In January 2021, Lux and Jinx agreed to produce and sell chocolate candies, and form a partnership called "Wild-Rift Partneship". Lux contributed P2,400,000 in cash to the business. Jinx contributed the building and equipment, valued at P2,200,000 and P1,400,000 respectively. The partnership had profits of P840,000 during 2021 but was less successful during 2022, when profit was only P400,000. Required: 1. Prepare the journal entry to record the investment of both partners 'in the partnership. 2. Determine the share of profit for each partner in 2021 and 2022 under each of the The partners agreed to share profit equally b. Partners failed to agree on a profit-sharing arrangement c. The partners agreed to share profit according to the ratio of their original investment a.
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- In January 2019. Nick Marasigan and Dems Asacta agreed to produce and sell chocolate candies. Marasigan contributed P2,400,000 in cash to the business. Asacta contributed the building and equipment, valued at P2,200,000 and P1.400,000, respectively. The partnership had profits of P840,000 during 2019 but was less successful during 2020, when profit was only P400,000. Required: d. The partners agreed to share profits by allowing interest of 10% on their original Investments and dividing the remainder equally The partners agreed to share profits by allowing salaries of P400,000 for Marasigan and P280,000 for Asacta, and dividing the remainder equally. The partners agreed to share profits by paying salaries of P400,000 to Marasigan and P280,000 to Asacta, allowing interest of 9% on their original investments. and dividing the remainder equally.In January 2018, Nick Marasigan and Dems Asacta agreed to purchase and sell chocolate candies. Marasigan contributed P2,400,000 in cash to the business. Asacta contributed the building and equipment, valued at P 2,200,000 and P 1,400,000, respectively. The partnership had profits of P480,000 during 2018 but was less successful during 2019, when profit was only P400,000. Required:1. Prepare the journal entry to record the investment of both partners in the partnership.2. Determine the share of profit for each partner in 2018 and 2019 under each of the following conditions:a. The partners agreed to share profit equally.b. The partners failed to agree on a profit-sharing arrangement.c. The partners agreed to share profit according to the ratio of their original investments.d. The partners agreed to share profits by allowing interest of 10% on their original investments and dividing the remainder equally.e. The partners agreed to share profits by allowing salaries of P400,000 for Marasigan…On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $298,000 cash and $396,000 of equipment, respectively. The partnership also assumed responsibility for a $58,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $168,000, both are to receive an annual interest allowance of 5% of their original capital investments, and any remaining profit or loss is to be shared 40/60 (to Bow and Adams, respectively). On November 20, 2020, Adams withdrew cash of $118,000. At year-end, May 31, 2021, the Income Summary account had a credit balance of $560,000. On June 1, 2021, Peter Williams invested $138,000 and was admitted to the partnership for a 20% interest in equity. Required: 1. Prepare journal entries for the following dates. a. June 1, 2020 b. November 20, 2020 c. May 31, 2021 d. June 1, 2021 2. Calculate the balance in each…
- On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $288,000 cash and $376,000 of equipment, respectively. The partnership also assumed responsibility for a $48,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $158,000, both are to receive an annual interest allowance of 10% of their original capital Investments, and any remaining profit or loss is to be shared 40/60 (to Bow and Adams, respectively). On November 20, 2020, Adams withdrew cash of $108,000. At year-end, May 31, 2021, the Income Summary account had a credit balance of $460,000. On June 1, 2021, Peter Williams Invested $128,000 and was admitted to the partnership for a 20% Interest in equity. Required: 1. Prepare Journal entries for the following dates. A. June 1, 2020 B. November 20, 2020 Record the withdrawal by partner. C. June 1, 2021 Record the admission of…In January 2018, Nick Marasigan and Dems Asacta agreed to produce and sell chocolate candies. Marasigan contributed P2400000 in cash to the business. Asacta contributed the building and equipment, valued at P2200000 and P1400000, respectively. The partnership had profits of P840000 during 2018 but was less successful during 2019, when profit was only P400000.Required:1.Prepare the journal entry to record the investment of both partners in the partnership.2.Determine the share of profit for each partner in 2018 and 2019 under each of the following conditions:a.The partners agreed to share profit equally.b.The partners failed to agree on a profit-sharing arrangement.c.The partners agreed to share profit according to the ratio of their original investment.d.The partners agreed to share profits by allowing interest of 10% on their original investments and dividing the remainder equally.e.The partners agreed to share profits by allowing salaries of P400000 for Marasigan and P280000 for…On January 1, 2019 Fernan and Luisa agreed to combine their talents and capital and form a partnership. 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…
- On February 1, 2020, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams contributed $89,000 cash and Xie contributed land valued at $129,000 and a small building valued at $189,000. Also, the partnership assumed responsibility for Xie’s $139,000 long-term note payable associated with the land and building. The partners agreed to share profit or loss as follows: Williams is to receive an annual salary allowance of $99,000, both are to receive an annual interest allowance of 12% of their original capital investments, and any remaining profit or loss is to be shared equally. On November 20, 2020, Williams withdrew cash of $69,000 and Xie withdrew $54,000. After the adjusting entries and the closing entries to the revenue and expense accounts, the Income Summary account had a credit balance of $169,000.Required:1. Present general journal entries to record the initial capital investments of the partners, their cash withdrawals, and the December 31 closing of the Income…As of June 30, 2020, Kagura and Hayabusa decided to form a Partnership. Their balance sheet on this date is as follows: Account Kagura Hayabusa Cash 70,000 40,000 Accounts Receivable 20,000 30,000 Allowance for doubtful accounts - 2,000 Notes receivable 10,000 20,000 Merchandise Inventory 80,000 100,000 Machinery and equipment 120,000 - Furnitures and Fixtures - 110,000 Accumulated Depreciation 10,000 20,000 Accounts payable 30,000 20,000 Notes payable 20,000 5,000 The partners agreed to the following adjustments: Uncollectible accounts of P3,000 for Kagura is to be provided; and 10% of the account receivable for Hayabusa is uncollectible. Kagura’s inventory amounting to P5,000 is worthless, while Hayabusa’s inventory has a fair value of P140,000 and costs to sell of P10,000. An interest of 10% on notes receivable dated March 31, 2020 is to be accrued for both books. Accrued rent income of…As of June 30, 2020, Kagura and Hayabusa decided to form a Partnership. Their balance sheet on this date is as follows: Account Kagura Hayabusa Cash 70,000 40,000 Accounts Receivable 20,000 30,000 Allowance for doubtful accounts - 2,000 Notes receivable 10,000 20,000 Merchandise Inventory 80,000 100,000 Machinery and equipment 120,000 - Furnitures and Fixtures - 110,000 Accumulated Depreciation 10,000 20,000 Accounts payable 30,000 20,000 Notes payable 20,000 5,000 The partners agreed to the following adjustments: Uncollectible accounts of P3,000 for Kagura is to be provided; and 10% of the account receivable for Hayabusa is uncollectible. Kagura’s inventory amounting to P5,000 is worthless, while Hayabusa’s inventory has a fair value of P140,000 and costs to sell of P10,000. An interest of 10% on notes receivable dated March 31, 2020 is to be accrued for both books. Accrued rent income of…
- Pedernal, Pating, and Liggayu are forming a new partnership. Pedernal is to invest cash of P100,000 and stapling equipment originally costing P120,000 but has a second-hand market value of P50,000. Pating is to invest cash of P160,000. Liggayu, whose family is engaged in selling stapling equipment, is to contribute cash of P50,000 and a brand new stapling equipment to be used by the partnership with a regular price of P120,000 but which cost their family's business P100,000. The partners agreed to share profits equally. The capital balances upon formation are:n April 30, 2018, Lacson, Yacapin, and Bernal formed a partnership by combining their separate business proprietors. Lacson contributed cash of P50,000. Yacapin contributed property with a P36,000 carrying amount, a P40,000 original cost, and P80,000 fair value. The partnership accepted responsibity for the P35,000 mortgaged attached to the property. Bernal contributed equipment with a P30,000 carrying amount, a P75,000 original cost, and P55,000 fair value. The partnership agreement specifies that profits and losses are to be shared equally but is silent regarding capital contributions. Which partner has the largest capital balance?