James, Gian, and Jane formed a partnership on January 1, 2015, with investments of P100,000, P150,000, and P200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of P10,000 to Gian, and (3) sharing the remainder of the income or loss in a ratio of 20% for James, and 40% each for Gian and Jane. Net income was P150,000 in 2015 and P180,000 in 2016. Each partner withdrew P1,000 for personal use every month during 2015 and 2016. What was James' share of income for 2015? A. 63,000 B. 53,000 C. 58,000 D. 29,000
James, Gian, and Jane formed a partnership on January 1, 2015, with investments of P100,000, P150,000, and P200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of P10,000 to Gian, and (3) sharing the remainder of the income or loss in a ratio of 20% for James, and 40% each for Gian and Jane. Net income was P150,000 in 2015 and P180,000 in 2016. Each partner withdrew P1,000 for personal use every month during 2015 and 2016. What was James' share of income for 2015? A. 63,000 B. 53,000 C. 58,000 D. 29,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
James, Gian, and Jane formed a partnership on January 1, 2015, with investments of P100,000, P150,000, and P200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of P10,000 to Gian, and (3) sharing the remainder of the income or loss in a ratio of 20% for James, and 40% each for Gian and Jane. Net income was P150,000 in 2015 and P180,000 in 2016. Each partner withdrew P1,000 for personal use every month during 2015 and 2016. What was James' share of income for 2015?
A. 63,000
B. 53,000
C. 58,000
D. 29,000
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 2 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