C. Eastwood, A. North, and M. West are manufacturers' representatives in the architecture business. Their capital accounts in the ENW partnership for 20X1 were as follows: 9/1 C. Eastwood, Capital 8,800 1/1 5/1 30,700 6,700
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Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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- Required: For each of the following independent income-sharing agreements, prepare anincome distribution schedule.a. Salaries are P15,000 to East, P20,000 to North, and P18,000 to West. East receives abonus of 5 percent of net income after deducting his bonus. Interest is 10 percent of endingcapital balances. Any remainder is divided by East, North, and West in a 3:3:4 ratio. Netincome was P78,960.b. Interest is 10 percent of weighted average capital balances. Salaries are P24,000to East, P21,000 to North, and P25,000 to West. North receives a bonus of 10 percent of netincome after deducting the bonus and his salary. Any remainder is divided equally. Net incomewas P68,080.c. West receives a bonus of 20 percent of net income after deducting the bonus and thesalaries. Salaries are P21,000 to East, P18,000 to North, and P15,000 to West. Interest is 10percent of beginning capital balances. Any remainder is divided by East, North, and West inan 8:7:5 ratio. Net income was P92,940.JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity’s earnings. Theincome for the year before bonus and tax is ₱8,750,000. The income tax rate is 30% of income after bonus.Requirements: Determine the BONUS under each of the following independent assumptions:A. Bonus is based on income before bonus and before tax.B. Bonus is based on income after bonus and after tax.C. Bonus is based on income after bonus but before tax.D. Bonus is based on income after tax but before bonusJIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity’s earnings. Theincome for the year before bonus and tax is ₱8,750,000. The income tax rate is 30% of income after bonus.Requirements:9. Determine the BONUS under each of the following independent assumptions:A. Bonus is based on income before bonus and before tax.B. Bonus is based on income after bonus and after tax. C. Bonus is based on income after bonus but before tax.D. Bonus is based on income after tax but before bonus
- 1. A lump sum benefit is payable on termination of service and equal to 1 per cent of final salary for each year of service. The salary in year 1 is P10,000 and is assumed to increase at 7 per cent (compound) each year. The discount rate used is 10 per cent per year. The entity does not fund its obligation to pay lump-sum benefits. The employee is expected to leave at the end of year 5. The change in year 2 in the net defined benefit liability that arises from the passage of time (interest cost) is Group of answer choices Nil P131 P98 P9 The increase in the present value of the defined benefit obligation resulting from employee service in year 2 (current service cost) is Group of answer choices P131 P98 P89 P196 The amount to be recognized as expense in the second year is Group of answer choices P98 P107 P131 P196A lump sum benefit is payable on termination of service and equal to 1 per cent of final salary for each year of service. The salary in year 1 is P10,000 and is assumed to increase at 7 per cent (compound) each year. The discount rate used is 10 per cent per year. The entity does not fund its obligation to pay lump-sum benefits. The employee is expected to leave at the end of year 5. The increase in the present value of the defined benefit obligation resulting from employee service in year 2 (current service cost) is Group of answer choices P98 P196 P89 P131 A lump sum benefit is payable on termination of service and equal to 1 per cent of final salary for each year of service. The salary in year 1 is P10,000 and is assumed to increase at 7 per cent (compound) each year. The discount rate used is 10 per cent per year. The entity does not fund its obligation to pay lump-sum benefits. The employee is expected to leave at the end of year 5. The amount to be…A lump sum benefit is payable on termination of service and equal to 1 per cent of final salary for each year of service. The salary in year 1 is P10,000 and is assumed to increase at 7 per cent (compound) each year. The discount rate used is 10 per cent per year. The entity does not fund its obligation to pay lump-sum benefits. The employee is expected to leave at the end of year 5. The increase in the present value of the defined benefit obligation resulting from employee service in year 2 (current service cost) is a P131 b P196 c P98 d P89
- A lump sum benefit is payable on termination of service and equal to 1 per cent of final salary for each year of service. The salary in year 1 is P10,000 and is assumed to increase at 7 per cent (compound) each year. The discount rate used is 10 per cent per year. The entity does not fund its obligation to pay lump-sum benefits. The employee is expected to leave at the end of year 5. The change in year 2 in the net defined benefit liability that arises from the passage of time (interest cost) isJIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity’s earnings. The income for the year before bonus and tax is ₱8,750,000. The income tax rate is 30% of income after bonus. Determine the BONUS under each of the following independent assumptions: A. Bonus is based on income before bonus and before tax.B. Bonus is based on income after bonus and after-tax.Cardo reported the following for the taxable year: Basic salary 900,000; supplemental compensation 150,000; mandatory contributions (SSS, etc) 35,000; Rice allowance 35,000; Uniform allowance 10,000; 13th month pay 85,000. How much is the total REGULAR COMPENSATION? 900,000 1,050,000 1,135,000 How much is the total NON-TAXABLE DE MINIMIS benefits (within the ceiling amount)? 45,000 30,000 zero How much is the total TAXABLE COMPENSATION? 1,060,000 1,025,000 1,015,000 Please provide just basic computation. Thank youuu!
- Nature Company has an agreement to pay each sales manager a bonus of 5% of the entity's earnings and each sales personnel 2%. Nature has one sales manager and two sales personnel. The income for the year before bonus and tax is P5,250,000. The income tax rate is 30% of income after bonus. The bonus is based on net income before bonus but after tax. How much is the bonus of each sales personnel? (round the final answer to the nearest whole number)Wuy, who is single, reports the following items for 2021: Salary $25,000 Interest income 8,000 Itemized deductions ($27,000 attributable to deductible casualty loss) (32,000) What is Wuy's net operating loss for 2021? a.$0 b.($2,000) c.($1,000) d.($7,000)Johnny received a salary of 73,000 during the year consisting of: 60,000 basic salary, 8,000 overtime pay, 5,000 13th month pay. Compute Johnny's taxable income * 60,000 68,000 O 73,000 Mr. Juanito had the following income in 2021: Compensation Income, net of 77,000 SSS, PHIC,HDMF and union Dues - 300,000; Supplemental compensation income - 30,000; 13th month pay and other benefits - 25,000 * 402,000 330,000 375,000 380,000