000,8AItem No. 16 is based on the following information:moTPartners Dy, Pai, and Kwa are in the process of finalizing their profit andloss sharing agreement. They have already agreed that Pai and Kwa are toreceive annual salary of P 45,000 each. Dy, the managing partner, has twooptions.Option 1: He will receive an annual salary of P 110,000; orob bns hoOption 2: He will receive an annual salary of P 90,000 plus a bonus of 20% of thebsd madte profit after subtracting their salaries and his bonus.IauguA no16. What should be the amount of profit so that Dy would get the same shareirrespective of his choice?P 250,000..000,00а.C. P 400,000.С.P 300,000.d. P 450,000.00:00 bas es

Item No. 16 is based on the following information: the Partners Dy, Pai, and Kwa are in the process of finalizing their profit and loss sharing agreement. They have already agreed that Pai and Kwa are to receive annual salary of P 45,000 each. Dy, the managing partner, has two options. Option 1: He will receive an annual salary of P 110,000; or Option 2: He will receive an annual salary of P 90,000 plus a bonus of 20% of the de profit after subtracting their salaries and his bonus. augA no 16. What should be the amount of profit so that Dy would get the same share irrespective of his choice? 000,00 a. P 250,000. P 400,000. iwolfo С. b. P 300,000. d. P 450,000.

Item No. 16 is based on the following information: the Partners Dy, Pai, and Kwa are in the process of finalizing their profit and loss sharing agreement. They have already agreed that Pai and Kwa are to receive annual salary of P 45,000 each. Dy, the managing partner, has two options. Option 1: He will receive an annual salary of P 110,000; or Option 2: He will receive an annual salary of P 90,000 plus a bonus of 20% of the de profit after subtracting their salaries and his bonus. augA no 16. What should be the amount of profit so that Dy would get the same share irrespective of his choice? 000,00 a. P 250,000. P 400,000. iwolfo С. b. P 300,000. d. P 450,000.

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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Bruce, Parker and May formed a partnership. Their capital balances showed the following. Bruce Capital P252,000; Parker, Capital-P126,000; May, Capital-P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000 Violet will pay the money directly to the other partners. How much was the bonus debited or credited in partner Bruce’s capital account?
The terms of a partnership agreement provide that one of the partners is to receive a salary allowance of P30,000, plus a bonus of 20 percent of income after deduction of the bonus and the salary allowance. If income is P150,000, the bonus should be: *
Bruce, Parker and May formed a partnership. Their capital balances showed the following: Bruce, Capital P252,000; Parker, Capital- P126,000; May, Capital- P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000. Violet will pay the money directly to the other partners. How much was the bonus debited or credited in paetner Bruce's capital accounts?
W owes Y, the managing partner of XYZ Partnership, P50,000 due on Oct. 1, 2021. W also owes XYZ partnership P100,000 due on Oct 31, 2021. If W pays the managing partner P50,000. How will the payment be applied? Explain.
Item Nos. 11 and 12 are based on the following information: The partnership contract of partners L and M provides that L, the managing partner is allowed a bonus of 20% of the profit after taxes. The partnership is subject to an income tax rate of 35% of the profit. During 200C, the partnership earned profit before taxes of P 113,000. 11. If the bonus is based on the profit after taxes but before bonus, how much is the bonus of L? а. Р 13,000. P 14,500. С. b. P 13,250. d. P 14,690.
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Jocelyn and Juvelyn decide to form a partnership. Jocelyn invests P25,000 cash and accounts receivable of P30,000 less allowance for doubtful accounts of P2,000. Juvelyn contributes P20,000 cash and equipment having a P6,000 book value. It is agreed that the allowance account should be P3,000 and the fair market value of the equipment is P10,000. How much should the capital of Jocelyn be credited?
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A and B formed a partnership. A and B agreed to share the partnership's profit as follows: A to receive P10,000 salary per month and 5% bonus before salary and bonus • Partners receive P50,000 each for the interest on their average capital. Remainder is to be divided equally ● If A's share in the partnership loss was P80,000 for the year. Compute the partnership income (loss). Encode as a negative amount if the answer is a loss.-
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