Quinto Capital (Sept 1) P20,000 (Jan 1) P165,000 (Apr 1) 75,000 Requirements: Prepare journal entries, dividing the profit for the year 2020 by using each of the following independent methods: 1. Beginning capital ratio 2. Average capital ratio (show average capital computations) 3. Ending capital ratio 4. Interest of 10% on average capital; annual salaries - Pinto, P12,000; Quinto, P6,000; the remainder, equally 5. Same as in No. 4, only that instead of P98,000 profit, the partnership earned P20.000 only
Quinto Capital (Sept 1) P20,000 (Jan 1) P165,000 (Apr 1) 75,000 Requirements: Prepare journal entries, dividing the profit for the year 2020 by using each of the following independent methods: 1. Beginning capital ratio 2. Average capital ratio (show average capital computations) 3. Ending capital ratio 4. Interest of 10% on average capital; annual salaries - Pinto, P12,000; Quinto, P6,000; the remainder, equally 5. Same as in No. 4, only that instead of P98,000 profit, the partnership earned P20.000 only
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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