erate as a partnership. Their agreement includes the following: ● Rian will receive a salary of P20,000 and a bonus of 3% of income after all the bonuses ● Lance will receive a salary of P10,000 and a bonus of 2% of income after all the bonuses ● All the partners are to receive the following: Rian - P5,000; Lance P4,500; Weng - P2,000; and Sidd - P4,700, representing 10% interest on their average capital balances. ● Any remaining profits are to be divided equally among the partners Partnership reports a profit of P40,000 ● w much is Lance's share in the profit if profit is distributed in the following er of priority: Interest on invested capital, then bonuses, then salary, and a according to profit and loss percentage?

erate as a partnership. Their agreement includes the following: ● Rian will receive a salary of P20,000 and a bonus of 3% of income after all the bonuses ● Lance will receive a salary of P10,000 and a bonus of 2% of income after all the bonuses ● All the partners are to receive the following: Rian - P5,000; Lance P4,500; Weng - P2,000; and Sidd - P4,700, representing 10% interest on their average capital balances. ● Any remaining profits are to be divided equally among the partners Partnership reports a profit of P40,000 ● w much is Lance's share in the profit if profit is distributed in the following er of priority: Interest on invested capital, then bonuses, then salary, and a according to profit and loss percentage?

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 and B formed a partnership. The partnership agreement stipulates the following: • Annual salary allowances of P80,000 for A and P40,000 for B. • The partners share in profits and losses equally. The partnership earned profit of P100,000. How much is the share of B? 30,000 48,000 52,000 70,000
Bruce, Parker and May formed a partnership. Their capital balances showed the following: Bruce, Capital P252,000; Parker, Capital- P126,000; May, Capital- P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000. Violet will pay the money directly to the other partners. How much was the bonus debited or credited in paetner Bruce's capital accounts?
Item Nos. 11 and 12 are based on the following information: The partnership contract of partners L and M provides that L, the managing partner is allowed a bonus of 20% of the profit after taxes. The partnership is subject to an income tax rate of 35% of the profit. During 200C, the partnership earned profit before taxes of P 113,000. 11. If the bonus is based on the profit after taxes but before bonus, how much is the bonus of L? а. Р 13,000. P 14,500. С. b. P 13,250. d. P 14,690.
Partners Coleen and Norlyn received a salary of 150000 and 300000 and will share profit and loss in a 2:1 ratio respectively. If the partnership suffered a 150,000 loss in 2020, determine how the loss will be distributed to Coleen and Norlyn.Coleen's share on profit or loss?Norlyn's share on profit or loss?How much is the total amount to be distributed using the 2:1 ration?
Anna and Ben formed a partnership with investments of P1,000,000 and P500,000, respectively. Net income is P210,000. The partners agreed on the following: 10% interest on original investments . Anna's salary allowance of 120,000 and Ben's salary allowance of P144,000 Balance 1:2 between Anna and Ben, respectively ● How much is Anna's share in the net income?
On April 1, 2020, Lana, Brent and Marie formed LBM Partnership with original contributions ofP400,000, P100,000 and P500,000, respectively. The articles of co-partnership provides that profit orloss shall be distributed under the following terms:• Lana, Brent and Marie shall be entitiled to monthly salaries of P1,000, P2,000 and P3,000 eachrespectively.• 10% return on the original capital contribution.• As managing partner, Brent shall receive bonus equal to 20% of net income after salaries andinterest but before bonus.• The remainder shall be distributed on the basis of original capital ratio.During the year, the partners regularly withdraw 1⁄4 of their monthly salary. The December 31, 2020statement of financial position of LBM Partnership shows that the capital balance of Lana is P531,080.What is the share of Brent in the partnership net income?A. 108,038.75 C. 105,820B. 106,070 D. 103,195
Juan and Pedro’s partnership agreement showed the following:Salaries of P 100,000 will be provided to the partners.Interest of 10% of the ending capital balances for each partnerA bonus of 20% of the income after bonus and before tax will be given to Pedro.Any remainder will be distributed 2/5 and 3/5, respectively.Ending capital of Juan and Pedro were P 600,000 and P 800,000, respectively. Income after tax is P 1,200,000. Income tax rate applied was 40%. How much is the share of Pedro?
Allocation of bonus to Arun and Margot: Arun Margot C. $50,000 Total capital of Arun and Margot Investment by new partner, Tammy Total capital of new partnership Tammy's capital credit Total bonus to Arun and Margot Prepare the journal entries to show the resulting each of the three partners' capital accounts. If an amount box does not require an entry, leave it blank. A. B. C. %24 %24 %24 %24
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The partner’s Paru-paru Gee and Kokak Yoo, share profits on the ratio 3:2. Partner’s Paru-paru Gee will receive a yearly bonus of 20% of the profits after deducting salaries and bonus, in addition to his profit share;While partner’s Kokak Yoo will receive an annual salary of P30,000, in addition to his profit share. The annual profit is P90,000. 1. How much was the share of Paru-paru Gee on the partnership profit?A. 30,000 C. 40,000 B. 40,800 D. 45,000 2. How much was the share of Kokak-Yoo on the partnership profit?A. 60,000 C. 49,200 B. 50,000 D. 45,000 kindly show your solution. Thank you