3.14 Cue and Peed entered into a partnership on March 1, 200A. TheyT agreed that Cue, the managing partner was to receive a salary10 neallowance of P 24,000 per year and a bonus of 10% of the net profitafter the salary allowance but before the bonus. The balance is to be distributed in the ratio of their initial capital. Selected ledgeraccounts on December 31, 200A prior to adjustments showed thefollowing balances:Salesgns 22ol bns P 300,000ge gnisdao3,000 ollo)visoo 180,0001sini s10 48,000Sales Returns290swzunod ts Purchases 1Operating Expenses bs la01Stni o1o 48,000200,00000020,0001o g2290x Cue CapitalCue DrawingPeed Capital 0Peed DrawingInventories at year-end werebns I100,00010,000as follows: Officesupplies, P 810 and merchandise, P 50,000. Prepaid insurance of0P 1,200 and accrued expenses of P 400 are to be recognized.Depreciation of P 4,000 is to be provided.REQUIRED: Prepare the Statement of Partners ' Equity for the 10-month period ended December 31, 200A.iD d

Partnership Contract: Partnership contract is an agreement initiated between the partners who…

3.14 Cue and Peed entered into a partnership on March 1, 200A. They agreed that Cue, the managing partner was to receive a salary allowance of P 24,000 per year and a bonus of 10% of the net profit after the salary allowance but before the bonus. The balance is to b e distributed in the ratio of their initial capital. Selected ledger accounts on December 31, 200A prior to adjustments showed the M. following balances: oi Sales inssonge gohsla 2201 bas P 300,000 2990swol 3,000 ollo 0130uod visoo 180,000oo0 Sales Returns Purchases pouna Operating Expenses bs 12s1Stai sTo 48,000 boolle d Cue Capital Cue Drawing Peed Capital Peed Drawing 200,000 100020,000 bns Jor 000 100,000 10,000 as follows: Office Inventories at year-end were supplies, P 810 and merchandise, P 50,000. Prepaid insurance of P 1,200 and accrued expenses of P 400 are to be recognized. Depreciation of P 4,000 is to be provided. REQUIRED: Prepare the Statement of Partners' Equity for the 10- osn1 month period ended December 31, 200A. v

3.14 Cue and Peed entered into a partnership on March 1, 200A. They agreed that Cue, the managing partner was to receive a salary allowance of P 24,000 per year and a bonus of 10% of the net profit after the salary allowance but before the bonus. The balance is to b e distributed in the ratio of their initial capital. Selected ledger accounts on December 31, 200A prior to adjustments showed the M. following balances: oi Sales inssonge gohsla 2201 bas P 300,000 2990swol 3,000 ollo 0130uod visoo 180,000oo0 Sales Returns Purchases pouna Operating Expenses bs 12s1Stai sTo 48,000 boolle d Cue Capital Cue Drawing Peed Capital Peed Drawing 200,000 100020,000 bns Jor 000 100,000 10,000 as follows: Office Inventories at year-end were supplies, P 810 and merchandise, P 50,000. Prepaid insurance of P 1,200 and accrued expenses of P 400 are to be recognized. Depreciation of P 4,000 is to be provided. REQUIRED: Prepare the Statement of Partners' Equity for the 10- osn1 month period ended December 31, 200A. v

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A-1
ii.9
please answer number 5. thank you
Exercise 3-7. Distribution of Net Loss to partners Carmela and Ferdinand formed a partnership on January respectively. The partnership reported a net loss of P80,000. 1, 2023, with initial investments of P300,000 and P500,000, The partnership agreement provides that profit or loss shall be distributed accordingly: • Monthly salary of P10,000 and P5,000 respectively for Carmela and Ferdinand, . 10% interest on partners' original capital. . 20% bonus to Carmela based on net income before interest, and salary. •The remainder is shared in the ratio of 3:2 respectively. Required: Determine the share of Carmela and Ferdinand in the net loss.
Exercise 3-2 (Division of Profit; Interest on Average Capital) Danica and Jenson are partners. Their capital accounts during the fiscal year 2019 were as follows: Danica, Capital 120,000 1/1 Jenson, Capital 3/1 180,000 1/n 1,200,000 140,000 100,000 9/1 800,000 160,000 60,000 4/1 7/1 11/1 10/1 Profit of the partnership is P250,000 for the year. Determine the partners shared profit under the following assumptions: 1. Each partner is to be credited 12% interest on his average capital. 2. Any remaining profit or loss is to be divided equally.
Exercise 3-8. Distribution of Net Income to partners On March 1, 2023 Glenda and Harry formed GH Partnership with initial investment of P800,000 and P1,200,000, respectively. Glenda is appointed as the managing partner. The articles of co-partnership provides that profit or loss shall be distributed accordingly: 10% interest on original capital contribution ratio. Monthly salary of P10,000 and P5,000 respectively for Glenda and Harry. . Glenda shall be entitled to bonus equivalent to 10% of net income after interest, and salary. The remainder shall be distributed in ratio of 4:6 for Glenda and Harry, respectively. ● For the year ended December 31, 2023, the partnership reported net income of P1,000,000. Required: Compute for the share in net income of Glenda for the year ended December 31, 2023.
The balance in Xue's capital account includes an additional investment of $10,000 made on May 5, 20Y2. Instructions: 1. Prepare an income statement for 20Y2, indicating the division of net income. The partnership agreement provides for salary allowances of $38,000 to Ramirez and $46,000 to Xue, allowances of 10% on each partner's capital balance at the beginning of the fiscal year, and equal division of the remaining net income or a net loss. 2. prepare a statement of partnership equity for 20Y2. 3. Prepare a balance sheet as of the end of 20Y2.
Provide solution
Numbers 11-12 (Based on Book Values with Adjustments) On July 1, AA and BB decided to form a partnership. Balance sheet items for AA and BB on July 1 before adjustment are given below: Cash Accounts receivable Inventory Office supplies Equipment Accumulated depreciation Total assets Accounts payable Capital Total liabilities and capital 6,667 withdraw 3,000 invest 8,333 invest AA P 31,000 26,000 32,000 20,000 (9,000) P 100,000 B. AA-81,250 BB-75,000 P 28,000 72,000 P 100.000 C. AA-100,000 BB-75,000 BB P 50,000 20,000 AA and BB agreed to the following adjustments: (a) AA and BB's inventory is to be valued at P31,000 and P22,000, respectively; (b) Accounts receivable of P2,000 in AA's book and P1,000 in BB's books are uncollectible; D. AA 62,000 BB-93,000 24,000 5,000 (c) Accrued salaries of P4,000 for AA and P5,000 for BB are still to be recognized in the books; (d) Unused office supplies of AA amounted to P5,000 while that of BB amounted to P1,500; (e) Prepaid rent of P7,000 and P4,500…
Direction: Answer the following questions in problem 3: [6,7,8]
3.4 Vir and Housen are partners sharing profits in the ratio of 3:2. As per their agreement, each partner is allowed to withdraw P 30,000 annually. Both partners withdrew this amount during 200C.The net profit in 200C was P 120,000. REQUIRED: Show how the net profit will be divided if the withdrawals are considered as: a. Partners' drawings b. Partners' salaries
Terms of the partnership agreement: 1.1 The partners are entitled to a salary of R18 000 each per month. 1.2 Zozi and Sethu share profits in the ratio of 1:1 respectively. 2. Year-end adjustments: 2.1 An outstanding debt of R2 200 is irrecoverable and must be written off. The allowance for credit losses must be increased to R6 500. 2.2 An amount of R4 500 owed by a debtor was written off as irrecoverable during the year ended 29 February 20.1. The debtor has settled the amount previously written off in full on 25 February 20.2. This transaction is still to be recorded in the books of the business. 2.3 Depreciation for the year must still be provided as follows: Office equipment: 20% according to diminishing balance method. Vehicles: 15% according to straight-line method and have a R15 000 residual value. 2.4 Inventories on hand on 28 February 20.1: Merchandise R45 100 2.5 Only 65% of salaries were paid to partners during…