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Anna and Gerwin entered into a partnership on March 1, 2021 by investing Php 1,250,000 and Php 750,000 respectively. They agreed that Anna, as managing partner, will receive a salary amounting to Php 360,000 per year and a bonus computed at 10 percent of the net income after salaries; the balance of the profit will be distributed in the ratio based on their original capital contributions. On December 1, 2021, the account balances were as follows: Php 700,000 670,000 450,000 Cash Accounts Receivable Furniture and Fixtures Investment Properties 1.247.500

Anna and Gerwin entered into a partnership on March 1, 2021 by investing Php 1,250,000 and Php 750,000 respectively. They agreed that Anna, as managing partner, will receive a salary amounting to Php 360,000 per year and a bonus computed at 10 percent of the net income after salaries; the balance of the profit will be distributed in the ratio based on their original capital contributions. On December 1, 2021, the account balances were as follows: Php 700,000 670,000 450,000 Cash Accounts Receivable Furniture and Fixtures Investment Properties 1.247.500

FINANCIAL ACCOUNTING
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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Problem 2 Formation and Operations of a Partnership Anna and Gerwin entered into a partnership on March 1, 2021 by investing Php 1,250,000 and Php 750,000 respectively. They agreed that Anna, as managing partner, will receive a salary amounting to Php 360,000 per year and a bonus computed at 10 percent of the net income after salaries; the balance of the profit will be distributed in the ratio based on their original capital contributions. On December 1, 2021, the account balances were as follows: Cash Php 700,000 670,000 450,000 1,247,500 615,000 2,333,000 1,250,000 750,000 200,000 300,000 2,333,000 50,000 696,000 600,000 Accounts Receivable Furniture and Fixtures Investment Properties Accounts Payable Sales Anna, Capital Gerwin, Capital Anna, Drawing Gerwin, Drawing Sales Sales Returns Purchases Operating Expenses On December 31, 2021, the following were determined: Office Supplies Prepaid Insurance Depreciation still to be done, Depreciation rate for the Furniture and Fixtures was 20 percent per year. Php 25,000 9,500 Requirement: Prepare the Income Statement of the Anna-Gerwin Partnership as of December 31, 2021 and provide a distribution schedule on the Net Income. 1. 2. Prepare the Capital Statement of Anna-Gerwin Partnership as of December 31, 2021.
Transcribed Image Text:Problem 2 Formation and Operations of a Partnership Anna and Gerwin entered into a partnership on March 1, 2021 by investing Php 1,250,000 and Php 750,000 respectively. They agreed that Anna, as managing partner, will receive a salary amounting to Php 360,000 per year and a bonus computed at 10 percent of the net income after salaries; the balance of the profit will be distributed in the ratio based on their original capital contributions. On December 1, 2021, the account balances were as follows: Cash Php 700,000 670,000 450,000 1,247,500 615,000 2,333,000 1,250,000 750,000 200,000 300,000 2,333,000 50,000 696,000 600,000 Accounts Receivable Furniture and Fixtures Investment Properties Accounts Payable Sales Anna, Capital Gerwin, Capital Anna, Drawing Gerwin, Drawing Sales Sales Returns Purchases Operating Expenses On December 31, 2021, the following were determined: Office Supplies Prepaid Insurance Depreciation still to be done, Depreciation rate for the Furniture and Fixtures was 20 percent per year. Php 25,000 9,500 Requirement: Prepare the Income Statement of the Anna-Gerwin Partnership as of December 31, 2021 and provide a distribution schedule on the Net Income. 1. 2. Prepare the Capital Statement of Anna-Gerwin Partnership as of December 31, 2021.
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