Wages Sales Discount Sales Returns and Allowances Supplies Expenses Taxes and Licenses Expense Utilities Expense Additional information: Merchandise Inventory, Dec. 31 26,500 Required: 1. Prepare the income statement JJJ Partnership for the year-end December 31, 2020. 2. Net income or loss is divided equally among the three partners James, John, and Jude. 3. Income tax rate is at 20%. Exercise 3-5. Distribution of Net Income Luz, Olivia, Vera, and Ethel are partners of LOVE Trading sharing profits in the ratio of 3:4:2:1. At the end of the accounting period, the partnership's operation resulted a net profit of P450,000. 19 Copyright © 2021 Marivic Valenzuela-Manalo. All rights reserved. No part of this learning module may be used, reproduced, stored, or transmitted in any form or by any means without the written consent of the author. Record the journal entry to distribute net income of the partnership.
Exercise 3 - 4. Journalizing Closing Entries The following is the list of income and expense accounts of JJJ Partnership as of year-end December 31, 2020. P 7,500 50,000 8,000 300,000 10,000 800,000 90,000 12,000 4,500 9,500 15,000 60,000 Freight-in Merchandise Inventory, Jan. 1 Purchase Discount Purchases Rent Expense Sales Salaries and Wages Sales Discount Sales Returns and Allowances Supplies Expenses Taxes and Licenses Expense Utilities Expense Additional information: Merchandise Inventory, Dec. 31 26,500 Required: 1. Prepare the income statement JJJ Partnership for the year-end December 31, 2020. 2. Net income or loss is divided equally among the three partners James, John, and Jude. 3. Income tax rate is at 20%. Exercise 3-5. Distribution of Net Income Luz, Olivia, Vera, and Ethel are partners of LOVE Trading sharing profits in the ratio of 3:4:2:1. At the end of the accounting period, the partnership's operation resulted a net profit of P450,000. 19 Copyright © 2021 Marivic Valenzuela-Manalo. All rights reserved. No part of this learning module may be used, reproduced, stored, or transmitted in any form or by any means without the written consent of the author. Record the journal entry to distribute net income of the partnership.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter1: Accounting And The Financial Statements
Section: Chapter Questions
Problem 46E: OBJECTIVE 6 Exercise 1-46 Income Statement ERS Inc. maintains and repairs office equipment. ERS had...
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Transcribed Image Text:Exercise 3 – 4. Journalizing Closing Entries
The following is the list of income and expense accounts of JJJ Partnership as of year-end
December 31, 2020.
Freight-in
Merchandise Inventory, Jan. 1
P 7,500
50,000
8,000
300,000
10,000
800,000
90,000
12,000
4,500
Purchase Discount
Purchases
Rent Expense
Sales
Salaries and Wages
Sales Discount
Sales Returns and Allowances
Supplies Expenses
Taxes and Licenses Expense
Utilities Expense
Additional information:
Merchandise Inventory, Dec. 31
9,500
15,000
60,000
26,500
Required:
1. Prepare the income statement JJJ Partnership for the year-end December 31, 2020.
2. Net income or loss is divided equally among the three partners James, John, and Jude.
3. Income tax rate is at 20%.
Exercise 3-5. Distribution of Net Income
Luz, Olivia, Vera, and Ethel are partners of LOVE Trading sharing profits in the ratio of 3:4:2:1.
At the end of the accounting period, the partnership's operation resulted a net profit of P450,000.
19
Copyright © 2021 Marivic Valenzuela-Manalo. All rights reserved.
No part of this learning module may be used, reproduced, stored, or transmitted in any form or by any means without the written
consent of the author.
Record the journal entry to distribute net income of the partnership.
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