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PROBLEM A Distribution of Profits or Losses Based on Partners' Agreement Mandatory Problem to be solved by every group Lucas, Thomas, and Stephen are partners in an architectural firm. Their capital accounts were as follows: Partner Date Debit Credit Lucas Lucas Lucas January 1, 2021 May 1, 2021 September 1, 2021 300,000.00 60,000.00 80,000.00 Thomas Thomas January 1, 2021 March 1, 2021 400,000.00 90,000.00 Thomas July 1 2021 50.000 0o

PROBLEM A Distribution of Profits or Losses Based on Partners' Agreement Mandatory Problem to be solved by every group Lucas, Thomas, and Stephen are partners in an architectural firm. Their capital accounts were as follows: Partner Date Debit Credit Lucas Lucas Lucas January 1, 2021 May 1, 2021 September 1, 2021 300,000.00 60,000.00 80,000.00 Thomas Thomas January 1, 2021 March 1, 2021 400,000.00 90,000.00 Thomas July 1 2021 50.000 0o

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 2SEB
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PROBLEM A Distribution of Profits or Losses Based on Partners’ Agreement Mandatory Problem to be solved by every group Lucas, Thomas, and Stephen are partners in an architectural firm. Their capital accounts were as follows: Partner Date Debit Credit Lucas Lucas Lucas January 1, 2021 May 1, 2021 September 1, 2021 300,000.00 60,000.00 80,000.00 Thomas Thomas Thomas Thomas January 1, 2021 March 1, 2021 July 1, 2021 September 1 400,000.00 90,000.00 50,000.00 40,000.00 Stephen Stephen Stephen Stephen January 1 April 1 June 1 500,000.00 70,000.00 30,000.00 August 1 120,000.00 Required: For each of the following independent profit and loss agreement, prepare the income distribution schedule: Salaries are provided as follows: Lucas – Php 150,000, Thomas – Php 200,000, and Stephen- Php 180,000. Special Compensation is given to Lucas amounting to 5 percent of the Net Income before distribution of salaries. Interest is 10 percent of the partners' ending capital balances. Lucas, Thomas, and Stephen will divide the remainder in a 3:3:4 ratio. Net income as of December 31, 2021 was Php 989,600. 1. Interest is 10 percent of average capital balances. Salaries are provided as follows: Lucas Php 240,000, Thomas – Php 210,000, and Stephen – Php 250,000. Thomas receives a special compensation which is 10 percent of net income after salaries and interest. Any remainder is divided equally. Net income as of December 31, 2021 was Php 1,180,800. 2. Interest is 10 percent of beginning capital balances. Salaries are provided as follows: Lucas Php 210,000, Thomas – Php 180,000, and Stephen – Php 150,000. Stephen receives a special compensation which is 15 percent of net income after salaries and interest. Any remainder is divided in the following ratio: 8:7:5 ratio. Php 929,400. 3. Net income as of December 31, 2021 was
Transcribed Image Text:PROBLEM A Distribution of Profits or Losses Based on Partners’ Agreement Mandatory Problem to be solved by every group Lucas, Thomas, and Stephen are partners in an architectural firm. Their capital accounts were as follows: Partner Date Debit Credit Lucas Lucas Lucas January 1, 2021 May 1, 2021 September 1, 2021 300,000.00 60,000.00 80,000.00 Thomas Thomas Thomas Thomas January 1, 2021 March 1, 2021 July 1, 2021 September 1 400,000.00 90,000.00 50,000.00 40,000.00 Stephen Stephen Stephen Stephen January 1 April 1 June 1 500,000.00 70,000.00 30,000.00 August 1 120,000.00 Required: For each of the following independent profit and loss agreement, prepare the income distribution schedule: Salaries are provided as follows: Lucas – Php 150,000, Thomas – Php 200,000, and Stephen- Php 180,000. Special Compensation is given to Lucas amounting to 5 percent of the Net Income before distribution of salaries. Interest is 10 percent of the partners' ending capital balances. Lucas, Thomas, and Stephen will divide the remainder in a 3:3:4 ratio. Net income as of December 31, 2021 was Php 989,600. 1. Interest is 10 percent of average capital balances. Salaries are provided as follows: Lucas Php 240,000, Thomas – Php 210,000, and Stephen – Php 250,000. Thomas receives a special compensation which is 10 percent of net income after salaries and interest. Any remainder is divided equally. Net income as of December 31, 2021 was Php 1,180,800. 2. Interest is 10 percent of beginning capital balances. Salaries are provided as follows: Lucas Php 210,000, Thomas – Php 180,000, and Stephen – Php 150,000. Stephen receives a special compensation which is 15 percent of net income after salaries and interest. Any remainder is divided in the following ratio: 8:7:5 ratio. Php 929,400. 3. Net income as of December 31, 2021 was
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