How much is the capital of Fernan at December 31, 2019? How much is the capital of Luisa at December 31 2019? How much is the capital credited to Susan upon admission on Jan 2 2022?
On January 1, 2019 Fernan and Luisa agreed to combine their talents and capital and form a
Fernan contributed P20,000 cash, merchandise with a book value of P12,000 and a market value of P10,000 and equipment (net) with a book value of P32,000 and a market value of P20,000.
Luisa gave P15,000 cash and merchandise with a book value of P24,000 and a market value of P15,000.
On December 31, before the books are closed, the drawing account of Fernan shows a debit balance of P7,000; and for Luisa , debit balance, P6,000.
The partnership agreement with regards to division of profits and losses provides that each partner is to be allowed an annual salary of P10,000 and Fernan is to receive 65% and Luisa 35% of the balance after allowance of salaries.
The income summary account of December 31, has a credit balance of P28,000 before any entry for the allowance of salaries, and this balance is closed into the partner's capital account. The balances of the drawing accounts are also closed into the capital accounts.
On January 2 of the next year, Susan is admitted as a partner upon the investment of P40,000 in the firm. Fernan and Luisa sharing in the ratio of 65:35, give a bonus to Susan so that Susan may have a 40% interest in the firm. The new agreement provides that profits and losses are to be distributed as follows: Fernan 35%, Luisa 25%, and Susan 40%. Salaries are not allowed.
On December 31, the partners' drawing accounts have a debit balance as follows: Fernan, P4,900; Luisa P3,900; and Susan P4,200. The income summary account has a P12,000 debit balance. Accounts are closed.
- How much is the capital of Fernan at December 31, 2019?
- How much is the capital of Luisa at December 31 2019?
- How much is the capital credited to Susan upon admission on Jan 2 2022?
- How much is the new capital of Fernan on Jan 2 2020 after admission of Susan?
- How much is the new capital of Luisa on Jan 2 2020 after admission of Susan?
- How much is the share of Susan to the 2020 net income (loss)?
- How much is the ending capital of Susan at Dec 31 2020?
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