In January 2013, Edi Thomas and George Lopez agreed to produce and sell chocolate candies under the company name T&L Chocolates. Thomas contributed P580,000 in cash to the business. Lopez contributed the building and equipment, valued at P480,000 and P230,000, respectively. The partnership had an income of P675,000 during 2013 but was less successful during 2014, when income was only P580,000. d. The partners agreed to share income by allowing interest of 12 percent on their original investments and dividing the remainder equally. DISTRIBUTION OF INCOME BASED ON INTEREST ON INVESTMENTS AND REMAINDER SHARED EQUALLY 2013 Income of Partner Income Distributed 675,000.00 Total Income for Distribution Distribution of Interest: George Lopez (21) Edi Thomas (22) (23) Remaining Income After Interest (24) Equal distribution of remaining income: George Lopez (25) Edi Thomas (26) (27) Remaining income Income of Partners (29) (30) Income of Partner (28) 675,000.00 Income Distributed 580,000.00 2014 Total Income for Distribution Distribution of Interest: George Lopez (31) Edi Thomas (32) (33) Remaining Income After Interest (34) Equal distribution of remaining income: George Lopez (35) Edi Thomas (36) (37) Remaining income (38) Income of Partners (39) (40) 580,000.00 P e. The partners agreed to share income by allowing salaries of P83,000 for Thomas and P60,000 for Lopez, and dividing the remainder by 60 percent for Thomas and 40% for Lopez. DISTRIBUTION OF INCOME BASED ON AGREED AMOUNT OF SALARY PER PARTNER WITH THE REMAINDER SHARED ON SEPCIFIC PERCENTAGES. 2013 Income of Partner Income Distributed Total Income for Distribution Distribution of Salaries: 675,000.00 George Lopez (41) Edi Thomas (42) (45) Remaining Income After Salaries Distribution of remaining income: George Lopez Edi Thomas Remaining income Income of Partners 2014 (46) (49) (50) Income of Partner Total Income for Distribution Distribution of Salaries: George Lopez (51) Edi Thomas (52) Remaining Income After Salaries Distribution of remaining income: George Lopez (55) (56) Edi Thomas Remaining income Income of Partners (59) (60) (43) (44) (47) P 675,000.00 Income Distributed 580,000.00 (53) (54) (57) (58) $80,000.00
In January 2013, Edi Thomas and George Lopez agreed to produce and sell chocolate candies under the company name T&L Chocolates. Thomas contributed P580,000 in cash to the business. Lopez contributed the building and equipment, valued at P480,000 and P230,000, respectively. The partnership had an income of P675,000 during 2013 but was less successful during 2014, when income was only P580,000. d. The partners agreed to share income by allowing interest of 12 percent on their original investments and dividing the remainder equally. DISTRIBUTION OF INCOME BASED ON INTEREST ON INVESTMENTS AND REMAINDER SHARED EQUALLY 2013 Income of Partner Income Distributed 675,000.00 Total Income for Distribution Distribution of Interest: George Lopez (21) Edi Thomas (22) (23) Remaining Income After Interest (24) Equal distribution of remaining income: George Lopez (25) Edi Thomas (26) (27) Remaining income Income of Partners (29) (30) Income of Partner (28) 675,000.00 Income Distributed 580,000.00 2014 Total Income for Distribution Distribution of Interest: George Lopez (31) Edi Thomas (32) (33) Remaining Income After Interest (34) Equal distribution of remaining income: George Lopez (35) Edi Thomas (36) (37) Remaining income (38) Income of Partners (39) (40) 580,000.00 P e. The partners agreed to share income by allowing salaries of P83,000 for Thomas and P60,000 for Lopez, and dividing the remainder by 60 percent for Thomas and 40% for Lopez. DISTRIBUTION OF INCOME BASED ON AGREED AMOUNT OF SALARY PER PARTNER WITH THE REMAINDER SHARED ON SEPCIFIC PERCENTAGES. 2013 Income of Partner Income Distributed Total Income for Distribution Distribution of Salaries: 675,000.00 George Lopez (41) Edi Thomas (42) (45) Remaining Income After Salaries Distribution of remaining income: George Lopez Edi Thomas Remaining income Income of Partners 2014 (46) (49) (50) Income of Partner Total Income for Distribution Distribution of Salaries: George Lopez (51) Edi Thomas (52) Remaining Income After Salaries Distribution of remaining income: George Lopez (55) (56) Edi Thomas Remaining income Income of Partners (59) (60) (43) (44) (47) P 675,000.00 Income Distributed 580,000.00 (53) (54) (57) (58) $80,000.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question
Transcribed Image Text:In January 2013, Edi Thomas and George Lopez agreed to produce and sell chocolate candies
under the company name T&L Chocolates. Thomas contributed P580,000 in cash to the business.
Lopez contributed the building and equipment, valued at P480,000 and P230,000, respectively.
The partnership had an income of P675,000 during 2013 but was less successful during 2014,
when income was only P580,000.
d. The partners agreed to share income by allowing interest of 12
percent on their original investments and dividing the remainder
equally.
DISTRIBUTION OF INCOME BASED ON INTEREST ON INVESTMENTS AND
REMAINDER SHARED EQUALLY
Income of Partner
2013
Income Distributed
675,000.00
Total Income for Distribution
Distribution of Interest:
George Lopez
(21)
Edi Thomas
(22)
(23)
Remaining Income After Interest
(24)
*********
Equal distribution of remaining income:
George Lopez
(25)
Edi Thomas
(26)
(27)
Remaining income
(28)
Income of Partners
(29)
675,000.00
(30)
Income of Partner
2014
P
Income Distributed
580,000.00
Total Income for Distribution
Distribution of Interest:
George Lopez
(31)
Edi Thomas
(32)
(33)
Remaining Income After Interest
(34)
Equal distribution of remaining income:
George Lopez
(35)
(37)
Edi Thomas
Remaining income
(38)
Income of Partners
(39)
(36)
(40)
P
580,000.00
e. The partners agreed to share income by allowing salaries of P83,000
for Thomas and P60,000 for Lopez, and dividing the remainder by 60
percent for Thomas and 40% for Lopez.
DISTRIBUTION OF INCOME BASED ON AGREED AMOUNT OF SALARY PER
PARTNER WITH THE REMAINDER SHARED ON SEPCIFIC PERCENTAGES.
2013
Income of Partner
Income Distributed
Total Income for Distribution
675,000.00
Distribution of Salaries:
George Lopez
(41)
Edi Thomas
(42)
(43)
(44)
(45)
Remaining Income After Salaries
Distribution of remaining income:
George Lopez
Edi Thomas
Remaining income
Income of Partners
2014
(46)
(47)
(48)
675,000.00
(49)
(50)
Income of Partner
Income Distributed
580,000.00
P
Total Income for Distribution
Distribution of Salaries:
George Lopez
(51)
Edi Thomas
(52)
(53)
(54)
(55)
Remaining Income After Salaries
Distribution of remaining income:
George Lopez
Edi Thomas
Remaining income
Income of Partners
(56)
(57)
(58)
(59)
(60)
580,000.00
P
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education