P12-2B At the end of its first year of operations on December 31, 2017, RKC Company's accounts show the following. Partner Drawings Capital $15,000 $40,000 Riles Kinder 10,000 25,000 Crifui 5,000 15,000 The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2017 has not been closed to the partners' capital accounts. Instructions (a) Journalize the entry to record the division of net income for 2017 under each of the independent assumptions shown below. (1) Net income is $50,000. Income is shared 5:3:2. (2) Net income is $43.000 Riles and Kinder are given salary allowances of $15.000

P12-2B At the end of its first year of operations on December 31, 2017, RKC Company's accounts show the following. Partner Drawings Capital $15,000 $40,000 Riles Kinder 10,000 25,000 Crifui 5,000 15,000 The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2017 has not been closed to the partners' capital accounts. Instructions (a) Journalize the entry to record the division of net income for 2017 under each of the independent assumptions shown below. (1) Net income is $50,000. Income is shared 5:3:2. (2) Net income is $43.000 Riles and Kinder are given salary allowances of $15.000

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.22E

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As of December 31, 2015, D, E and F has adjusted capital balances of P100,000, P250,000 and P150,000, respectively, and shares profit equally. At the start of 2016, the partners admitted G for a 10% interest in profit and capital by contributing P100,000. The partnership earned P120,000 net income in 2009. How much is E's share in the partnership profit? Show your solution a. P24,000 b. P36,000 c. P40,000 d.P54,000
After operation and partner's withdrawals during 2014 and 2015, DE partnership has a book value of P100,000 and profits and loss percentage on January 1, 2016 as ff. Capital Balance Profit and Loss Percentage D -- P60,000 -- 70 E -- 40,000 -- 30 P100,000 100 On this date F is admitted by purchasing 1/5 of the interests of D and E (each) for a 1/5 interest in the firm; amount paid is P15,000 to D and P8,000 to E. a. The debit to the capital account of D is b. The debit to the capital account of E is c. The credit to the capital account of F is
19 AA and BB are partners with capital accounts that had the following transactions during 2022: AA BB Debit Credit Debit Credit Beginning balance, January 1 P270,000 P280,000 February 28 P80,000 March 1 120,000 April 30 160,000 June 1 P100,000 August 1 140,000 September 30 40,000 October 31 40,000 The partnership agreement provides for the following: Interest of 9% is to be provided to AA Salaries of P4,000 is to be given to BB per quarter A bonus of 25% is to be given to AA based on net income after interest and salaries Remaining balance is to be allocated on a ratio of 40:60. The income summary account has a credit balance of P1,050,000 before profit distribution. BB has a Drawing account amounting to P40,000 which is a withdrawal made by BB in anticipation of future profits on July 1, 2022. How much is the…
At the end of its first year of operations on December 31, 2010, KAT Company’s accountsshow the following.Partner Drawings CapitalH. Krik $15,000 $40,000N. Andres 10,000 25,000S.Thabo 5,000 15,000The capital balance represents each partner’s initial capital investment. Therefore, net incomeor net loss for 2010 has not been closed to the partners’ capital accounts.Required(A)Journalize the entry to record the division of net income for 2010 under each of theindependent assumptions:(1) Net income is $50,000. Income is shared 5:3:2.(2) Net income is $40,000. Kirk and Andres are given salary allowances of $15,000 and$10,000, respectively. The remainder is shared equally.(3) Net income is $37,000. Each partner is allowed an interest of 10% on beginning capitalbalances. Kirk is given a $20,000 salary allowance. The remainder is shared equally.(B) Prepare a schedule showing the division of net income under the assumption (3) above.(C) Prepare a partners’ capital statement for the year under…
17-18. The balance sheet of partners DES, PA and SITO as of December 31, 2020 are shown below: Cash– P50,000; Noncash assets – P250,000; Liabilities – P80,000; Des, Capital (50%) – P100,000; Pa, Capital(25%) P75,000; Sito, Capital (25%) – P45,000. On January 2021, certain noncash assets were sold for acertain amount. Liquidation expenses and liabilities of P4,000 and P25,000 were paid. Future liquidationexpenses of P5,000 are anticipated. Pa received P42,750 from the first distribution of available cash.17. How much is the cash received from the realization? a. P120,000b. P140,000c. P130,000d. P75,000
11 On January 1, 2017, ACJ Partnership entered into liquidation. The partners’ capital balances on this date were as follows: A (25%) P2,500,000 ; C (35%) P5,400,000 ; J (40%) P3,700,000. The partnership has liabilities amounting to P4,400,000, including a loan from C P600,000. Cash on hand before the start of liquidation is P800,000. Noncash assets amounting to P7,400,000 were sold at book value and the rest of the noncash assets were sold at a loss of P4,200,000. 1. How much cash will be distributed to the partners? Group of answer choices 7,400,000 11,800,000 8,000,000 4,400,000 2. After exhausting the noncash assets of the partnership, assuming all partners has personal assets more than their personal liabilities. How much cash must be invested by the partners to satisfy the claims of the outside creditors and to pay the amount due to the partner/s? Group of answer choices 3,800,000 4,360,000 4,480,000 3,680,000
#516 On December 31, 2020, ABC Partnership’s Statement of Financial Positions shows that A, B, and C have capital balances of P500,000, P300,000, and P200,000 with a profit and loss ratio of 1:3:6. On January 1, 2021, C retired from the partnership and received P350,000. At the time of C’s retirement, the assets of the partnership are undervalued and revaluation is necessary. What is the capital balance of B after the retirement of C? 375,000 537,500 525,000 562,500 What is the capital balance of A after the retirement of C? 537,500 525,000 562,500 375,000
Problem 1 At the end of the its first year of operations on December 31, 2020, HEART ATTACK Company's accounts show the following: Partner Mr. Chicharon Mr. Bulalo Mr. L. Kawali Drawings P 23,000 P 14,000 P 10,000 Capital P 48,000 P 30,000 P 25,000 The capital balances represents each partner's initial capital investment. Therefore, net income or net loss for 2020 has not been closed to the partners' capital accounts. Instructions: a. Journalize the entry to record the division of net income for the year 2020 under each of the following independent assumptions. 1. Net income is P 30,000. Income is shared 6:3:1 2. Net income is P 40,000, Mr. Chicharon and Mr. Bulalo are given salary allowances of P 15,000 and P 10,000, respectively. The remainder is shared equally. 3. Net income is P 19,000. Each partner is allowed interest of 10% on beginning capital balances. Mr. Chicharon is given a P 15,0000 salary…
AA, BB and Cc are partners with average capital balances during 2021 of 360,000, 180,000 and120,000 respectively. Partners receive 10% interest on their average capital balances. After deductingsalaries of 90,000 to AA and 60,000 to CC the residual profit or loss is divided equally. In 2021, thepartnership sustained a 99,000 loss before interest and salaries to partners. By what amount shouldAA’s capital account change?a. 21,000 increaseb. 33,000 decreasec. 105,000 decreased. 126,000 increase
At the end of its first year of operations on December 31, 2019, CAP Company’s accountsshow the following.Partner Drawing CapitalCharlies $15,000 $40,000Andrew 10,000 25,000Patrick 5,000 15,000The capital balance represents each partner’s initial capital investment. Therefore, net incomeor net loss for 2019 has not been closed to the partners’ capital accounts.Instruction(a) Journalize the entry to record the division of net income for 2019 under each of theindependent assumptions shown on the following:(1) Net income is $50,000. Income is shared 5:3:2.(2) Net income is $40,000. Charlies and Andrew are given salary allowances of$15,000 and $10,000, respectively. The remainder is shared equally.(3) Net income is $37,000. Each partner is allowed interest of 10% on beginningcapital balances. Charlies is given an $20,000 salary allowance. The remainderis shared…
10 As of December 31, 2020, the books of ABC partnership showed capital balances of: A, P60,000; B, P30,000 and C, P5,000. The partnership's profit or loss ratio was 5:3:2, respectively. The partners decided to liquidate and they sold all non-cash assets for P40,000. After the settlement of all liabilities amounting to P10,000, they still have cash of P20,000 left for distribution. Assuming that any capital debit balance is uncollectible, determine payment to partner B at the end of the liquidation.
YES Partnership started operations on January 2, 2016 with the following capital balances: Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions: • Yves will be given an annual salary of P16,000 and Serge P8,000 • All partners will be given 10% interest on beginning capital balances every year • The balance of the profit, or the loss, will be divided on a 2:5:3 to Yves, Ernest and Serge, respectively. In 2016, partnership operations resulted in a net loss of P16,000, while in 2017, it was a net profit of P32,000. All partners withdrew the maximum amount of P8,000 each year. Required: Compute for the following: 1. Share in Net Profit or Net Loss for 2016 and 2017 2. Ending Capital of each partner for 2016 and 2017 • Net income before salary interest bonus (NIBSIB) • Net income after salary interest bonus (NIASIB) • Net income before salary interest after bonus (NIBSIAB) • Net income after salary interest…