FINANCIAL ACCOUNTING
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11. Amber and Berta share profits and losses equally after a 10% interest on their average capital balances. Consider additional capital contributions and permanent withdrawals as made at the end of the month. Total net income after tax for 2019 is P320,000.
(see attached image, kindly answer it based on your knowledge, thank you!)
Direction: Give the entries to record the distribution based on the following two independent cases:
a) Partner's drawings are not used in determining the average capital balances
b) All changes in capital and drawing should be considered in determining the average capital balances.
12. Bert, Ben and Bello are partners in a sports equipment store with capital investments of P150,000, P200,000 and P300,000, respectively. Partnership agreement provides for the following monthly salary of P10,000 to Ben who is the managing partner, 12% interest on capital contributions, remaining profit to be allocated equally.
Direction: For Ben to be credited for a profit share of P200,000, how much should the company earn?
17. Beth, Luz and Ana divide
a) Net income earned was P480,000 and bonus is based on net income before salaries and bonus.
b) Net income earned was P480,000 and bonus is based on net income after salaries and bonus.
c) Net loss for the year was P480,000 and bonus based on net income before salaries and bonus.
Transcribed Image Text:drawings and capital accounts.
12. Bert, Ben and Bello are partners in a sports equipment store with capital investments of
following: monthly salary of P10,000 to Ben who is the managing partner, 12% interest
P150,000, P200,000 and P300,000, respectively. Partnership agreement provides for the
11. Amber and Berta share profits and losses equally after a 10% interest on their average
capital balances. Consider additional capital contributions and permanent withdrawals as
made at the end of the month. Total net income after tax for 2019 is P320,000.
January 1 capital balances
Additional investment of capital: March 15
Permanent withdrawal of capital: April 12
Drawings for each on October 28
Amber
P 105,000
20,000
Berta
P 140,000
( 15,000)
40,000
50,000
Direction: Give the entries to record the distribution based on the following tho
independent cases:
a) Partners' drawings are not used in determining the average capital balances.
b) All changes in capital and drawing should be considered in determining the averee
capital balances.
88
on capital contributions, remaining profit to be allocated equally.
Direction: For Ben to be credited for a profit share of P200,000, how much should the
company earn?
Transcribed Image Text:years.
17. Beth, Luz and Ana divide profit and loss in the ratio of 2:1:1 respectively, after givine.
monthly salary of P10,000 to each partner and bonus of 20% to Beth. Determine the sh4
of each partner and record the distribution on the following independent situations:
a) Net income earned was P480,000 and bonus is based on net income before salaries
and bonus.
b) Net income earned was P480,000 and bonus is based on net income after salaries and bonus
c) Net loss for the year was P480,000 and bonus based on net income before salaries and bonus
18
Refar
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- 1. Annual salary allowance to Gonzalez of $25,000. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Gonzalez and Van Home, 2:1. Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000. Required: How much net income should be distributed to Gonzalez and Van Horne? Gonzalez: Van Horne: Sarrow_forwardExposing this to me step by step how I you got 5850arrow_forwardRequired information [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $80,000, $112,000, and $128,000, respectively, in a partnership. During its first calendar year, the firm earned $249,000. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $249,000 net income under each of the following separate assumptions. 2. The partners agreed to share income and loss in the ratio of their beginning capital investments. Complete this question by entering your answers in the tabs below. Appropriation of profits Allocate $249,000 net income in the ratio of their beginning capital investments. Note: Do not round intermediate calculations. Supporting Computations General Journal Ries Bax Thomas Percentage of Total Equity X Income Summary Allocated Income to Capitalarrow_forward
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