On January 1, 2017, Kevin Garnett and Steve Nash have capital balances of P 174,600 and P 110,400, respectively. On this date, Karl Malone is admitted as a partner upon his investment of P 120,000 in the firm. Kevin and Steve, sharing profits and losses in the ratio of 65:35, gave a bonus to Karl so that Karl may have a 40% interest in the firm. How much is the decrease in Steve's capital balance?
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- On January 1, 2018, Cee and Dee have capital balances of P20,000 and P16,000 respectively. On July 1, 2018 Cee invests an additional P4,000 and Dee withdraws P1,600. Profits and losses are divided as follows: Dee is the managing partner and as such shall receive P16,000 salary and Cee shall receive P7,200; both partners shall receive interest of 10% on their beginning capital balances to offset whatever difference in capital investments they have and any remainder shall be divided equally. Income of the Cee-Dee partnership for the year 2018 is P9,600. Cee’s share in the net income is: a.P880 b.P9,200 c.P4,800 d. P600Love and Faith have been operating an accounting firm as partners for a number of years and at the beginning of 2016, their capital balances were P120,000 and P150,000, respectively. During 2019, Love invested an additional P20,000 on April 1 and withdrew P12,000 on August 30. Faith withdrew P24,000 on May 1 and invested P10,000 on November 1. In addition, Love and Faith withdrew their salary allowances of P36,000 and P42,000, respectively. At year-end 2016 total capital of the Love and Faith partnership was P360,000. Love and Faith share income after salary allowances in a ratio of 55:45. The share of Love on the 2019 net income isABC and XYZ have been operating an accounting firm as partners for a number of years and at the beginning of 2021, their capital balances were 85,000 and 70,000, respectively. During 2021, ABC invested an additional 10,000 on April 1 and withdrew 5,000 on August 30. XYZ withdrew 12,000 on May 1 and invested 12,000 on November 1. In addition, ABC and XYZ withdrew their salary allowances of 18,000 and 24,000, respectively. At year-end 2021 total capital of the ABC and XYZ partnership was 182,000. ABC and XYZ share income after salary allowances in a 60:40 ratio. What is the ending capital of XYZ:
- Victoria, Wilda and Xenia are partners in a consultancy firm which commenced its operation on July 1, 2018. Victoria is the managing partner. As per agreement for sharing profits, the managing partner will receive a salary of P12,000 per month and the remaining profit will be shared by the partners equally. On December 31, 2018, the firm determined that its income was P 300,000. How much will Wilda receive as her share in the profit? A. P 76,000 B. P 96,000 C. P 52,000 D. P 84,000Charlie McBride and Ian Jordan, who have ending capital balances of $90,000 and $40,000 respectively, agree to admit two new partners to their business on May 1, 20--. Paul Menendez will buy 30% of McBride's equity interest for $35,000 and 20% of Jordan's equity interest for $22,000. Alice Domski will invest $38,000 in the business for which sh will receive a $38,000 equity interest. Required: a. Prepare the journal entries showing the above transactions admittingMenendez and Domski to the partnership b. Calculate the ending capital balances for all four partners after theabove transactions. Charlie McBride: Ian Jordan: Paul Menendez: Alice Domski:Rachelle, Patrick, and Lorreyn formed the RPL Professional Partnership on April 1, 20X2, by contributing capital. They agreed that Lorreyn would receive P20,000 as manager of the firm, and the remainder will be divided according to the profit ratio of 34%, 44%, 22%, respectively. At the end of the month, the company had a net loss of P900,000. Discuss how the loss shall be distributed in no more than five (5) sentences.
- 11. Love and Faith have been operating an accounting firm as partners for a number of years and at the beginning of 2016, their capital balances were P120,000 and P150,000, respectively. During 2016, Love invested an additional P20,000 on April 1 and withdrew P12,000 on August 30. Faith withdrew P24,000 on May 1 and invested P10,000 on November 1. In addition, Love and Faith withdrew their salary allowances of P36,000 and P42,000, respectively. At year-end 2016 total capital of the Love and Faith partnership was P360,000. Love and Faith share income after salary allowances in a ratio of 55:45.The share of Love on the 2016 net income is: 12. A and B have capital balances of P65,000 and P35,000 and share profits 3:2. C is admitted as a partner and is given a 25% interest in the firm upon investing P40,000 cash. Profits are to be shared 5:3:2 by A, B and C. D subsequently enters the partnership by investing P25,000 for a 20% interest in assets and a 20% share of the firm’s profits.…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.
- Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2018, capital balances were as follows: Due to a cash shortage, Purkerson invests an additional $8,000 in the business on April 1, 2018. Each partner is allowed to withdraw $1,000 cash each month. The partners have used the same method of allocating profits and losses since the business’s inception: Each partner is given the following compensation allowance for work done in the business: Purkerson, $18,000; Smith, $25,000; and Traynor, $8,000. Each partner is credited with interest equal to 10 percent of the average monthly capital balance for the year without regard for normal drawings. Any remaining profit or loss is allocated 4:2:4 to Purkerson, Smith, and Traynor, respectively. The net income for 2018 is $23,600. Each partner withdraws the allotted amount each month. What are the ending capital balances for 2018?Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2018, capital balances were as follows: Purkerson $60,000 Smith 40,000 Traynor 20,000 Due to a cash shortage, Purkerson invests an additional $8,000 in the business on April 1, 2018. Each partner is allowed to withdraw $1,000 cash each month. The partners have used the same method of allocating profits and losses since the business’s inception: Each partner is given the following compensation allowance for work done in the business: Purkerson, $18,000; Smith, $25,000; and Traynor, $8,000. Each partner is credited with interest equal to 10 percent of the average monthly capital balance for the year without regard for normal drawings. Any remaining profit or loss is allocated 4:2:4 to Purkerson, Smith, and Traynor, respectively. The net income for 2018 is $23,600. Each partner withdraws the allotted amount each month.…Mahesh and Dinesh share profits and losses in the ratio of 2:1. From January01, 2014 they admit Rakesh into their firm who is to be given a share of 1/10 of the profits with a guaranteed minimum of Rs. 25,000. Mahesh and Dinesh continue to share profits as before but agree to bear any deficiency on account of guarantee to Rakesh in the ratio of 3:2 respectively. The profits of the firm for the year ending December 31, 2015 amounted to Rs. 1,20,000. Prepare Profit and Loss Appropriation Account.