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 Pa0,000 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

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 Pa0,000 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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...

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The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have capital balances of $45,000 each. Prepare a schedule showing how the bonus should be divided if Ashanti joins the partnership with a $60,000 investment. The partners new agreement will share profit and loss in a 1:3 ratio.
The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
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