A and B formed a Partnership on January 1, 2020. Partner A’s contributed capital amounted to P40,000, while partner B’s contributed capital amounted to P20,000. The Partnership agreement provides for the following: Capital accounts are to be credited annually with interest at 5% of the beginning capital. Partner B is to be paid salary of P6,000 quarterly. Partner B is to receive a bonus of 10% based on the net income The Partnership's income statement for the year ended is as follows: Revenues, P105,000 Expenses (including salary, interest, and bonus), 30,000 Net income, 75,000 What is partner's B 2020 bonus?
A and B formed a Partnership on January 1, 2020. Partner A’s contributed capital amounted to P40,000, while partner B’s contributed capital amounted to P20,000. The Partnership agreement provides for the following: Capital accounts are to be credited annually with interest at 5% of the beginning capital. Partner B is to be paid salary of P6,000 quarterly. Partner B is to receive a bonus of 10% based on the net income The Partnership's income statement for the year ended is as follows: Revenues, P105,000 Expenses (including salary, interest, and bonus), 30,000 Net income, 75,000 What is partner's B 2020 bonus?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A and B formed a Partnership on January 1, 2020. Partner A’s contributed capital amounted to P40,000, while partner B’s contributed capital amounted to P20,000. The Partnership agreement provides for the following:
- Capital accounts are to be credited annually with interest at 5% of the beginning capital.
- Partner B is to be paid salary of P6,000 quarterly.
- Partner B is to receive a bonus of 10% based on the net income
The Partnership's income statement for the year ended is as follows:
Revenues, P105,000
Expenses (including salary, interest, and bonus), 30,000
Net income, 75,000
What is partner's B 2020 bonus?
Group of answer choices
9,273
7,500
9,333
11,333
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