On January 2, 2015, BB and PP formed a partnership. BB contributed capital of P175,000and PP P25,000. They agreed to share profits and losses 80% and 20% respectively, PP isthe general manager and works in the partnership full time and is given a salary ofa month; an interest of 5% of the beginning capital (of both partner) and a bonusof net income before the salary, Interest and the bonus.P5,000of 15%The profit and loss statement of the partnership for the year ended December 31, 2015is as follows:Net sales.P875,000Cost of goods sold.700,000.....*...Gross profit.175,000Expenses (including the salary, interest and the bonus)143,000Net income.P 32,000The amount of bonus to PP in 2015 amounted to:С. Р13,304d. P20,700а. Р18,000b. Р16,4562.

Suppose B is the amount of Bonus, Therefore, B = (Profit before Salary and Interest but after Bonus…

Answered: The amount of bonus to PP in 2015…

Business

Accounting

The amount of bonus to PP in 2015 amounted to: a. P18,000 C. P13,304 b. P16,456 d. P20,700

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

See similar textbooks

Related questions

Q: Butcher Butcher is considering whether to invest in a new product, the Zam. Details of the Zam are a...

A: Capital budgeting is basically discovering, assessing, and choosing investments to determine a compa...

Q: The economic order quantity of Bulldogs Inc. is 1,000 unit. They sold their sole product for a sell...

A: Economic order quantity: Economic order quantity refers to the optimum level of quantity that minimi...

Q: On January 1, 2021, Mama Company purchased a machine for P2,750,000. The machine was depreciated usi...

A: Solution. Cost = P2,750,000 Life (N) = 10 years Sum of years of digits = N (N + 1) ÷ 2 = 10...

Q: Internal Controls are very Important for any Organization because hey will detect the potential frau...

A: internal control is most important, internal control primary purpose is to help the organisation sa...

Q: Bulldogs Inc. is a retail mail order firm that currently uses a centralized collection system that r...

A: The correct answer for the above mentioned question is given in the following steps for your referen...

Q: Which of the following is correct with regards to cash discounts offering? * Investment in accounts ...

A: Cash discount is given to customers for making instant payments while they purchase goods or avail s...

Q: Slosh Cleaning Corporation services both residential and commercial customers. Slosh expects the fol...

A: Answer) Calculation of Total Sales revenue required to earn desired profit Total Sales Revenue to ea...

Q: ou are an audit senior in Riskam and Co and you are commencing the planning of the audit of CariBev ...

A: Audit risks refer to the risk of material misstatements that are identified during the planning stag...

Q: oe, June, and Jim—coworkers—decide that they want to start their own business. Joe has $200,000 to c...

A: Stock- Common stock is a type of investment that represents ownership in a company. A board of direc...

Q: Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into t...

A: Solution: Under FIFO method of process costing, beginning WIP inventory cost is not included in comp...

Q: Items 21 to 27 are based on the following information: The balance sheet for the Litex Corporation o...

A: All Notes discounted at the beginning of the year got matured during the year. However, P30000 has n...

Q: Bulldogs Inc. recently reported net income of P5,000,0000. The firm has P40,000,000 total assets. Ne...

A: The increase in retained earnings is calculated as change in net income multiplied by the retention ...

Q: Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. ...

A: Total estimated overhead cost = Machining + Machine setup + Production design + General factory = $2...

Q: 47 I. Financial accounting info. is usually used exclusively by internal parties such as managers. ...

A: Financial accounting refers to recording, analyzing and reporting of financial data of a company so ...

Q: Revenue, expense, and dividend accounts accumulate changes in owners’ equity during an accounting pe...

A: Revenue is expressed as the principal source of income for any enterprise. It is basically the incom...

Q: wo firms, U and L, are identical except for their capital structure. Both will earn $150 in a Boom a

A: In this question, we have given the different situations in which we have to solve different cases.

Q: mith Inc. expects to use 96,000 litters of paint annually costing P12 per litter. Inventory carrying...

A: Inventory carrying cost is the cost of keeping items in stock. The larger the volume of inventory, t...

Q: a. What was the purchase price of the bond? b. What was the selling price of the bond? c. Wh...

A: The purchase price of bond is calculated as present value of cash flows received from bond. The cash...

Q: Pueblo Company sells a product for $88. Variable cost is $32. Pueblo could accept a special order fo...

A: Solution:- Given, Pueblo company sells product for = $88 Variable cost = $32 Pueblo could accept a s...

Q: Use the following to answer questions 20 - 22 AJ Construction is in the process of closing its opera...

A: DEPRECIATION ON STRAIGHT LINE METHOD : = ( COST - RESIDUAL VALUE ) / ESTIMATED LIFE OF ASSET

Q: The Caribbean Industrial Producers manufactures two products, “Zinc” and” “Ply”. The following sales...

A: GIVEN The Caribbean Industrial Producers manufactures two products, “Zinc” and” “Ply”. The follo...

Q: Parent Company acquires Subsidiary Company on September 1, 2020. Parent seeks an independent valuati...

A: Goodwill is an intangible asset that is associated with the purchase of one company by another. Spec...

Q: 1. Prepare the journal entries to record the February transactions. 2. Set up the following ledger a...

A: Journalizing- Journalizing is the method used by businesses to keep track of their transactions in a...

Q: Don Adams Breweries is considering an expansion project with an investment of P1,500,000. The equipm...

A: Solution: Initial investment = P1,500,000 Annual cash inflows = P450,000 Period = 5 Years

Q: Bulldogs Inc. loaned a certain amount from a reputable bank for a term of one year at 8% quoted rate...

A: Calculation of Effective rate of interest EIR = Interest / usable fund x 12/12 = 33200 / 37...

Q: You are getting a mortgage. Your home is worth $237,324, and you will make a $63,651 down payment. Y...

A: Cost of home= $ 237324 Down payment done= $ 63651 Loan= $ 237324- $ 63651 =$ 173673

Q: On April 15, 2019, Powell Inc. obtained a six-month working capital loan from its bank. The face amo...

A: Loan proceeds = Face value of the Notes - discount amount where, discount amount = Face value of the...

Q: Real Sdn Bhd did not keep his books of accounts under double entry system. Depreciation on Non- curr...

A: Debtor ledger is prepared so that all the information relating to the debtors are recorded and asses...

Q: xclusive Souvenirs Hut does customize, hand-crafted memorabilia for hotels, in which each batch of s...

A: "Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and ...

Q: Understanding of accounting and its importance

A: Accounting is the process of recording, analyzing and summarizing the financial statement . It is ve...

Q: For the past four years, ABC reported the following annual net income and dividend amounts: Year...

A: Retained Earnings: When a company's direct and indirect expenses, income taxes, and dividends to sha...

Q: At the end of November 2016, Caribbean Productions Ltd had 700 units of product BMR400 in store. For...

A: An organization or a manufacturing unit can have different cost technique which they can use to asce...

Q: The following trial balance was extracted from the books of Movies To The Max Ltd at July 31, the en...

A: The following trial balance was extracted from the books of Movies To The Max Ltd at July 31, the en...

Q: Question #12 At the end of November 2016, Caribbean Productions Ltd had 700 units of product BMR...

A: Calculation of total Product cost ; Product cost = Direct material + Direct labor + Variable manufac...

Q: Bulldogs Inc. deals with various clients throughout the city and is attempting to collect its accoun...

A: Total receipts=Daily receipts×Average amount=300×P5,000=P1,500,000

Q: Mike Greenberg opened Monty Window Washing Co. on July 1, 2022. During July, the following transacti...

Q: what is the annual interest rate cost (Use 360-day year)?

A: If the firm foregoes the cash discount offered then they would be paying higher for the goods. This ...

Q: John Doe, a 23-year young newly graduated engineer just got a job in a major engineering firm. Human...

A: In this question, we will find out inflation rate and rate of return and all calculation due to Apri...

Q: Bulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory carry...

A: Total Boxes = 48,000 Cost per Box = P12 Inventory carrying cost = 20% Safety stock = 2,400 Order per...

Q: View Policies Current Attempt in Progress Maple Leaf Foods Inc. reported the following selected info...

A: Solution.. net accounts receivable = gross accounts receivable - allowance for Doubtful debts 20...

Q: s as: Inflow or Outflow. If neither, indicate Not Applicable. Particulars Amount Classificat...

A: outflow is is the decrease of cash. inflow is increase in the cash balance. when there is purchase t...

Q: Bulldogs Inc. expected to sell in October 2021 1,000 units of Dell laptops with a purchase cost per ...

A: Lets understand the basics. Sales volume variance is a variance in which actual quantity sold compar...

Q: Stockholders' equity of Ernst Company consists of 82,000 shares of $5 par value, 10% cumulative pref...

A: Formulas used for calculations:

Q: PARENT Corporation acquired 80% of the outstanding shares of SUBSIDIARY Company on June 1, 2022 for ...

A: The net assets of a subsidiary company is the valuation of all the equity adjusted for the fair valu...

Q: an account should be referred to a professional collection agency if

A: an account should be referred to a professional collection agency in following case

Q: e the folloreing inforination JOr the Hext two questions: antract. Information on the construction i...

A: Calculation of revenue to be recognized in 2002 POC %= Cost incurred till date/Estimated total cos...

Q: Inc. offered a one-year loan to a customer client. The instrument is a discounted note with a nomina...

A: Discount rate of note (R) = 15%

Q: Compare and contrast the different types of accounting regulation that exist.

A: Accounting Regulation: Accounting regulations are being developed to allow investors , managers and ...

Q: The new manager of inventory at Bulldogs Inc. is developing an inventory control system and plans to...

A: Safety stock refers to extra or additional quantity of inventory held in stock by a company in order...

Q: what is the annual cost of financing? a. 12% b. 17.5% c. 10% d. 14%

A: Solution:- Given, A Company enters into an agreement with a firm that will factor the company's acco...

Question

On January 2, 2015, BB and PP formed a partnership. BB contributed capital of P175,000
and PP P25,000. They agreed to share profits and losses 80% and 20% respectively, PP is
the general manager and works in the partnership full time and is given a salary of
a month; an interest of 5% of the beginning capital (of both partner) and a bonus
of net income before the salary, Interest and the bonus.
P5,000
of 15%
The profit and loss statement of the partnership for the year ended December 31, 2015
is as follows:
Net sales.
P875,000
Cost of goods sold.
700,000
.....*...
Gross profit.
175,000
Expenses (including the salary, interest and the bonus)
143,000
Net income.
P 32,000
The amount of bonus to PP in 2015 amounted to:
С. Р13,304
d. P20,700
а. Р18,000
b. Р16,456
2.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.