The following Balance Sheet for the partnership of Apple, Sam and Sophia were taken from the books on October 1, 2018. ASSETS LIABILITIES & CAPITAL P 100,000 400,000 Liabilities Apple, capital Sam, capital Sophia, capital Total P 200,000 120,000 95,000 85,000 500,000 Cash Other Assets Total Assets P 500,000 Liabilities and Capital The partners agreed to distribute profits as follows: 1) Annual salaries to Apple and Sam of P 5,000 each Annual interest of 5% on beginning capital 2) 3) Bonus of 15% to Sophia based on income after salaries, interest and bonus Remaining profit: 25% to Apple, 35% to Sam and 40% to Sophia 4) The partnership began its operations on October 1, 2018 and net income as of December 31, 2018 is P 69,500. Which of the following is true? A. The bonus to Sophia is P 5,804 B. Net Income after salaries, interest and bonus is P 38,696. C. Sam's total share in the net income is P 21,688. D. Sophia's share on the profit after salaries, interest and bonus is P13,543.
The following Balance Sheet for the partnership of Apple, Sam and Sophia were taken from the books on October 1, 2018. ASSETS LIABILITIES & CAPITAL P 100,000 400,000 Liabilities Apple, capital Sam, capital Sophia, capital Total P 200,000 120,000 95,000 85,000 500,000 Cash Other Assets Total Assets P 500,000 Liabilities and Capital The partners agreed to distribute profits as follows: 1) Annual salaries to Apple and Sam of P 5,000 each Annual interest of 5% on beginning capital 2) 3) Bonus of 15% to Sophia based on income after salaries, interest and bonus Remaining profit: 25% to Apple, 35% to Sam and 40% to Sophia 4) The partnership began its operations on October 1, 2018 and net income as of December 31, 2018 is P 69,500. Which of the following is true? A. The bonus to Sophia is P 5,804 B. Net Income after salaries, interest and bonus is P 38,696. C. Sam's total share in the net income is P 21,688. D. Sophia's share on the profit after salaries, interest and bonus is P13,543.
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 2BCRQ
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Transcribed Image Text:The following Balance Sheet for the partnership of Apple, Sam and Sophia were taken from the books on
October 1, 2018.
ASSETS
LIABILITIES & CAPITAL
P 100,000
400,000
P 200,000
120,000
95,000
85,000
500,000
Cash
Liabilities
Other Assets
Apple, capital
Sam, capital
Sophia, capital
Total
Total Assets
P 500,000
Liabilities
and
Capital
The partners agreed to distribute profits as follows:
Annual salaries to Apple and Sam of P 5,000 each
1)
Annual interest of 5% on beginning capital
2)
3) Bonus of 15% to Sophia based on income after salaries, interest and bonus
4)
Remaining profit: 25% to Apple, 35% to Sam and 40% to Sophia
The partnership began its operations on October 1, 2018 and net income as of December 31, 2018 is P
69,500. Which of the following is true?
A. The bonus to Sophia is P 5,804
B. Net Income after salaries, interest and bonus is P 38,696.
C. Sam's total share in the net income is P 21,688.
D. Sophia's share on the profit after salaries, interest and bonus is P13,543.
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