On January 1, Mark and Rodiel formed a partnership with the former contributing P180,000 cash and the latter contributing machineries (with carrying value of P64,000 and fair value of P52,000) and inventory (with cost of $24,000 and fair value of P30,000). They agreed to value machineries and inventory at P48,000 and P32,000, respectively. During the year, Rodiel made an additional investment of P20,000 on May 1 and P15,000 on July 1. On October 1, Rodiel permanently withdrew P25,000. Mark had no additional investment nor withdrawals during the year. The share of Mark in the P100,000 net income of the partnership for the year using average capital as the basis would be closest to

On January 1, Mark and Rodiel formed a partnership with the former contributing P180,000 cash and the latter contributing machineries (with carrying value of P64,000 and fair value of P52,000) and inventory (with cost of $24,000 and fair value of P30,000). They agreed to value machineries and inventory at P48,000 and P32,000, respectively. During the year, Rodiel made an additional investment of P20,000 on May 1 and P15,000 on July 1. On October 1, Rodiel permanently withdrew P25,000. Mark had no additional investment nor withdrawals during the year. The share of Mark in the P100,000 net income of the partnership for the year using average capital as the basis would be closest to

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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Jpea, Jic, and Jfenix formed a partnership and named it ESBIEYEY. At the end of the year, the partnership earned a profit of P 1,000,000. The capital balances are P250,000, P280,000, and P270,000 for Jpea, Jic, and Jfenix, respectively. The partners agreed to distribute the profit as follows: Interest to ending capital of 10% will be given Jpea and Jic will be given a salary amounting to P 150,000 each Jfenix will be given a bonus of 10% of net income after interest, salary and bonus Remaining profit is to be distributed equally How much is the bonus given to Jfenix? A. P 67,000 B. P 62,000 C. P 56,364 D. P 60,909 How much is Jpea’s share in net income? A. P 365,879 B. P 360,879 C. P 362,879 D. P 364,879 How much is Jic’s share in net income? A. P 360,879 B. P 362,879 C. P 364,879 D. P 365,879
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