Al and Ben share profits and losses in a ratio of 23, respectively, after salary allowances, interest allowances and bonus allocations.Al and Ben recerve salary allowaices of P30,000 and P60,000, respectively, and both partriers receive 10% interest based upon thebalance in their capital accounts on January 1 Partners drawings ere not used in determining the average capital balarices Total netincome for 2021 is P180,000 If net income after deducting the interest and salary allocations is more than P60.000, Ben receives abonus of 5% of the criginal amount of net incomeJanuary 1 canital balances Al, P 600,000 and Ben, P 900.000Yearly drawings (P3.000 a monthi. AL P 36,000 and Ben, P 35,000What is the totai amount for the alocation of interest, salary, and bonus, and how much oyer-allicbation present?

A agreement is an arrangement between two or more people to run a business together and share…

d Ben share protits and losses in a ratio of 23, respectively, after salary allowan d Ben recerve salary allowances of P30,000 and P60,000, respectively, and both ace in their capital accounts on January 1 Partners drawings ere not used in de me for 2021 is P180,000 If net income after deducting the interest and salary al s of 5% of the original amount of net income sry 1 capital balances Al, P 600,000: and Ben, P 900,000 y drawings (P3000 a monthi. Al,P 36,000 and Ben, P 36,000

d Ben share protits and losses in a ratio of 23, respectively, after salary allowan d Ben recerve salary allowances of P30,000 and P60,000, respectively, and both ace in their capital accounts on January 1 Partners drawings ere not used in de me for 2021 is P180,000 If net income after deducting the interest and salary al s of 5% of the original amount of net income sry 1 capital balances Al, P 600,000: and Ben, P 900,000 y drawings (P3000 a monthi. Al,P 36,000 and Ben, P 36,000

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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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…
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Show the computation
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