FINANCIAL ACCT-CONNECT
8th Edition
ISBN: 9781266627903
Author: Wild
Publisher: INTER MCG
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Given the following information about AKing & Lee form a partnership. The partnership agreement provides for (1) salary allowances of $8,400 to King and $6,000 to Lee , (2) interest on capital of 10%, and (3) the remaining income will be allocated equally . Capital balances on January 1 were King $28,000 , and Lee $24,000 . In 2018 , partnership net income is $22,000 . Required: Allocate net income between King and LeeB partnership A B Capital 200,000 150,000 Interest on capital is 10% Net income 50,000 Required: Allocate net income between A and B assuming that any remaining income will be allocated equally.
XX, YY and ZZ formed a partnership on January 1, 2015. Each contributed P120,000
3.
Salaries were to be allocated as follows:
XX
YY
zz
P30,000
P30,000
P45,000
Drawings were equal to salaries and be taken out evenly throughout the year
With sufficient partnership net income, XX and YY could split a bonus equal to 25
percent of partnership net income after salaries and bonus (in no event could the bonus go
below zero).
Remaining profits were to be split as follows: 30% for XX; 30% for YY and 40% for Zz
For the year, partnership net income was P120,000
Compute the ending capital for each partner:
XX, P155,100; YY, P155,100; ZZ, P169,800
а.
b.
XX, P126,000; YY, P126,000; ZZ, P124,500
XX, P125,500; YY, P125,500; ZZ, P124,000
С.
d.
XX, P125,100; YY, P125,100; ZZ, P124,800
The partnership contract for the SDF and MGB Partnership, a generat
partnership, provided for annual salaries of P140,000 and P175,000 to SDF
and MGB, respectively, with the resulting profit or loss to be divided
equally.
1.
Profit before salaries for the year ended June 30, 2018 was P315,000.
Required:
Give the entry to transfer income summary account balance to drawing
accounts of the partners.
Chapter D Solutions
FINANCIAL ACCT-CONNECT
Ch. D - Prob. 1DQCh. D - Prob. 2DQCh. D - Prob. 3DQCh. D - Prob. 4DQCh. D - Prob. 5DQCh. D - Prob. 6DQCh. D - Prob. 7DQCh. D - Prob. 8DQCh. D - Prob. 9DQCh. D - Prob. 10DQ
Ch. D - Prob. 11DQCh. D - Prob. 12DQCh. D - Prob. 1QSCh. D - Prob. 2QSCh. D - Prob. 3QSCh. D - Prob. 4QSCh. D - Prob. 5QSCh. D - Prob. 6QSCh. D - Prob. 7QSCh. D - Prob. 8QSCh. D - Prob. 1ECh. D - Prob. 2ECh. D - Prob. 3ECh. D - Prob. 4ECh. D - Prob. 5ECh. D - Prob. 6ECh. D - Prob. 7ECh. D - Prob. 8ECh. D - Prob. 9ECh. D - Prob. 10ECh. D - Prob. 11ECh. D - Prob. 12ECh. D - Prob. 1PSACh. D - Prob. 2PSACh. D - Prob. 3PSACh. D - Prob. 4PSACh. D - Prob. 5PSACh. D - Prob. 1PSBCh. D - Prob. 2PSBCh. D - Prob. 3PSBCh. D - Prob. 5PSBCh. D - Prob. 3BTN
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- Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances prior to Tammys admission are $50,000 each. Prepare a schedule showing how the bonus should be divided among the three, assuming the profit or loss agreement will be 1:3 once Tammy has been admitted and her contribution is: A. $20,000 B. $80,000 C. $50,000. In addition, show the resulting journal entries to each of the three partners capital accounts.arrow_forwardOn March 1, 2021, Candace and Noreen formed a partnership with each contributing the following assets: NOREEN CANDACE Cash 140,000 60,000 Office Equipment 150,000 50,000 Building 450,000 Furniture and Fixtures 20,000The building is subject to a mortgage loan of P180,000, which is to be assumed by the partnership. The partnership agreement provides that Candace and Noreen share profits and losses at 30% and 70%, respectively. Assuming that the partners agreed to bring their respective capital in proportion to their P&L ratios, and using Noreen capital as the base. Compute the capital account balance of Noreen as of March 1, 2021 Compute the additional cash to be invested by Candacearrow_forwardA and B formed a partnership on February 28, 2022 by contributing P430,000 and P570,000, respectively. The operations of the partnership for 2022 resulted to a profit of P375,000. Partners A and B agreed to the following allocation scheme: a. Weekly salary allowance of P1,000 is to be given to Partner A; b. 5% interest is to be credited to the partners; c. Bonus of 10% based on profit after salaries and interest to B. d. Residual income is to be allocated equally. How should the profit be allocated to A and B, respectively?arrow_forward
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