3. Toys for All Company was set up on July 1,2018 with Barbie investing properties costing P320,000 but with a current fair value of P450,000. Hannah invested twice Barbie's contribution. Partners have no agreement on the division of profits and losses. The business incurred a net loss of P210,000 in 2018 but recovered to earn a net profit of P720,000 in 2019. It was further agreed that annual salaries be withdrawn by each as follows: Barbie, P80,000 and Hannah, P120,000. Directions: a) Distribute the 2018 loss and give the journal entry. Barbie Hannah Total Loss P210,000.00 For distribution 69,300.00 140,700.00 210,000.00 Total Distribution 69,300.00 140,700.00 Formula: Capital Contribution Percentage Share P450,000.00 P900,000.00 P1,350,000.00 33% 67% 100% b) Distribute the 2019 profit and give the journal entry. c) Prepare a statement of partners' equity each year.

3. Toys for All Company was set up on July 1,2018 with Barbie investing properties costing P320,000 but with a current fair value of P450,000. Hannah invested twice Barbie's contribution. Partners have no agreement on the division of profits and losses. The business incurred a net loss of P210,000 in 2018 but recovered to earn a net profit of P720,000 in 2019. It was further agreed that annual salaries be withdrawn by each as follows: Barbie, P80,000 and Hannah, P120,000. Directions: a) Distribute the 2018 loss and give the journal entry. Barbie Hannah Total Loss P210,000.00 For distribution 69,300.00 140,700.00 210,000.00 Total Distribution 69,300.00 140,700.00 Formula: Capital Contribution Percentage Share P450,000.00 P900,000.00 P1,350,000.00 33% 67% 100% b) Distribute the 2019 profit and give the journal entry. c) Prepare a statement of partners' equity each year.

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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