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to accept a salar salary of P25,0O 20% of net incor

to accept a salar salary of P25,0O 20% of net incor

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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MINGYU is trying to decide whether to accept a salary of P60,000 or a salary of P25,000 plus a bonus of 20% of net income after salaries and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be P75,000. What amount of income would be necessary so that MINGYU would consider the choices to be equal? Your answer EREN incurred P106,000 of direct labor and P11,000 of indirect labor. The proper journal entry to record these events would include a debit to Work in Process for: PO because Work in Process should be credited. PO because Work in Process is not affected. P11,000
Transcribed Image Text:MINGYU is trying to decide whether to accept a salary of P60,000 or a salary of P25,000 plus a bonus of 20% of net income after salaries and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be P75,000. What amount of income would be necessary so that MINGYU would consider the choices to be equal? Your answer EREN incurred P106,000 of direct labor and P11,000 of indirect labor. The proper journal entry to record these events would include a debit to Work in Process for: PO because Work in Process should be credited. PO because Work in Process is not affected. P11,000
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