lad the 9. Michael and Jackson are partners following transactions during 2020: Jackson Michael Debit Credit P182,000 Debit Credit P175,500 Balance, January 1, 2020 February 28 March 31 P52,000 78,000 April 30 104,000 June 30 65,000 91,000 August 31 September 30 October 31 26,000 26,000 The Income Summary account has a credit balance of P663,000. Requirements: Prepare a statement of profit distribution for each of the following independent profit-sharing agreements: 1. In the average capital ratio. 2. Interest on average capital at 9 percent, salaries of P78,000 to Michael and P130,000 to Jackson, respectively, a bonus to Michael of 25 percent of net income after interest and salaries but before the bonus, and the balance. equally. 3. Interest at 10 percent on the amount by which the ending capia balance exceeds the beginning balance and the balance equally. 4. Salaries of P104,000 and P156,000 to Michael and Jackson, respective a bonus to Michael of 25 percent of net income after salaries and t bonus, and the balance equally.

lad the 9. Michael and Jackson are partners following transactions during 2020: Jackson Michael Debit Credit P182,000 Debit Credit P175,500 Balance, January 1, 2020 February 28 March 31 P52,000 78,000 April 30 104,000 June 30 65,000 91,000 August 31 September 30 October 31 26,000 26,000 The Income Summary account has a credit balance of P663,000. Requirements: Prepare a statement of profit distribution for each of the following independent profit-sharing agreements: 1. In the average capital ratio. 2. Interest on average capital at 9 percent, salaries of P78,000 to Michael and P130,000 to Jackson, respectively, a bonus to Michael of 25 percent of net income after interest and salaries but before the bonus, and the balance. equally. 3. Interest at 10 percent on the amount by which the ending capia balance exceeds the beginning balance and the balance equally. 4. Salaries of P104,000 and P156,000 to Michael and Jackson, respective a bonus to Michael of 25 percent of net income after salaries and t bonus, and the balance equally.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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