3.15 Celso and Danilo formed a partnership on March 1, 200A, eachinvesting P 36,000. On July 1, 200A, Danilo made an additionalinvestment of P 12,000. On May 1, 200A, Celso made a capitalwithdrawal of P 4,800 but reinvested the same amount on October1, 200A. During 200A, Celso withdrew P 960 per month andDanilo, the managing partner, withdrew P 1,200 per month. Thesedrawings were charged to salary expense account.A pre-closing trial balance taken at December 31, 200Ashowed the following balances:CashP 10,80018,000Accounts ReceivableEquipmentOther Assets60,00022,80020,400Accounts PayableCelso CapitalDanilo Capital36,00048,00060,00020,4004,800Service IncomeRent ExpenseUtilities ExpenseSalaries of the partnersMiscellaneous Expenses21,6006,000The profit and loss sharing agreement provides for thefollowing:Monthly salary: Celso, P 960Danilo, P 1,200Interest of 12% per annum is allowed on the average capitalResidual income is to be divided equally.REQUIRED:How much is the partnership profit during the period?b. Prepare a Statement of Partners' Equity for the period endedDecember 31, 200A.

Answered: REQUIRED: a. How much is the…

REQUIRED: a. How much is the partnership profit during the period? b. Prepare a Statement of Partners' Equity for the period ended December 31, 200A.

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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