On January 1 , FRED and GEMMO formed a partnership by contributing cash of P300,000 and P360,000 , respectively . On August 1, Fred contributed an additional cash of P45,000 . On June 1, Gemmo contributed machinery with a fair market value of P60,000 and a net book value of P90,000 when contributed . On July 1, Fred and Gemmo each withdrew 30,000 . 1. What is the ending capital of Fred ? 2. What is the ending capital of Gemmo ?

On January 1 , FRED and GEMMO formed a partnership by contributing cash of P300,000 and P360,000 , respectively . On August 1, Fred contributed an additional cash of P45,000 . On June 1, Gemmo contributed machinery with a fair market value of P60,000 and a net book value of P90,000 when contributed . On July 1, Fred and Gemmo each withdrew 30,000 . 1. What is the ending capital of Fred ? 2. What is the ending capital of Gemmo ?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 4CE

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On January 1, FRED and GEMMO formed a partnership by contributing cash of P300,000 and P360,000 , respectively . On August 1, Fred contributed an additional cash of P45,000 . On June 1 , Gemmo contributed machinery with a fair market value of P60,000 and a net book value of P90,000 when contributed . On July 1, Fred and Gemmo each withdrew 30,000 . 1. What is the average capital of Fred ? 2. What is the average capital of Gemmo?
on January 1 freed and genmo formed a partnership by contributing 405000 and 270000, respectively. On February 1. Fred contributed 135000 on May 1 genmo contributed machinery with fair market of 90000 and a net book value of 75000 when they contributed on July 1, Fred and Genmo each withdrew 40,000 what is the average capital of Fred and Genmo
On January 1, FRED and GEMMO formed a partnership by contributing cash of P405,000 and P270,000, respectively. On February 1. Fred contributed an additional P135,000. On May 1, Gemmo contributed machinery with a fair market value of P90,000 and a net book value of P75,000 when contributed. On November 1 Gemmo contributed an additional P45,000 cash to the partnership. The partnership reported a net income of P257,400 for the year and the profit or loss agreement are as follows: Interest at 6% is allowed on average capital balances; Salaries if P2,700 per month to each partner; Bonus to Fred of 10% of net income after interest, salaries and bonus; and Balance to be divided in the ratio of 6:4 to Fred and Gemmo, respectively. Required: Prepare a schedule for the division of net profit for 2016 with supporting computations when appropriate
On January 1 , FRED and GEMMO formed a partnership by contributing cash of P405,000 and P270,000 , respectively . On February 1. Fred contributed an additional P135,000 . On May 1 , Gemmo contributed machinery with a fair market value of P90,000 and a net book value of P75,000 when contributed . On November 1 Gemmo contributed an additional P45,000 cash to the partnership . The partnership reported a net income of P257,400 for the year and the profit or loss agreement are as follows: Interest at 6% is allowed on average capital balances Salaries if P2,700 per month to each partner Bonus to Fred of 10% of net income and Balance to be divided in the ratio of 6:4 to Fred and Gemmo , respectively Required: 1. Table showing the computation of average capital balances of each partner . 2. Schedule for the division of net profit for 2016 3. Journal Entries to record a . Entry upon formation A. Entry upon formation B. Additional formation C. Net Income D. Distribution of Income
On January 1, FRED and GEMMO formed a partnership by contributing cash of P405,000 and P270,000, respectively. On February 1. Fred contributed an additional P135,000. On May 1, Gemmo contributed machinery with a fair market value of P90,000 and a net book value/cost of P75,000 when contributed. On November 1 Gemmo contributed an additional P45,000 cash to the partnership. Profit or loss agreement are as follows: • Interest at 6% is allowed on average capital balances; • Salaries of P2,700 per month to each partner; • Bonus to Fred of 10% of net income; and • Balance to be divided in the ratio of 6:4 to Fred and Gemmo, respectively. ASSUMPTIONS: 1. The company had a revenue of 458,300 and expenses of 227, 900 resulting in a profit of 257,400. 2. The company had a revenue of 227, 900 and expenses of 458,300 resulting in a loss of 257,400. 3. The company had a revenue of 458,300 and expenses of 406,325 resulting in a profit of 51,975. Required: 1. Table showing the computation of average…
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On January 1, FRED and GEMMO formed a partnership by contributing cash of 405,000 and 270,000, respectively. On February 1. Fred contributed an additional 135,000. On May 1, Gemmo contributed machinery with a fair market value of 90,000 and a net book value of 75,000 when contributed. On November 1 Gemmo contributed an additional 45,000 cash to the partnership. The partnership reported a net income of 257,400 for the year and the profit or loss agreement are as follows: • Interest at 6% is allowed on average capital balance; • Salaries if 2,700 per month to each partner; • Bonus to Fred of 10% of net income after interest, salaries and bonus; and • Balance to be divided in the ratio of 6:4 to Fred and Gemmo, respectively. Required: Prepare a schedule for the division of net profit for 2016 with supporting computations when appropriate.
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