Homework Help is Here – Start Your Trial Now!
Business
Accounting
Cedrick are patners of Zedski Company. The Income and Expense Summary account before final closing shows a credit balance of P225,000 at the end of the fiscal year. The following were taken from the respective capital account ledgers of Arvin and Cedrick: Cedrick Jan 1 Balance Arvin P150,000 P120,000 18,000 Jan 1 Balance 25,000 15,000 Apr. 1 Withdrawal Apr 1 Investment Sept 1 Investment Required: Determine how profit is distributed to partners (show supporting schedule of profit distribution) under the following separate assumptions: a). 10% interest based on beginning capital is provided and the remaining amount is distributed based in ending capital balances. b). 20% interest is allowed to partners based in ending capital balances, P15,000 salaries to each of the partners and the remaining amount is distributed based on an arbitrary ratio of 4:2. c). 12% interest is provided for based on the average capital balances, bonus to Arvin of 20% of profit before salaries but after bonus, salaries to each of the partner in the amount of P20,000 and P15,000, 14,000 Aug 1 Withdrawal respectively and the remainder equally divided.

Cedrick are patners of Zedski Company. The Income and Expense Summary account before final closing shows a credit balance of P225,000 at the end of the fiscal year. The following were taken from the respective capital account ledgers of Arvin and Cedrick: Cedrick Jan 1 Balance Arvin P150,000 P120,000 18,000 Jan 1 Balance 25,000 15,000 Apr. 1 Withdrawal Apr 1 Investment Sept 1 Investment Required: Determine how profit is distributed to partners (show supporting schedule of profit distribution) under the following separate assumptions: a). 10% interest based on beginning capital is provided and the remaining amount is distributed based in ending capital balances. b). 20% interest is allowed to partners based in ending capital balances, P15,000 salaries to each of the partners and the remaining amount is distributed based on an arbitrary ratio of 4:2. c). 12% interest is provided for based on the average capital balances, bonus to Arvin of 20% of profit before salaries but after bonus, salaries to each of the partner in the amount of P20,000 and P15,000, 14,000 Aug 1 Withdrawal respectively and the remainder equally divided.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
need all requirements a-c
and Cedrick are patners of Zedski Company. The Income and Expense Summary account before final closing shows a credit balance of P225,000 at the end of the fiscal year. The following were taken from the respective capital account ledgers of Arvin and Cedrick: Arvin Cedrick Jan 1 Balance P120,000 Jan 1 Balance P150,000 18,000 14,000 Apr 1 Investment Aug 1 Withdrawal 25,000 15,000 Apr. 1 Withdrawal Sept 1 Investment Required: Determine how profit is distributed to partners (show supporting schedule of profit distribution) under the following separate assumptions: a). 10% interest based on beginning capital is provided and the remaining amount is distributed based in ending capital balances. b). 20% interest is allowed to partners based in ending capital balances, P15,000 salaries to each of the partners and the remaining amount is distributed based on an arbitrary ratio of 4:2. c). 12% interest is provided for based on the average capital balances, bonus to Arvin of 20% of profit before salaries but after bonus, salaries to each of the partner in the amount of P20,000 and P15,000, respectively and the remainder equally divided.
Transcribed Image Text:and Cedrick are patners of Zedski Company. The Income and Expense Summary account before final closing shows a credit balance of P225,000 at the end of the fiscal year. The following were taken from the respective capital account ledgers of Arvin and Cedrick: Arvin Cedrick Jan 1 Balance P120,000 Jan 1 Balance P150,000 18,000 14,000 Apr 1 Investment Aug 1 Withdrawal 25,000 15,000 Apr. 1 Withdrawal Sept 1 Investment Required: Determine how profit is distributed to partners (show supporting schedule of profit distribution) under the following separate assumptions: a). 10% interest based on beginning capital is provided and the remaining amount is distributed based in ending capital balances. b). 20% interest is allowed to partners based in ending capital balances, P15,000 salaries to each of the partners and the remaining amount is distributed based on an arbitrary ratio of 4:2. c). 12% interest is provided for based on the average capital balances, bonus to Arvin of 20% of profit before salaries but after bonus, salaries to each of the partner in the amount of P20,000 and P15,000, respectively and the remainder equally divided.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS