Tony and Steve formed a partnership on January 1, 2019. Their partnership earned a net income of 1,800,000 for the year ended 2019. The following stipulations are found in their articles of partnership: Tony is the receive a monthly salary of P25,000 as compensation for his managing duties in the partnership • Steve is the receive an annual salary of P180,000 from the partnership • Bonus of 15% is granted to Tony if the partnership income exceeds P1,000,000 (Bonus is computed based on the excess from PIM) · Each partner is to receive an interest of 10% based on their weighted average capital balances. • The remaining balance is divided accordingly to Tony and Steve in the ratio of 2:3 The following are the capital transactions of the partners: Tony Steve Debit Credit Debit Credit 1-Jan G00,000 700,000 1-Mar 120,000 300,000 1-Apr 1-Jul 200,000 90,000 1-Sep 30-Sep 240,000 30-Oct 150,000

Tony and Steve formed a partnership on January 1, 2019. Their partnership earned a net income of 1,800,000 for the year ended 2019. The following stipulations are found in their articles of partnership: Tony is the receive a monthly salary of P25,000 as compensation for his managing duties in the partnership • Steve is the receive an annual salary of P180,000 from the partnership • Bonus of 15% is granted to Tony if the partnership income exceeds P1,000,000 (Bonus is computed based on the excess from PIM) · Each partner is to receive an interest of 10% based on their weighted average capital balances. • The remaining balance is divided accordingly to Tony and Steve in the ratio of 2:3 The following are the capital transactions of the partners: Tony Steve Debit Credit Debit Credit 1-Jan G00,000 700,000 1-Mar 120,000 300,000 1-Apr 1-Jul 200,000 90,000 1-Sep 30-Sep 240,000 30-Oct 150,000

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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