Please answer it in detailed and comprehensively with explanation. Please use proper accounting format. Problem 2Formation and Operations of a PartnershipAnna and Gerwin entered into a partnership on March 1, 2021 by investing Php 1,250,000 andPhp 750,000 respectively. They agreed that Anna, as managing partner, will receive a salary amountingto Php 360,000 per year and a bonus computed at 10 percent of the net income after salaries; thebalance of the profit will be distributed in the ratio based on their original capital contributions. OnDecember 1, 2021, the account balances were as follows:CashPhp700,000670,000450,0001,247,500615,0002,333,0001,250,000750,000200,000300,0002,333,00050,000696,000600,000Accounts ReceivableFurniture and FixturesInvestment PropertiesAccounts PayableSalesAnna, CapitalGerwin, CapitalAnna, DrawingGerwin, DrawingSalesSales ReturnsPurchasesOperating ExpensesOn December 31, 2021, the following were determined:Office SuppliesPrepaid InsuranceDepreciation still to be done, Depreciation rate for the Furniture and Fixtures was 20percent per year.Php25,0009,500Requirement:Prepare the Income Statement of the Anna-Gerwin Partnership as of December 31, 2021 andprovide a distribution schedule on the Net Income.1.2.Prepare the Capital Statement of Anna-Gerwin Partnership as of December 31, 2021.

An income statement is a financial statement that records the receipts/revenues and expenditures…

Anna and Gerwin entered into a partnership on March 1, 2021 by investing Php 1,250,000 and Php 750,000 respectively. They agreed that Anna, as managing partner, will receive a salary amounting to Php 360,000 per year and a bonus computed at 10 percent of the net income after salaries; the balance of the profit will be distributed in the ratio based on their original capital contributions. On December 1, 2021, the account balances were as follows: Php 700,000 670,000 450,000 Cash Accounts Receivable Furniture and Fixtures Investment Properties 1.247.500

Anna and Gerwin entered into a partnership on March 1, 2021 by investing Php 1,250,000 and Php 750,000 respectively. They agreed that Anna, as managing partner, will receive a salary amounting to Php 360,000 per year and a bonus computed at 10 percent of the net income after salaries; the balance of the profit will be distributed in the ratio based on their original capital contributions. On December 1, 2021, the account balances were as follows: Php 700,000 670,000 450,000 Cash Accounts Receivable Furniture and Fixtures Investment Properties 1.247.500

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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Question

Please answer it in detailed and comprehensively with explanation. Please use proper accounting format.

Problem 2
Formation and Operations of a Partnership
Anna and Gerwin entered into a partnership on March 1, 2021 by investing Php 1,250,000 and
Php 750,000 respectively. They agreed that Anna, as managing partner, will receive a salary amounting
to Php 360,000 per year and a bonus computed at 10 percent of the net income after salaries; the
balance of the profit will be distributed in the ratio based on their original capital contributions. On
December 1, 2021, the account balances were as follows:
Cash
Php
700,000
670,000
450,000
1,247,500
615,000
2,333,000
1,250,000
750,000
200,000
300,000
2,333,000
50,000
696,000
600,000
Accounts Receivable
Furniture and Fixtures
Investment Properties
Accounts Payable
Sales
Anna, Capital
Gerwin, Capital
Anna, Drawing
Gerwin, Drawing
Sales
Sales Returns
Purchases
Operating Expenses
On December 31, 2021, the following were determined:
Office Supplies
Prepaid Insurance
Depreciation still to be done, Depreciation rate for the Furniture and Fixtures was 20
percent per year.
Php
25,000
9,500
Requirement:
Prepare the Income Statement of the Anna-Gerwin Partnership as of December 31, 2021 and
provide a distribution schedule on the Net Income.
1.
2.
Prepare the Capital Statement of Anna-Gerwin Partnership as of December 31, 2021.

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