The following is the list of income and expense accounts of JJJ Partnership as of year-endDecember 31, 2020.Freight-inMerchandise Inventory, Jan. 17,50050,0008,000300,00010,000800,00090,00012,0004,5009,50015,00060,000Purchase DiscountPurchasesRent ExpenseSalesSalaries and WagesSales DiscountSales Returns and AllowancesSupplies ExpensesTaxes and Licenses ExpenseUtilities ExpenseAdditional information:Merchandise Inventory, Dec. 3126,500Exercise 3-5. Distribution of Net IncomeLuz, Olivia, Vera, and Ethel are partners of LOVE Trading sharing profits in the ratio of 3:4:2:1.At the end of the accounting period, the partnership's operation resulted a net profit of P450,000.Record the journal entry to distribute net income of the partnership.

The partnership comes into existence when two or more persons agree to do the business and further…

Exercise 3-5. Distribution of Net Income Luz, Olivia, Vera, and Ethel are partners of LOVE Trading sharing profits in the ratio of 3:4:2:1. At the end of the accounting period, the partnership's operation resulted a net profit of P450,000. Record the journal entry to distribute net income of the partnership.

Exercise 3-5. Distribution of Net Income Luz, Olivia, Vera, and Ethel are partners of LOVE Trading sharing profits in the ratio of 3:4:2:1. At the end of the accounting period, the partnership's operation resulted a net profit of P450,000. Record the journal entry to distribute net income of the partnership.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 3CE

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