ABC and DEF are asked by the ABC to handle the marketing of a benefit basketball game. Being avid fans, they readily accepted the offer and formed a joint arrangement. To achieve an equitable distribution of earnings the following agreement were as follows: The partner who finances the purchase of tickets shall be entitled to a 15% commission The partner who makes ticket sales shall be entitled to a 10% commission ▸ Any remainder was to be divided equally. After the game was over, the following information was obtained: ► ABC purchased tickets worth P152,250; DEF advanced P18,250 for expenses and also purchased a ticket for P50,000; and, Ticket sales made by ABC and DEF, respectively, were P244,000 and P53,000. Unsold ticket was used by ABC for his friends amounting to P25,000. Compute the amount to be received (paid) by ABC during the settlement.

ABC and DEF are asked by the ABC to handle the marketing of a benefit basketball game. Being avid fans, they readily accepted the offer and formed a joint arrangement. To achieve an equitable distribution of earnings the following agreement were as follows: The partner who finances the purchase of tickets shall be entitled to a 15% commission The partner who makes ticket sales shall be entitled to a 10% commission ▸ Any remainder was to be divided equally. After the game was over, the following information was obtained: ► ABC purchased tickets worth P152,250; DEF advanced P18,250 for expenses and also purchased a ticket for P50,000; and, Ticket sales made by ABC and DEF, respectively, were P244,000 and P53,000. Unsold ticket was used by ABC for his friends amounting to P25,000. Compute the amount to be received (paid) by ABC during the settlement.

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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For each of the independent cases below, prepare a schedule of profit or loss distribution, and journal entry to record the distribution (explanation may be omitted). 5) The partnership agreement of Emily, Gregg and Samuel provided that profits are to be divided as follows: . Emily is to receive a salary allowance of P100,000 for managing the business. Partners are to receive 10% interest on average capital balances. Remaining profits are to be divided in the ratio of 30:30:40 to Emily, Gregg, and Samuel, respectively. Emily had a capital balance of P600,000 at Jan. 1, 2020 and had drawings of P80,000 on Aug. 1, 2020. Gregg's capital balance on Jan. 1, 2020 was P900,000 and invested an additional P300,000 on Sept. 1, 2020. Samuel's beginning capital balance was P1,100,000 and he withdrew P100,000 on July 1 but invested an additional P200,000 on Oct. 1, 2020. The partnership had incurred a net loss of P120,000 during the year.
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In the first year of operations, the partnership of Sun, Nyu, and Beom made a profit of 20,000, before providing for salaries of 5,000 and 3,000 per annum for Sun and Nyu, respectively. The capital contributions of the partners are as follows: Sun, 30,000; Nyu, 20,000; and Beom, 10,000. Assuming that no profit and loss ratio is provided in the partnership agreement and that there has been no change in the capital contributions during the year, how much profit share would Sun receive?
ABC, DEF, and GHI formed a joint arrangement to bankroll a series of cultural shows for the Philippine Centennial celebration. The following were agreed upon: ➤ ABC and DEF agreed to contribute cash and GHI was to manage the affairs of the joint arrangement. ➤ GHI was to receive a bonus of 25% of the net income bonus, ABC and DEF were to be allowed interest on their capital contributions at 6% per annum, and any remainder was to be divided equally among the three partners. After a year, the joint arrangement was terminated and the following information was provided: a. original capital contributions used to purchase tickets, were P3,630,000 and used to P4,950,000, respectively. from ABC and DEF: b. GHI sold tickets worth a total of P13,200,000; and GHI paid expenses of P3,798,300 out of joint arrangement funds. Compute for the share from the net income of GHI
Jpea, Jic, and Jfenix formed a partnership and named it ESBIEYEY. At the end of the year, the partnership earned a profit of P 1,000,000. The capital balances are P250,000, P280,000, and P270,000 for Jpea, Jic, and Jfenix, respectively. The partners agreed to distribute the profit as follows: Interest to ending capital of 10% will be given Jpea and Jic will be given a salary amounting to P 150,000 each Jfenix will be given a bonus of 10% of net income after interest, salary and bonus Remaining profit is to be distributed equally How much is the bonus given to Jfenix? A. P 67,000 B. P 62,000 C. P 56,364 D. P 60,909 How much is Jpea’s share in net income? A. P 365,879 B. P 360,879 C. P 362,879 D. P 364,879 How much is Jic’s share in net income? A. P 360,879 B. P 362,879 C. P 364,879 D. P 365,879
CC, PP and AA, accountants agree to form a partnership and to share profits in the ratio of 5:3:2. They also agreed that AA is to be allowed a salary of P28,000, and that PP is to be guaranteed P21,000 as his share of the profits, during the first operatioms, income from fees are P180,000, while expense total P96,000. What amount of net income should be credited to each partner's capital account?
On January 1, 2030, AAA, BBB, CCC and DDD formed ABCD Trading Co., a partnership with capital contributions as follows: AAA – P50,000; BBB – P25,000, CCC – P25,000 and DDD – P20,000. The partnership agreement stipulates that each partner shall receive a 5% interest on capital contributed and that AAA and BBB shall receive salaries of P5,000 and P3,000, respectively. The agreement further provides that CCC shall receive a minimum of P2,500 per annum and DDD, a minimum of P6,000 which is inclusive of amounts representing interest and their respective shares in partnership profits. The balance of the profits shall be distributed among AAA, BBB, CCC and DDD in the ratio of 3:3:2:2. 15. What amount must be earned by the partnership in 2030, before any charge for interest and partners’ salaries, in order that AAA may receive an aggregate of P12,500 including interest, salary and share of profits? A. P30,667 B. P32,333 C. P16,667 D. P30,000 16. RRR is trying to decide whether to accept a…
11. A, B and C are partners with the following contribution.A=60,000 B=20,000 C =20,000 and services. If there is no stipulation as to the profit sharing, and the partnership profit is P90,000. How much is their participation? (It was determined that P30,000 is just and equitable for the services of C) A=45,000 B=22,500 C =22,500 A=36,000 B=42,000 C =12,000 A=54,000 B=18,000 C =18,000 A=36,000 B=12,000 C =42,000 12. The organization or formation of the partnership is followed by other contracts to carry out its purpose. Which characteristic of the Contract of partnership is this? Preparatory Onerous Principal Bilateral 13. Statement I: General Rule, if a managing partner received money from a third person who owes the partnership and the managing partner, the amount received must be applied first to the obligation to the managing partner. Statement II:General Rule, if a managing partner received money from a third person who owes the partnership and the managing partner, the money…
Mighty Darrel and Super Zigg formed a partnership and agreed to have an equal interest in thepartnership’s assets. They agreed to make the following contributions : Darrel contributed 100,000and Zigg contributed 84,000 in identifiable assets. Under the bonus approach, what is the amount ofbonus from Darrel to Zigg capital? A. 46,000B. 16,000C. 8,000D. 0
I did parts 1,2(on the excel it is shown as a b c ) already, and have attached them.. i need help with 3 and 4.. lemon and salt entered into a partnership to provide supply chain management and logistic services in the san francisco region of California. In their agreed Articles of Partnership, the partners acknowledged the following: Sharing of profits and losses: Compensate each partner $125 per hour for their billable hourly consulting work performed. lemon receives an additional $3,000 monthly as the partnership’s Chief Operating Officer (COO); salt receives an additional $2,500 monthly as the partnership’s Chief Technology Officer (CTO), Any remaining profits or losses are divided equally between the partners. Each partner is permitted but not required to withdraw no more than $800 per month from the partnership and such withdrawals will be accounted for as direct reductions of the withdrawing partner’s capital balance They will begin their partnership with equal…