7. Garachico, Perez, and Burgos formed a partnership on Jan. 1, 2019, and contributed P150,000, P200,000, and P250,000, respectively. Their articles of co-partnership provided that the operating profit be shared among the partners as follows: as salary, P24,000 for Garachico, P18,000 for Perez, and P12,000 for Burgos; interest of 12% on the average capital during 2019 of the three partners; and the balance in the ratio of 2:4:4, respectively. The operating profit for the year ended Dec. 31, 2019 amounted to P176,000. Garachico contributed additional capital of P30,000 on July 1 and made a withdrawal of P10,000 on Oct. 1; Perez contributed additional capital of P20,000 on Aug. 1 and made a withdrawal of P10,000 on Oct. 1; and, Burgos made a withdrawal of P30,000 on Nov. 1. The partner's capital balances on Dec. 31, 2019 are: a. Garachico, P179,680; Perez, P229,360; Burgos, P239,360 b. Garachico, P223,180; Perez, P272,060; Burgos, P280,760 c. Garachico, P189,680; Perez, P239,360; Burgos, P269,360 d. Garachico, P179,760; Perez, P229,520; Burgos, P239,520

7. Garachico, Perez, and Burgos formed a partnership on Jan. 1, 2019, and contributed P150,000, P200,000, and P250,000, respectively. Their articles of co-partnership provided that the operating profit be shared among the partners as follows: as salary, P24,000 for Garachico, P18,000 for Perez, and P12,000 for Burgos; interest of 12% on the average capital during 2019 of the three partners; and the balance in the ratio of 2:4:4, respectively. The operating profit for the year ended Dec. 31, 2019 amounted to P176,000. Garachico contributed additional capital of P30,000 on July 1 and made a withdrawal of P10,000 on Oct. 1; Perez contributed additional capital of P20,000 on Aug. 1 and made a withdrawal of P10,000 on Oct. 1; and, Burgos made a withdrawal of P30,000 on Nov. 1. The partner's capital balances on Dec. 31, 2019 are: a. Garachico, P179,680; Perez, P229,360; Burgos, P239,360 b. Garachico, P223,180; Perez, P272,060; Burgos, P280,760 c. Garachico, P189,680; Perez, P239,360; Burgos, P269,360 d. Garachico, P179,760; Perez, P229,520; Burgos, P239,520

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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