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 The partners agreed to share profit according to the ratio of their original investment d. Partners agreed to share profits by allowing interest of 10% on their investments and dividing the remainder equally The partners agreed to share profits by allowing salaries of P400,000 for Lux and P280,000 for Jinx, and dividing the remainder equally. f. a. С. e. Partners agreed to share profits by paying salaries of P400,000 to Lux and P280,000 to Jinx allowing interest of 9% on their original investments, and dividing the remainder equally.
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 The partners agreed to share profit according to the ratio of their original investment d. Partners agreed to share profits by allowing interest of 10% on their investments and dividing the remainder equally The partners agreed to share profits by allowing salaries of P400,000 for Lux and P280,000 for Jinx, and dividing the remainder equally. f. a. С. e. Partners agreed to share profits by paying salaries of P400,000 to Lux and P280,000 to Jinx allowing interest of 9% on their original investments, and dividing the remainder equally.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Please provide solution/explanation together with the answer. Thank you!
Transcribed Image Text: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
a. The partners agreed to share profit equally
b.
Partners failed to agree on a profit-sharing arrangement
The partners agreed to share profit according to the ratio of their original investment
d. Partners agreed to share profits by allowing interest of 10% on their investments and dividing the remainder equally
e. The partners agreed to share profits by allowing salaries of P400,000 for Lux and P280,000 for Jinx, and dividing the
remainder equally.
f. Partners agreed to share profits by paying salaries of P400,000 to Lux and P280,000 to Jinx allowing interest of 9%
on their original investments, and dividing the remainder equally.
C.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 7 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education