On April 1, 2022, Guy Comeau and Amelie Lavoi formed a partnership in Ontario. Comeau Lavoi Contribution $304,000 cash $202,000 land $144,900 building Profit sharing $184,800 salary allowance 5% of original capital investments 5% of original capital investments 40% of remaining 60% of remaining Cash withdrawal March 20, 2023 $129,800 Net Income during the year was $509,600 and was in the Income Summary account.On April 1, 2023 Travis Roberts invested $139,400 and was admitted to the partnership for a 20% interest in equity.Required:1. Prepare journal entries for the following dates.a. April 1, 2022
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On April 1, 2022, Guy Comeau and Amelie Lavoi formed a
| Comeau | Lavoi | |||
| Contribution | $304,000 cash | $202,000 land | ||
| $144,900 building | ||||
| Profit sharing | $184,800 salary allowance | |||
| 5% of original capital investments | 5% of original capital investments | |||
| 40% of remaining | 60% of remaining | |||
| Cash withdrawal March 20, 2023 | $129,800 | |||
Net Income during the year was $509,600 and was in the Income Summary account.
On April 1, 2023 Travis Roberts invested $139,400 and was admitted to the partnership for a 20% interest in equity.
Required:
1. Prepare
a. April 1, 2022
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- 10. As of July 1, 2020, Somine and Tamayo decided to form a partnership. Their balance sheets on this date are: Tamayo P37,500 225,000 202,500 270,000 P705,000 P735,000 P135,000 P240,000 Somine P15,000 540,000 Cash Accounts receivable Merchandise inventory Machinery and equipment 150,000 Total Accounts payable Somine, capital Tamayo, capital 570,000 495,000 P705,000 P735,000 Total The partners agreed that the machinery and equipment of Somine is under- depreciated by P15,000 and that of Tamayo by P45,000. Allowance for doubtful accounts is to be set up amounting to P120,000 for Somine and P45,000 for Tamayo. The partnership agreement provides for a profit and loss ratio and capital interest of 60% to Somine and 40% to Tamayo. How much cash must Somine invest to bring the partners' capital balances proportionate to their profit and loss ratio? a. P142,500 b. P52,500 C. P172,500 d. P102,500For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000 Question 5 If the profits are to be divided based on average capital, how much will be the share of AMMAR?On June 30, 2021, the A, B and C partnership had the following fiscal year- end balance sheet (in Philippine peso): Cash 4,000 Accounts payable 7,000 Accounts receivable 6,000 Loan from B 5,000 Merchandise inventory 14,000 A, Capital (20%) 14,000 Plant assets - net 12,000 B, Capital (30%) 10,000 6,000 C, Capital (50$) Loan to A 6,000 Total 42,000 42,000 The percentages shown are the residual profit and loss sharing ratios. The partners terminated the partnership on July I, 2021, and began the liquidation process,.. During July, the following events occurred: Receivables of P3,000 were collected The inventory was sold for P4,000 All available cash was distributed on July 31, except for P2,000 that was set aside for contingent expenses Questions: How much cash would B receive from the cash that is available for distribution on July 31?
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