Problem 1At the end of the its first year of operations on December 31, 2020, HEART ATTACK Company'saccounts show the following:CapitalP 48,000P 30,000P 25,000PartnerDrawingsMr. ChicharonP 23,000P 14,000P 10,000Mr. BulaloMr. L. KawaliThe capital balances represents each partner's initial capital investment. Therefore, net incomeor net loss for 2020 has not been closed to the partners' capital accounts.Instructions:a. Journalize the entry to record the division of net income for the year 2020 under each of thefollowing independent assumptions.1. Net income is P 30,000. Income is shared 6:3:12. Net income is P 40,000, Mr. Chicharon and Mr. Bulalo are given salary allowances of P 15,000and P 10,000, respectively. The remainder is shared equally.3. Net income is P 19,000. Each partner is allowed interest of 10% on beginning capitalbalances. Mr. Chicharon is given a P 15,0000 salary allowance. The remainder is shared equallyb. Prepare a schedule showing the division of net income under assumption (3) above.c. Prepare a partner's capital statement for the yar under assumptions (3) above.

Answered: Problem 1 At the end of the its first…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Problem 2: Julia and Joshua entered into a partnership on April 1, 2013, investing P 625,000 and P 375,000, respectively. It was agreed that Julia, the managing partner, is to receive a salary of P 162,875 per annum and 10% of net income after adjustment for the salary, the partners failed to come into an agreement on how to allocate the remaining profit. On March 31, 2014, account balances are as follows:
Please answer number 1 and letter d
Problem 1 At the end of the its first year of operations on December 31, 2020, HEART ATTACK Company's accounts show the following: Partner Mr. Chicharon Mr. Bulalo Mr. L. Kawali Drawings P 23,000 P 14,000 P 10,000 Capital P 48,000 P 30,000 P 25,000 The capital balances represents each partner's initial capital investment. Therefore, net income or net loss for 2020 has not been closed to the partners' capital accounts. Instructions: a. Journalize the entry to record the division of net income for the year 2020 under each of the following independent assumptions. 1. Net income is P 30,000. Income is shared 6:3:1 2. Net income is P 40,000, Mr. Chicharon and Mr. Bulalo are given salary allowances of P 15,000 and P 10,000, respectively. The remainder is shared equally. 3. Net income is P 19,000. Each partner is allowed interest of 10% on beginning capital balances. Mr. Chicharon is given a P 15,0000 salary…
Required information [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $80,000, $112,000, and $128,000, respectively, in a partnership. During its first calendar year, the firm earned $249,000. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $249,000 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $66,000 to Ries, $56,000 to Bax, and $80,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Complete this question by entering your ans below. Appropriation General of profits Journal Allocate $249,000 net income by providing annual $66,000 to Ries, $56,000 to Bax, and $80,000 to interest on the partners' beginning capital investm remainder equally. Supporting Calculations Net income Salary allowances…
EXERCISE 8-10. Problem Solving 2: Gain or loss on realization of non-cash assets; capital deficiency absorption. Joshua, Daniel, and Martha were partners sharing profit and losses in the ratio of 1:2:1, respectively. On March 15, 2019, they decided to liquidate. Capital balances of Joshua, Daniel, and Martha were P215,000, P75,000, and P85,000, respectively. Liabilities amounting to P100,000 had yet to be settled. Total assets, inclusive of P35,000 cash, totaled P475,000. All non-cash assets were sold for only 30% of their book values. Liquidating expenses of P5,000 were also incurred. It was also determined that all partners, except Daniel, were solvent. REQUIRED: 1. How much was the gain or loss on non-cash asset realization? 2. How much cash should Martha infuse to satisfy the liquidation process of the partnership?
P12-2C At the end of its first year of operations on December 31, 2012, the LAX Company's Journalize divisions of net in- accounts show the following. come and prepare a partners' capital statement. Partner Drawings $12,000 9,000 4,000 Сapital $33,000 (SO 3, 4) J. Leno L. Arthur 20,000 10,000 J. Xavier The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2012 has not been closed to the partners' capital accounts. Instructions (a) (1) Leno $20,000 (2) Leno $14,000 (3) Leno $24,200 (a) Journalize the entry to record the division of net income for 2012 under each of the follow- ing independent assumptions. (1) Net income is $40,000. Income is shared 5:3:2. (2) Net income is $30,000. Leno and Arthur are given salary allowances of $11,000 and $10,000, respectively. The remainder is shared equally. (3) Net income is $33,000. Each partner is allowed interest of 10% on beginning capital bal- ances. Leno is given an $18,000 salary…
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Prepare the Statement of Changes in Equity for the year ended 28 February 2022. INFORMATION The information given below was extracted from the accounting records of Sunray Traders, a partnership business with Sunny and Raymond as partners. Extract from the ledger of Sunray Traders as at 28 February 2022 CREDIT DEBIT R Capital: Sunny 1 000 000 Capital: Raymond 600 000 Current alc Sumy (01 March 2021) 60 000 Current alc Raymond (01 March 2021) 40 000 Drawings: Sunny 300 000 Drawings Raymond 400 000 The following must be taken into account: (a) The Statement of Comprehensive Income refected a net profit of R900 000 for the year ended 28 February 2022 (b) The partnership agreement provided for interest on capital at 12% p.a on the balances on the capital accounts. Note: Sunny increased his capital contribution by R200 000 on 01 June 2021 whilst Raymond decreased his capital contribution by R200 000 on 01 September 2021. The capital changes have been recorded. (c) The partrers are entided…
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