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1. If each partner received P30,000 (ignore income tax) on the residual profit after salaries, interest and bonus, the net income reported by the partnership during the 1ª 6-months of operation is: 2. Considering your answer in No. 1, the capital balance of Marvin on December 31, 2018 is:

1. If each partner received P30,000 (ignore income tax) on the residual profit after salaries, interest and bonus, the net income reported by the partnership during the 1ª 6-months of operation is: 2. Considering your answer in No. 1, the capital balance of Marvin on December 31, 2018 is:

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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PROBLEM V Marvin, Jerwin and Grace, formed a partnership on July 1, 2018 with P200,000, P300,000 and P450,000 capital investments, respectively. The partners agreement stated that profits and losses are to be shared equally by the partners after consideration for the following: a. Annual salaries to partners: P60,000 for Marvin, P48,000 for Jerwin and P36,000 for Grace. b. 10% interest on average capital. c. 10% net profit after salaries and interest as bonus to Marvin as the managing partner. Additional information: a. On October 1, 2018, Marvin made additional investment of P60,000. b. Grace invested P30,000 on December 1, 2018. 1. If each partner received P30,000 (ignore income tax) on the residual profit after salaries, interest and bonus, the net income reported by the partnership during the 1* 6-months of operation is: 2. Considering your answer in No. 1, the capital balance of Marvin on December 31, 2018 is:
Transcribed Image Text:PROBLEM V Marvin, Jerwin and Grace, formed a partnership on July 1, 2018 with P200,000, P300,000 and P450,000 capital investments, respectively. The partners agreement stated that profits and losses are to be shared equally by the partners after consideration for the following: a. Annual salaries to partners: P60,000 for Marvin, P48,000 for Jerwin and P36,000 for Grace. b. 10% interest on average capital. c. 10% net profit after salaries and interest as bonus to Marvin as the managing partner. Additional information: a. On October 1, 2018, Marvin made additional investment of P60,000. b. Grace invested P30,000 on December 1, 2018. 1. If each partner received P30,000 (ignore income tax) on the residual profit after salaries, interest and bonus, the net income reported by the partnership during the 1* 6-months of operation is: 2. Considering your answer in No. 1, the capital balance of Marvin on December 31, 2018 is:
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