EXERCISE 8. Statement Preparation. The partnership of Rafa, Andy, and Novak was formed and started operations on January 1 of this year under the business name Grand Slam Tennis Center (GSTC), a business following the calendar year. The initial contributions of each partner were as follows: Rafa P350,000 Andy P300,000 Novak P100,000 Cash Training Equipment 200,000 On August 31, Rafa invested an additional P75,000 cash in the partnership. Andy made a permanent cash withdrawal of P60,000 on May 1 and reinvested P70,000 cash on October 1. According to partnership agreement, profits and losses are divided using average capital after the following: 10% interest on average capital balances; • Monthly salary allowances of P5,000 and P8,000 for Andy and Novak, respectively; and • 10% bonus to Rafa, the managing partner, based on net income before bonus and 30% inrome tay

EXERCISE 8. Statement Preparation. The partnership of Rafa, Andy, and Novak was formed and started operations on January 1 of this year under the business name Grand Slam Tennis Center (GSTC), a business following the calendar year. The initial contributions of each partner were as follows: Rafa P350,000 Andy P300,000 Novak P100,000 Cash Training Equipment 200,000 On August 31, Rafa invested an additional P75,000 cash in the partnership. Andy made a permanent cash withdrawal of P60,000 on May 1 and reinvested P70,000 cash on October 1. According to partnership agreement, profits and losses are divided using average capital after the following: 10% interest on average capital balances; • Monthly salary allowances of P5,000 and P8,000 for Andy and Novak, respectively; and • 10% bonus to Rafa, the managing partner, based on net income before bonus and 30% inrome tay

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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