Interest of 12% on the average capital during 2022 of the three partners
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- Current Attempt in Progress For Pharoah Co., beginning capital balances on January 1, 2022, are Nancy Payne $23,300 and Ann Dody $22,500. During the year, drawings were Payne $7,600 and Dody $5,700. Net income was $31,800, and the partners share income equally. (a) (b) Prepare the owners' equity section of the balance sheet at December 31, 2022. eTextbook and Media PHAROAH CO. Partial Balance Sheet December 31, 2022In January 1, 2020, A and B have capital balances of P 200,000 and P 300,000 respectively. On July 1,2020, A invests an additional P 10,000 and B withdraws P 11,600. Profits and losses are divided as follows: - Each of the partners shall be given 3,000 monthly salary; - Interest of 12% on ending capital balances; - Bonus to B of 10% of profit after salary but before interest and bonus if profit exceeds 500,000 for the year. - Any remainder is divided in the ratio of their capital balances at the start of the year. Revenues for the year totaled P 1,000,000 and Expenses amounted 300,000 How much is B's share in net income/ net losses? A. 273,356.80 b. 263,356.80 C. 436,643.20 D. 473,356.801. Show how the following items will appear in the capital accounts of the partners Ali and Ahmed when their capital is a) fixed b) fluctuating Particulars Ali (R.O) Ahmed(R.O) Capital on 01.01.2021 90,000 70,000 Drawings during 2021-2022 12,000 9,000 Interest on Drawings 360 270 Interest on Capital 5,400 4,200 Partner's salary 12,000 Commission 6,000 Share of profit for 2021-22 6,000 4,000
- 10. The partners' capital (income-sharing ratio in parentheses) of Acosta, Bautista, Campos, & Dela Cruz LLP on May 31, 2020, was as follows: P195,000 Acosta (20%) Bautista (20%) Campos (20%) Dela Cruz (40%) Total partners' capital (20%) P812,500 260,000 227,500 130,000 On May 31, 2020, with the consent of Acosta, Bautista, and Dela Cruz: a. Sam Campos retired from the partnership and was paid P162,500 cash in full settlement of his interest in the partnership. b. Lois Elon was admitted to the partnership with a P65,000 cash investment for a 10% interest in the net assets of Acosta, Bautista, Dela Cruz & Elon LLP. The capital account to be credited to Elon: a. P71,500 b. P87,750 C. P65,000 d. P81,250 194Prepare the Statement of Changes in Equity of Camray Traders for the year ended 28 February 2021 using template provided The following must be taken into account:(a) The net profit according to the statement of comprehensive income amounted to R1 400 000 on 28 February2021.(b) The partnership agreement made provision for the following:¦ Interest on capital must be provided at 18% per annum on the balances in the capital accounts.Note: Camy increased her capital by R240 000 on 01 September 2020. Raymond decreased his capital byR120 000 on the same date. The capital changes have been recorded.¦ The partners are entitled to the following monthly salaries:Camy R26 000Raymond R25 000Note: The partners’ salaries were increased by 10% with effect from 01 December 2020.¦ Camy and Raymond share the remaining profits or losses equally.Assuming the partnership earned P200,000 profit in 2020. Since they are both active in partnership's affair, each one will receive a 50,000 salaryallowance per year determine the new partners' capital after the distribution of profit and loss.
- During 2020, ASHE and JINX maintained average capital balances of in their partnership of P200,000 and P150,000, respectively. Both partners receive 10% interest on average capital balances, and residual profit or loss is to be divided equally. Partnership profit before interest was P10,000. By what amount should JINX's capital account change for the year?On November 10, 2020, Maher, Saher, and Taher, partners of Maher, Saher, & Taher LLP, had capital account balances of $40,000, $50,000, and $18,000, respectively, and shared net income and losses in a 4 : 2 : 1 ratio respectively. the Capital per unit of income sharing ratio for Maher would be: a. $40,000. b. $10,000. c. $20,000. d. $25,000.The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: Jones, the managing partner, receives a bonus equal to 15 percent of the business's profit. Each partner receives 18 percent interest on average capital investment. Any residual profit or loss is divided equally. The average capital investments for 2018 for 2018 were as follows: Jones $250,000 King $350,000 Lane $525,000 How much of the $78,000 partnership profit for 2018 should be assigned to each partner?
- A and B formed a Partnership on January 1, 2020. Partner A’s contributed capital amounted to P40,000, while partner B’s contributed capital amounted to P20,000. The Partnership agreement provides for the following: Capital accounts are to be credited annually with interest at 5% of the beginning capital. Partner B is to be paid salary of P6,000 quarterly. Partner B is to receive a bonus of 10% based on the net income The Partnership's income statement for the year ended is as follows: Revenues, P105,000Expenses (including salary, interest, and bonus), 30,000Net income, 75,000 What is partner's B 2020 bonus? Group of answer choices 9,273 7,500 9,333 11,333Partners Charlie and Delta share profits in the ratio of 6:4 respectively. On December 31, 2018 their respective capital balances were Charlie, P120,000 and Delta, P100,000. On that date Mae was admitted as partner with a one-third interest in capital and profits for an investment of P80,000. The new partnership began in 2019 with total capital of P300,000. Immediately after Mae’s admission, Charlie’s capital should be: a.P160,000 b.P108,000 c.P120,000 d.P100,000On April 1, 2020, Harry Regal and Meghan Merle formed a partnership in Alberta, renting reusable moving boxes. Contribution Regal $97,000 cash Merle $137,000 land $50,000 building Profit sharing $107,000 salary allowance 15% of original capital investments $77,000 15% of original capital investments $62,000 Cash withdrawal during year Net Income during the year was $177,000 and was in the Income Summary account. The partners agreed to share profit by allowing salary allowance, interest on their initial investments, and sharing the balance equally. Required: 1. Present general journal entries to record the initial capital investments of the partners, their cash withdrawals, and the December 31 closing of the Income Summary and withdrawals accounts.