On December 31, 2018, Amy and Kaye have capital balances of P400,000 and P320,000, respectively. On April 1, 2019, Amy invested an additional P400,000 while she withdrew P100,000 at the beginning of the 4th quarter. Kaye also made an additional investment of P300,000 and withdrew P20,000 on May 1. Amy is the managing partner and will receive a bonus equal to 10% of reported net income. Both partners shall receive 10% interest on their beginning capital, after which, any remainder shall be divided in the ratio of capital at the end of the period. The net income of the partnership for 2019 after tax is P600,000. How much is the share of Amy in the 2019 net income of the partnership? _____________________
On December 31, 2018, Amy and Kaye have capital balances of P400,000 and P320,000, respectively. On April 1, 2019, Amy invested an additional P400,000 while she withdrew P100,000 at the beginning of the 4th quarter. Kaye also made an additional investment of P300,000 and withdrew P20,000 on May 1. Amy is the managing partner and will receive a bonus equal to 10% of reported net income. Both partners shall receive 10% interest on their beginning capital, after which, any remainder shall be divided in the ratio of capital at the end of the period. The net income of the partnership for 2019 after tax is P600,000. How much is the share of Amy in the 2019 net income of the partnership? _____________________
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 3PA
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On December 31, 2018, Amy and Kaye have capital balances of P400,000 and P320,000, respectively. On April 1, 2019, Amy invested an additional P400,000 while she withdrew P100,000 at the beginning of the 4th quarter. Kaye also made an additional investment of P300,000 and withdrew P20,000 on May 1. Amy is the managing partner and will receive a bonus equal to 10% of reported net income. Both partners shall receive 10% interest on their beginning capital, after which, any remainder shall be divided in the ratio of capital at the end of the period. The net income of the partnership for 2019 after tax is P600,000.
How much is the share of Amy in the 2019 net income of the partnership? _____________________
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