A P9,600 incentive to Mona, and the remainder to be allocated on the ratio of 1:2, respectively. It is also agreed that Lisa is guaranteed to receive at least P35,000 in case the partnership yields profit. 1. 2. a monthly salary of P10,000 each to Mona and Lisa, and the remainder to be allocated equally. A 6% interest based on average capital balances,
A P9,600 incentive to Mona, and the remainder to be allocated on the ratio of 1:2, respectively. It is also agreed that Lisa is guaranteed to receive at least P35,000 in case the partnership yields profit. 1. 2. a monthly salary of P10,000 each to Mona and Lisa, and the remainder to be allocated equally. A 6% interest based on average capital balances,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Can you help me with this one please
Transcribed Image Text:Problem
Below are the capital changes occurred on MonaLisa
Partnership for the first year of operations:
Date
Mona, Capital
Lisa, Capital
Jan. 1 (original
investment)
P88,000
P69,000
Apr. 1
(3,000)
Jun. 1
14,000
Oct. 1
6,000
(4,500)
During the first year, the partnership earned net
income of P66,600. Temporary withdrawals of P100
cash per month were agreed by both partners, and
they both started withdrawing cash in July, and
consistently made it monthly until year-end.
Required:
Determine the ending capital balances of both
partners based on the following independent
assumptions on allocating profits and losses.
A P9,600 incentive to Mona, and the remainder
to be allocated on the ratio of 1:2, respectively. It is
also agreed that Lisa is guaranteed to receive at least
P35,000 in case the partnership yields profit.
1.
A 6% interest based on average capital balances,
a monthly salary of P10,000 each to Mona and Lisa,
and the remainder to be allocated equally.
2.
A 10% interest on their ending capital balances, a
bonus of 11% to Lisa based on profits after deducting
the bonus, and the remainder to be divided in a 3:2
ratio, respectively.
3.
Annual salary of P180,000 to Mona and
P120,000 to Lisa, a bonus of 10% to Mona based on
profits after salaries, and the remainder to be allocated
equally.
4.
An 8% interest based on original investments,
annual salary of P18,720 each partner, a 5% bonus to
Lisa based on profits after interests and salaries, and
the remainder to be allocated equally.
5.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education