In January 2021, Lux and Jinx agreed to produce and sell chocolate candies, and form a partnership called "Wild-Rift Partneship". Lux contributed P2,400,000 in cash to the business. Jinx contributed the building and equipment, valued at P2,200,000 and P1,400,000 respectively. The partnership had profits of P840,000 during 2021 but was less successful during 2022, when profit was only P400,000. Required: 1. Prepare the journal entry to record the investment of both partners 'in the partnership. 2. Determine the share of profit for each partner in 2021 and 2022 under each of the The partners agreed to share profit equally b. Partners failed to agree on a profit-sharing arrangement c. The partners agreed to share profit according to the ratio of their original investment a.

In January 2021, Lux and Jinx agreed to produce and sell chocolate candies, and form a partnership called "Wild-Rift Partneship". Lux contributed P2,400,000 in cash to the business. Jinx contributed the building and equipment, valued at P2,200,000 and P1,400,000 respectively. The partnership had profits of P840,000 during 2021 but was less successful during 2022, when profit was only P400,000. Required: 1. Prepare the journal entry to record the investment of both partners 'in the partnership. 2. Determine the share of profit for each partner in 2021 and 2022 under each of the The partners agreed to share profit equally b. Partners failed to agree on a profit-sharing arrangement c. The partners agreed to share profit according to the ratio of their original investment a.

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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