Distribution of Profits and Losses: 1. The ABC partnership provided for the following distribution of profits and losses: • Amaya and Bolano each are to receive 5% of the net profits up to P1,500,000 and 20% on the amount in excess thereof; • Caballero is tọ receive 80% in excess of P1,000,000 of the remaining profit after deducting Amaya and Bolano's share as per above. • The balance is to be divided 4:2:4 respectively among the partners. • Profit is P2,750,000 REQUIRED: Prepare the following: A. Profit or Loss Distribution Table B. Corresponding JOURNAL ENTRY to distribute profit or loss

Distribution of Profits and Losses: 1. The ABC partnership provided for the following distribution of profits and losses: • Amaya and Bolano each are to receive 5% of the net profits up to P1,500,000 and 20% on the amount in excess thereof; • Caballero is tọ receive 80% in excess of P1,000,000 of the remaining profit after deducting Amaya and Bolano's share as per above. • The balance is to be divided 4:2:4 respectively among the partners. • Profit is P2,750,000 REQUIRED: Prepare the following: A. Profit or Loss Distribution Table B. Corresponding JOURNAL ENTRY to distribute profit or loss

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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A, B, and C agreed that A will receive 10% of profit and each partner receive 6% interest on average capital investment. Residual profit or loss is divided equally. The average capital balances of A, B, and C were P80,000, P50,000, and P30,000. What amount should C receive from the partnership income of P100,000?
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Xavier and Yolanda have original investments of $46,000 and $103,600, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $26,800 and $31,800, respectively; and the remainder to be divided equally. How much of the net income of $111,000 is allocated to Xavier? Oa. $47,240 Ob. $56,688 Oc. $36,000 Od. $26,800
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The partnership agreement of Angela and Dawn has the following provisions: 1. The partners are to earn 10 percent on the average capital. 2. Angela and Dawn are to earn salaries of $26,000 and $18,000, respectively. 3. Any remaining income or loss is to be divided between Angela and Dawn using a 70:30 ratio. Angela's average capital is $59,000 and Dawn's is $43,000. Required: Prepare an income distribution schedule assuming the income of the partnership is (a) $90,000 and (b) $28,000. If no partnership agreement exists, what does the UPA 1997 prescribe as the profit or loss distribution percentages? Note: Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign. (a) Distribution of $90,000 income: Profit percentage Average capital Net income Interest on average capital Salary Residual income (deficit) Allocate Total (b) Distribution of $28,000 income: Angela 70 % $ 26,000 Dawn 64,100 $ 102,200 30 % $18,000 $ 5,900 $ 4,300 32,200…
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The ABC Partnership has assets with book value of P240,000 and a market value of P195,000, outside liabilities of P70,000, loans payable to Partner Abe of P20,000,and capital balances for Partners Abe, Baker, and Chapman of P70,000, P30,000 andP50,000, respectively. The partners share profits and losses equally. How would the first P100,000 of available assets be distributed?
Shirley contributes property to a new partnership with a value of $1,000,000 and a basis of $400,000 that is secured by a $500,000 nonrecourse note. Under the terms of the partnership agreement, Shirley will be allocated 25% of all profits. The partnership agreement also states that "excess nonrecourse liabilities" will be allocated to partners according to profit ratios. How much of the nonrecourse liability will be allocated to Shirley? please dont provide answer in images thank you
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How much was the share of A?