Hi! Good day. Please answer it in detailed and comprehensively with explanation. Please use proper accounting format.I appreciate the updated solution you provided to my other 2 questions. Thank you PROBLEM A Distribution of Profits or Losses Based on Partners’ AgreementMandatory Problem to be solved by every groupLucas, Thomas, and Stephen are partners in an architectural firm. Their capital accounts were asfollows:PartnerDateDebitCreditLucasLucasLucasJanuary 1, 2021May 1, 2021September 1, 2021300,000.0060,000.0080,000.00ThomasThomasThomasThomasJanuary 1, 2021March 1, 2021July 1, 2021September 1400,000.0090,000.0050,000.0040,000.00StephenStephenStephenStephenJanuary 1April 1June 1500,000.0070,000.0030,000.00August 1120,000.00Required:For each of the following independent profit and loss agreement, prepare the income distributionschedule:Salaries are provided as follows: Lucas – Php 150,000, Thomas – Php 200,000, and Stephen-Php 180,000. Special Compensation is given to Lucas amounting to 5 percent of the NetIncome before distribution of salaries. Interest is 10 percent of the partners' ending capitalbalances. Lucas, Thomas, and Stephen will divide the remainder in a 3:3:4 ratio. Net incomeas of December 31, 2021 was Php 989,600.1.Interest is 10 percent of average capital balances. Salaries are provided as follows: LucasPhp 240,000, Thomas – Php 210,000, and Stephen – Php 250,000. Thomas receives a specialcompensation which is 10 percent of net income after salaries and interest. Any remainder isdivided equally. Net income as of December 31, 2021 was Php 1,180,800.2.Interest is 10 percent of beginning capital balances. Salaries are provided as follows: LucasPhp 210,000, Thomas – Php 180,000, and Stephen – Php 150,000. Stephen receives a specialcompensation which is 15 percent of net income after salaries and interest. Any remainder isdivided in the following ratio: 8:7:5 ratio.Php 929,400.3.Net income as of December 31, 2021 was

Distribution of Net Income to Partners It is important to provide separate calculation which are…

PROBLEM A Distribution of Profits or Losses Based on Partners' Agreement Mandatory Problem to be solved by every group Lucas, Thomas, and Stephen are partners in an architectural firm. Their capital accounts were as follows: Partner Date Debit Credit Lucas Lucas Lucas January 1, 2021 May 1, 2021 September 1, 2021 300,000.00 60,000.00 80,000.00 Thomas Thomas January 1, 2021 March 1, 2021 400,000.00 90,000.00 Thomas July 1 2021 50.000 0o

PROBLEM A Distribution of Profits or Losses Based on Partners' Agreement Mandatory Problem to be solved by every group Lucas, Thomas, and Stephen are partners in an architectural firm. Their capital accounts were as follows: Partner Date Debit Credit Lucas Lucas Lucas January 1, 2021 May 1, 2021 September 1, 2021 300,000.00 60,000.00 80,000.00 Thomas Thomas January 1, 2021 March 1, 2021 400,000.00 90,000.00 Thomas July 1 2021 50.000 0o

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 14E

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NAME: SCORE: SECTION: PROFESSOR: Problem #12 Admission by Investment of Assets Magdaraog and Mercado are partners in Magdaraog and Mercado Partnership with capital balances of P550,000 and P350.000, respectively: they share income and loss in the ratio 1:3, respectively. The partners are considering the admission of San Pedro. Required: Prepare the entries to record the admission of San Pedro under each of the following independent situations: 1. San Pedro invested P100,000 cash in the partnership for a one-tenth interest. The net assets of the partnership are fairly valued. 2. San Pedro invested P140,000 cash in the partnership for a one-eight interest. Assets of the partnership are fairly valued except for equipment, which is undervalued by P80,000. Net assets of the partnership are to be revalued and San Pedro is to be admitted. 3. San Pedro is to receive a one-tenth interest in the partnership upon investing P180,000 cash. Net assets of the partnership are fairly valued. San Pedro…
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developed in part a(3). etd 189fc64d53a0a6a71 PROBLEM C.11 Dividing Partnership Profit and LossLOC-10 Rothchild Furnishings, Inc., has three partners-Axle, Brandt, and Conrad. At the beginning of the current year their capital balances were: Axle, $180,000; Brandt, $140,000; and Conrad, $80,000. The partnership agreement provides that partners shall receive salary allowances as follows: Axle, $10,000; Brandt, $50,000; and Conrad, $28,000. The partners shall also be allowed 12 percent interest annually on their capital balances. Residual profit or loss is to be divided: Axle, one-half; Brandt, one-third; and Conrad, one-sixth. Instructions Prepare separate schedules showing how income will be divided among the three partners in each of the following cases. The figure given in each case is the annual partnership net income or loss to be allocated among the partners. Round calculations to the nearest dollar. a. Income of $526,000. b. Income of $95,000. c. Loss of $32,000. PROBLEM C.12 Who…
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tnership s. Is th Chapter 2-Nature and Formation of a Partnership EXERCISES Exercise 2-1 (Cash and Non-cash Contributions) Give the entry to record the investment of Alonzo into the partnership under each of the following independent assumptions: a. ers int b. conter c. How d. does Cash of P400,000. 63 Accounts receivable of P500,000 with an allowance for uncollectible accounts of P50,000. Inventories that cost P300,000 using the moving average method accepted by the partnership at its FIFO value of 80% of average cost. Equipment that cost P900,000 with a book value of P300,000 after four years of use without salvage value. The equipment should have been depreciated over a 10-year useful life. Exercise 2-2 (Cash and Net Asset Contributions)
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