AUBRRIS Trading was organized and began operations on May 1, 2021. 0n that date, Aubrey invested P1,000,000 cash and Morris invested land and building with current fair values of 1,750,000 and 850,000, respectively, The average capital balances of Aubrey and Morris were determined to be P1,223,890 and P1,222,090, respectively. includes the following: The partnership contract The profit or loss sharing agreement is as follows: Morris Aubrey 152,200 20% Annual salaries 151,800 Annual interest on average balance 30% Remainder 60% 40% During fiscal the year ended April 30, 2022, the partnership had net sales of P3,000,000, cost of goods sold of P1,000,000 and operating expenses of P391,090. The partners' salaries had been recorded as part of the operating expenses. 3. How much is the total share of Aubrey in the profit for the period?
AUBRRIS Trading was organized and began operations on May 1, 2021. 0n that date, Aubrey invested P1,000,000 cash and Morris invested land and building with current fair values of 1,750,000 and 850,000, respectively, The average capital balances of Aubrey and Morris were determined to be P1,223,890 and P1,222,090, respectively. includes the following: The partnership contract The profit or loss sharing agreement is as follows: Morris Aubrey 152,200 20% Annual salaries 151,800 Annual interest on average balance 30% Remainder 60% 40% During fiscal the year ended April 30, 2022, the partnership had net sales of P3,000,000, cost of goods sold of P1,000,000 and operating expenses of P391,090. The partners' salaries had been recorded as part of the operating expenses. 3. How much is the total share of Aubrey in the profit for the period?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question: How much is the total share of Aubrey in the profit for the period?
Transcribed Image Text:AUBRRIS Trading was organized and began operations on May 1, 2021, On
that date, Aubrey invested P1,000,000 cash and Morris invested land and
building with current fair values of 1,750,000 and 850,000, respectively.
The average capital balances of Aubrey and Morris were determined to be
P1,223,890 and P1,222,090, respectively.
includes the following:
The partnership contract
The profit or loss sharing agreement is as follows:
Aubrey
152,200
20%
Morris
151,800
Annual salaries
Annual interest on average balance
Remainder
30%
60%
40%
During fiscal the year ended April 30, 2022, the partnership had net sales of
P3,000,000, cost of goods sold of P1,000,000 and operating expenses of
P391,090. The partners' salaries had been recorded as part of the operating
expenses.
3. How much is the total share of Aubrey in the profit for
the period?
C.
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