30. The Grey and Redd Partnership was formed on January 2, 2021. Under the partnership agreement, each partner has an equal initial capital balance. Partnership net income or loss is allocated 60% to Grey and 40% to Redd. To form the Partnership, Grey originally contributed assets costing P30,000 with fair value of P60,000 on January 2, 2021, and Redd contributed P20,000 cash. Drawings by the parties during 2021 totaled P3,000 by Grey and P9,000 by Redd. The Partnership net income in 2021 was P25,000. What is the amount of bonus? * a. P20,000 bonus to Grey b. P20,000 bonus to Redd c. P40,000 bonus to Grey Ⓒd. P40,000 bonus to Redd

30. The Grey and Redd Partnership was formed on January 2, 2021. Under the partnership agreement, each partner has an equal initial capital balance. Partnership net income or loss is allocated 60% to Grey and 40% to Redd. To form the Partnership, Grey originally contributed assets costing P30,000 with fair value of P60,000 on January 2, 2021, and Redd contributed P20,000 cash. Drawings by the parties during 2021 totaled P3,000 by Grey and P9,000 by Redd. The Partnership net income in 2021 was P25,000. What is the amount of bonus? * a. P20,000 bonus to Grey b. P20,000 bonus to Redd c. P40,000 bonus to Grey Ⓒd. P40,000 bonus to Redd

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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Question

30. The Grey and Redd Partnership was formed on January 2, 2021. Under
the partnership agreement, each partner has an equal initial capital
balance. Partnership net income or loss is allocated 60% to Grey and
40% to Redd. To form the Partnership, Grey originally contributed assets
costing P30,000 with fair value of P60,000 on January 2, 2021, and Redd
contributed P20,000 cash. Drawings by the parties during 2021 totaled
P3,000 by Grey and P2,000 by Redd. The Partnership net income in 2021
was P25,000. What is the amount of bonus? *
a. P20,000 bonus to Grey
b. P20,000 bonus to Redd
c. P40,000 bonus to Grey
d. P40,000 bonus to Redd

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