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. c. The partners agreed to share income according to the ratio of their original investments. DISTRIBUTION OF INCOME BASED ON RATIO OF INITIAL INVESTMENTS 2013 2014 For Edi Thomas: 2013: (17) 2014: (18) For George Lopez: 2013: (19) 2014: (20) Totals P 675,000.00 P 580,000.00

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. c. The partners agreed to share income according to the ratio of their original investments. DISTRIBUTION OF INCOME BASED ON RATIO OF INITIAL INVESTMENTS 2013 2014 For Edi Thomas: 2013: (17) 2014: (18) For George Lopez: 2013: (19) 2014: (20) Totals P 675,000.00 P 580,000.00

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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