Homework Help is Here – Start Your Trial Now!
Business
Accounting
The following Statement of Financial Position for the partnership of A, B and C were taken from the books on April 1, 2016. Liabilities A, Capital B, Capital С, Сapital Total Liab and Cap Cash 100,000 400,000 P 200,000 120,000 95,000 85,000 500,000 Other assets Total assets 500,000 The partners agreed to distribute profits as follows: Salaries to A and B of P5,000 each Interest of 5% per annum on beginning capital Bonus of 15% to A based on net income after salaries, interest and bonus Remaining profit is to be divided as 25% to A, 35% to B and 40% to C The partnership began its operations on April 1, 2016 and net income for the year ended June 30, 2016 is P69,500. Which of the following statements is correct? a. The bonus to be given to A is P9,487.50. b. The net income after salaries, interest and bonus is P50,000. C. B's total share in the net income is P21,688. d. C's share on the profit after salaries, interest and bonus is P13,750.

The following Statement of Financial Position for the partnership of A, B and C were taken from the books on April 1, 2016. Liabilities A, Capital B, Capital С, Сapital Total Liab and Cap Cash 100,000 400,000 P 200,000 120,000 95,000 85,000 500,000 Other assets Total assets 500,000 The partners agreed to distribute profits as follows: Salaries to A and B of P5,000 each Interest of 5% per annum on beginning capital Bonus of 15% to A based on net income after salaries, interest and bonus Remaining profit is to be divided as 25% to A, 35% to B and 40% to C The partnership began its operations on April 1, 2016 and net income for the year ended June 30, 2016 is P69,500. Which of the following statements is correct? a. The bonus to be given to A is P9,487.50. b. The net income after salaries, interest and bonus is P50,000. C. B's total share in the net income is P21,688. d. C's share on the profit after salaries, interest and bonus is P13,750.

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 3SEB
See similar textbooks
icon
Related questions
Question
Show your solution and answer.
The following Statement of Financial Position for the partnership of A, B and C were taken from the books on April 1, 2016. Cash 100,000 400,000 Liabilities 200,000 120,000 95,000 85,000 500,000 Other assets A, Capital В, Сарital Capital Total Liab and Cap Total assets 500,000 The partners agreed to distribute profits as follows: Salaries to A and B of P5,000 each Interest of 5% per annum on beginning capital Bonus of 15% to A based on net income after salaries, interest and bonus Remaining profit is to be divided as 25% to A, 35% to B and 40% to C The partnership began its operations on April 1, 2016 and net income for the year ended June 30, 2016 is P69,500. Which of the following statements is correct? The bonus to be given to A is P9,487.50. The net income after salaries, interest and bonus is P50,000. B's total share in the net income is P21,688. d. a. b. C. C's share on the profit after salaries, interest and bonus is P13,750.
Transcribed Image Text:The following Statement of Financial Position for the partnership of A, B and C were taken from the books on April 1, 2016. Cash 100,000 400,000 Liabilities 200,000 120,000 95,000 85,000 500,000 Other assets A, Capital В, Сарital Capital Total Liab and Cap Total assets 500,000 The partners agreed to distribute profits as follows: Salaries to A and B of P5,000 each Interest of 5% per annum on beginning capital Bonus of 15% to A based on net income after salaries, interest and bonus Remaining profit is to be divided as 25% to A, 35% to B and 40% to C The partnership began its operations on April 1, 2016 and net income for the year ended June 30, 2016 is P69,500. Which of the following statements is correct? The bonus to be given to A is P9,487.50. The net income after salaries, interest and bonus is P50,000. B's total share in the net income is P21,688. d. a. b. C. C's share on the profit after salaries, interest and bonus is P13,750.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Capital Budgeting
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.
Recommended textbooks for you
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
SEE MORE TEXTBOOKS