6. Figueroa and Aguhob are partners in a CPA Review School. They share profits in the ratio of 2:1. OnJuly 1, 2019 they admitted Figueroa's son Doblas as a partner. Figueroa guaranteed that Doblas' profitshare would not be less than P25,000 for the six months to Dec. 31, 2019. The profit sharingarrangements after Doblas' admission is as follows: Figueroa 50%, Aguhob 30% and Doblas 20%. Theprofit for the year ended Dec. 31,2019 was P240,000 accruing evenly over the year. What shouldFigueroa's total profit share be for the year ended Dec. 31,2019?a. P140, 000b. P139,000c. P114,000d. 139,375Set 21. Which of the following best describes the nature of salary and interest allowances in a partnershipprofit and loss sharing agreement?a. A means of determining reasonable monthly withdrawals by each partner.b. The amount upon which each partner will have to pay personal income tax.c. A means of distributing profit in relation to services rendered and capital invested by partners.d. Expenses of the business that should be deducted from revenue in determining profit.2. A statement of changes in partner's equity should include all the following excepta. Beginning capital balances.b. Investments during the period.c. Partner's payment of loans.d. Withdrawals during the period.e. Ending capital balances.f. Share of profit for the period.3. Partners Lusterio and Advincula receive a salary of P150,000 and P300,000, respectively, and shareprofit and losses in a 2:1 ratio, respectively. If the partnership suffered a P150,000 loss in 2019, by howmuch would Lusterio's account decrease?a. P400,000b. P250,000c. P200,000d. P100,000 Set 11. Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratio of 3:2:1. Thepartnership agreement provides for 8% interest on capital and a salary for Manongsong of P80,000 peranmum. Profit for 2019 was P840,000 and the year end balances on partner's capital accounts are asfollows: Ceradoy, P2000,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran's shareof residual profits for 2019?a. P120,400b. P126,670с. Р130,000d. P140,0002. Malaluan and Baral are in partnership. They share profits in the ratio 3:2 and close their accounts onJune 30 each year. On Jan. 1, 2019, Castro joined the partnership. The profit-sharing ratio was revised tobecome Malaluan 50%, Baral 25% and Castro 25%, after providing for annual salaries as follows: Baral,P20,000 and Castro, P12,000. The partnership profit for the year ended June 30, 2019 was P480,000,accruing evenly over the year. What are the partners' total share in profits for the year ended June 30,2019?MalaluanBaralCastroa. P256,000b. P248,000с. Р264,000d. P264,000P162,000 P62,000P168,000P166,000P156,000P64,000P66,000P60,0003. Refozar, Martinez and Magsino formed a partnership. It's on a calendar year basis. The profit-sharingarrangements are as follows:Until June 30, 2019, the annual salaries are provided as follows: Martinez, P40,000 andMagsino, P20,000. The residual profit will be shared in the ratio of 6:2:2.From July 1,2019, the salaries will be discontinued and the profit to be divided in the revised ratioof 5:3:2.Profit for the year ended Dec. 31, 2019 was P400,000 before charging partners' salaries, accruing evenlythrough the year, and after charging an expense of P40,000, which it was agreed related wholly to thefirst six months of the year. How should the profit for the year be divided among the partners?MagsinoP88,000P84,000P88,000P88,000RefozarMartinezа. Р182,000b. P200,000с. Р198,000d. P180,000P130,000P116,000P118,000P132,000

Hi student Since there are multiple questions, we will answer only first question.

6. Figueroa and Aguhob are partners in a CPA Review School. They share profits in the ratio of 2:1. On July 1, 2019 they admitted Figueroa's son Doblas as a partner. Figueroa guaranteed that Doblas' profit share would not be less than P25,000 for the six months to Dec. 31, 2019. The profit sharing arrangements after Doblas' admission is as follows: Figueroa 50%, Aguhob 30% and Doblas 20%. The profit for the year ended Dec. 31,2019 was P240,000 accruing evenly over the year. What should Figueroa's total profit share be for the year ended Dec. 31,2019? a. P140, 000 b. P139,000 c. P114,000 d. 139,375

6. Figueroa and Aguhob are partners in a CPA Review School. They share profits in the ratio of 2:1. On July 1, 2019 they admitted Figueroa's son Doblas as a partner. Figueroa guaranteed that Doblas' profit share would not be less than P25,000 for the six months to Dec. 31, 2019. The profit sharing arrangements after Doblas' admission is as follows: Figueroa 50%, Aguhob 30% and Doblas 20%. The profit for the year ended Dec. 31,2019 was P240,000 accruing evenly over the year. What should Figueroa's total profit share be for the year ended Dec. 31,2019? a. P140, 000 b. P139,000 c. P114,000 d. 139,375

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Nancy and Peter enter into a partnership and decide to share profits and losses as follows: 1 The first allocation is a salary allowance with Nancy receiving $16,000 and Peter receiving $14,000. 2. The second allocation is 20% of the partners' capital balances at year end. On December 31, 2019, the capital balances for Nancy and Peter are $88,000 and $25,000, respectively 3. Any remaining profit or loss is allocated equally. For the year ending December 31, 2019, the partnership reported a net loss of $95,000. What is Peter's share of the net loss? OA. $40,200 OB. $7,300 OC. $21,200 OD. $19,000
Ben and Carrie enter into a partnership agreement whereby they undertake to share profits according to the following rules: (a) Ben and Carrie will receive a salary of $1,500 and $13,500 respectively (b) The next allocation is based on 20% of the parner's capital balances ('c) Any remaining profit or loss is to be borne completely by Carrie The partnership's Net Income for the first year is $40,000. Ben's capital balance is $90,000 and Carrie's capital balance is $10,000 as at the end of the year. Calculate the share of profit/loss to be borne by Carrie. (it's asking for the total share of the Net Income Carrie will obtain) A $ 4,000.00 B $ 17,500.00 C $ 19,500.00 D $ 20,500.00
Sandhill Accountants is a partnership with three partners. On February 29, 2024, the three partners, M. Anderson, H. White, and A. Martin, have capital balances of $80,940, $68,520, and $40,800, respectively. The profit and loss ratio is 4: 3:1. On March 1, 2024, White withdraws from the partnership and the remaining partners agree to pay him $85,680 cash from the partnership assets. After White leaves, Anderson and Martin agree to a 4:2 profit ratio. During the year ended February 28, 2025, the partnership earns a profit of $22,860. Neither Anderson nor Martin makes any withdrawals because the partnership is short of cash after paying White. On March 1, 2025, Anderson and Martin agree to admit C. Clark to the partnership with a 45% interest for $71,400 cash. After Clark is admitted, the new profit and loss ratio will be 4:2:5 for Anderson, Martin, and Clark, respectively. Journalize the withdrawal of White from the partnership
Kimble, Sykes, and Gerard open an accounting practice on January 1, 2019, in Chicago, Illinois, to be operated as a partnership. Kimble and Sykes will serve as the senior partners because of their years of experience. To establish the business, Kimble, Sykes, and Gerard contribute cash and other properties valued at $328.000. $240.000, and $152.000, respectively. An articles of partnership agreement is drawn up stipulating the following: ⚫ Personal drawings are allowed annually up to an amount equal to 10 percent of the partner's beginning capital balance for the year. Profits and losses are allocated according to the following plan: 1. Each partner receives an annual salary allowance of $55 per billable hours worked. 2. Interest is credited to the partners' capital accounts at the rate of 12 percent of the beginning capital balance for the year. 3. Kimble and Sykes are eligible for an annual bonus of 10 percent of net income after subtracting the bonus, salary allowance, and interest.…
Kimble, Sykes, and Gerard open an accounting practice on January 1, 2022, in Chicago, Illinois, to be operated as a partnership. Kimble and Sykes will serve as the senior partners because of their years of experience. To establish the business, Kimble, Sykes, and Gerard contribute cash and other properties valued at $233,000, $192,500, and $104,500, respectively. An articles of partnership agreement is drawn up stipulating the following: • • Personal drawings are allowed annually up to an amount equal to 10 percent of the partner's beginning capital balance for the year. Profits and losses are allocated according to the following plan: 1. Each partner receives an annual salary allowance of $55 per billable hours worked. 2. Interest is credited to the partners' capital accounts at the rate of 12 percent of the beginning capital balance for the year. 3. Kimble and Sykes are eligible for an annual bonus of 10 percent of net income after subtracting the bonus, salary allowance, and…
On February 1, 2020, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams contributed $89,000 cash and Xie contributed land valued at $129,000 and a small building valued at $189,000. Also, the partnership assumed responsibility for Xie’s $139,000 long-term note payable associated with the land and building. The partners agreed to share profit or loss as follows: Williams is to receive an annual salary allowance of $99,000, both are to receive an annual interest allowance of 12% of their original capital investments, and any remaining profit or loss is to be shared equally. On November 20, 2020, Williams withdrew cash of $69,000 and Xie withdrew $54,000. After the adjusting entries and the closing entries to the revenue and expense accounts, the Income Summary account had a credit balance of $169,000.Required:1. Present general journal entries to record the initial capital investments of the partners, their cash withdrawals, and the December 31 closing of the Income…
The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A $10,000 C. ($12,000)
Manji