answer the requirements with complete solution PROBLEM 3: EXERCISES1. Partners A and B share in profits and los es on a 70:30 ratioafter salaries of P80,000 for A and P40,000 or B. The businessearned profit of P180,000 before deductionnce oftnershior the salaries.Requirements:a. Compute for the partners' respective share in the profit.b. Provide the journal entries (the salars are withdrawnperiodically).ibuted.tribute

A journal entry is a form of accounting entry that is used to report a business transaction in a…

Answered: PROBLEM 3: EXERCISES 1. Partners A and…

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 12.15EX

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2. The capital balances of partners Po and Gi are as follows:Po GiJanuary 1, Beginning P100,000 P200,000June 30, investment 50,000 -September 30, withdrawal - (100,000)Balance P150,000 P100,000Their agreement is to share profit and loss based on average capital balance. How muchis the share of Gi in the partnership’s income of P450,000?
Required: 1. How much will Mira receive if the net income earned is P 155,000? * 2. Except that the company incurred net loss of P 9,200, compute for the share of each partner. *
Required: 3. Prepare journal entry to record Pedro’s admission. 4. During the first year of operations, the partnership earned P650,000. After Pedro’s admission, the profitand loss sharing ratio is 40:40:20 for Juan, Pablo, and Pedro, respectively, based on capital credits.Drawings were made in these amounts: Juan, P100,000; Pablo, P130,000; Pedro – P56,000. What isthe capital balance of Pedro after the first year?
Partners A, B, and C have a profit and loss agreement with the following provisions: salaries of $13,000 and $12,000 for A and C, respectively; a bonus to C of 10% of net income after bonus; and interest of 6% on ending capital in excess of $100,000. Ending capital balance is $80,000 for A, $150,000 for B, and $110,000 for C. Remaining profit/loss is allocated to A, B, C in the ratio of 2:1:1. If the partnership had net income of $22,000, how much should be allocated to Partner C? Select one: 14,600 8,700 850 12,450
Partners A, B, and C have a profit and loss agreement with the following provisions: salaries of $13,000 and $12,000 for A and C, respectively; a bonus to C of 10% of net income after bonus; and interest of 6% on ending capital in excess of $100,000. Ending capital balance is $80,000 for A, $150,000 for B, and $110,000 for C. Remaining profit/loss is allocated to A, B, C in the ratio of 2:1:1. If the partnership had net income of $22,000, how much should be allocated to Partner C? a. 12,450 b. 14,600 c. 8,700 d. 850
Show Your Solutions 1) The following condensed Balance Sheet was prepared for Bi, Na, Ta partnership on March 31,200B: Cash P 30,000 Liabilities P 60,000 Other Assets P 190,000 Bi, Capital P 44,000 Na, Capital P 66,000 Ta, Capital P 50,000 P 220,000 P 220,000 The other assets were sold for P50,000. Profits are shared 4;4;2, for Bi, Na, and Ta, respectively. Bi is insolvent . The amount of cash received by Na was: 2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. How much was the loss on realization? 3) After realization…
Partners WAG, MAG, PANG, and GAP, shares profits at the ratio 5:3:1:1. OnJune 30, relevant partners’ accounts follow: Advances Loans Capital Dr. Cr. Cr. WAG 20,000 160,000MAG 40,000 120,000PANG 18,000 60,000GAP 10,000 100,000 On this day, cash of P72,000 is declared as available for distribution topartners as profits. How much will partner Gap receive from the 72,000 if he has a hare in it?
n the year ended 31/12/2018 total income of Palestine co,20,000 if A partner received 5,000 annual salary and reaming divided equally between the two partners A and B so Finally the reamig profit should be allocated to partners will be 15,000 Select one: True False
Partners A, B and C are contemplating using the following profit distribution plan: Salary is to be given to A in the amount of P60,000, with the remainder in an equal rates to all partners. A is guaranteed a minimum profit share of P100,000. a) Profit for the first year is P240,000 b) Profit for the second year is P150,000. Compute for the profit share of partners B and C in both years.
2. Rene, Michael, and Kevin are partners in an accounting firm. Their capital accountbalance at year-end were Rene, P90,000; Michael, P120,000; and Kevin,P160,000. They share profit and losses on a 4:4:2 ratio after considering thefollowing terms: a. Kevin is to receive a bonus of 10% of net income. b. Interest of 5% shall be paid on partner’s capital. c. Salaries of P8,000 and P10,000 shall be paid to partners Rene and Kevinrespectively. Assuming a net income of P84,000 for the year. REQUIRED: Prepare the following:A. Profit or Loss Distribution TableB. Corresponding JOURNAL ENTRY to distribute profit or loss
YES Partnership started operations on January 1, 201 balances : with the following capital 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 Bonus of 20% of Net Income will be given to Yves The balance of the profit , or the loss, will be divided on a 5 :2:3 to Yves , Ernest and Serge, respectively . A. Assuming that the company resulted in a net loss of 16,000 in 2016 1. What is the share of Yves in Net Profit or Net Loss for 2016? 2. What is the share of Ernest in Net Profit or Net Loss for 2016? 3. What is the share of share in Net Profit or Net Loss for 2016? B. Assuming that the company resulted in a profit of 24.200 in 2016 : 1. What is the share of Yves in Net Profit or Net Lose for 2016? 2. What is the share of Ernest in Net Profit or Net Loss for 2016 ? 3. What is the Serge in Net…
YES Partnership started operations on January 1, 201 balances : with the following capital 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 Bonus of 20% of Net Income will be given to Yves The balance of the profit , or the loss, will be divided on a 5 :2:3 to Yves , Ernest and Serge, respectively . B. Assuming that the company resulted in a profit 150.000 in 2016 : 1. What is the share of Yves in Net Profit or Net Lose for 2016? 2. What is the share of Ernest in Net Profit or Net Loss for 2016 ? 3. What is the Serge in Net Profit or Net Loss for 2016?

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