14. On Jan. 1, 2019, Anatalio, Yecyec, Guzon, and Calimpusan formed Butuan Trading Co., apartnership, with contributions as follows: Anatalio, P50,000; Yecyec, P25,000; Guzon, P25,000 andCalimpusan, P20,000. The partnership contract provided that each partner shall receive a 5% interest oncontributed capital, and that Anatalio and Yecyec shall receive salaries of P5,000 and P3,000,respectively.The contract also provided that Guzon shall receive a minimum of P2,500 per annum, and Calimpusan aminimum of P6,000 per annum, which is inclusive of amounts representing interest and share ofremaining profits. The balance of the profits shall be distributed to Anatalio, Yecyec, Guzon, andCalimpusan in a ratio 3:3:2:2.What amount must be earned by the partnership, before any charge for interest and salaries, so thatAnatalio may receive an aggregate of P12,500 including interest, salary and share of profits?а. Р32,333b. Р30,000P30,667d. P16,667C.

Solution- In the question given Anatalio receive 5 % interest and salary 5000. So Interest of…

Jan. 1, 2019, Anatalio, Yecyec, Guzon, and Calimpusan formed Butuan Trading Co., a partnership, with contributions as follows: Anatalio, P50,000; Yecyec, P25,000; Guzon, P25,000 and Calimpusan, P20,000. The partnership contract provided that each partner shall receive a 5% interest e contributed capital, and that Anatalio and Yecyec shall receive salaries of P5,000 and P3,000, respectively.

Jan. 1, 2019, Anatalio, Yecyec, Guzon, and Calimpusan formed Butuan Trading Co., a partnership, with contributions as follows: Anatalio, P50,000; Yecyec, P25,000; Guzon, P25,000 and Calimpusan, P20,000. The partnership contract provided that each partner shall receive a 5% interest e contributed capital, and that Anatalio and Yecyec shall receive salaries of P5,000 and P3,000, respectively.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: LLL, MMM and NNN are partners who share profits and losses 5:3:2, respectively. On October 1, 2020,…

A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…

Q: The following are the capital account balances and the profit and loss sharing ratio of the partners…

A: On 31.12.2019, Capital account balances and profit and loss sharing ratio of MTR motors are M = 25%…

Q: Amna and Jalal formed a partnership on January 2, 2019. Jalal invested $120,000 in cash. Amna…

Q: Malaluan and Baral are in partnership. They share profits in the ratio 3:2 and close their accounts…

A: Partnership is a form of business which is run by two or more person and profit or loss of the…

Q: On 1 October 2020, Duane and Kevin, two Cryptocurrency advisory professionals, commenced a…

A: A partnership firm is a business structure in which two or more individuals or entities come…

Q: On July 01, 2020, A, B, and C formed a business partnership to be operated as an advertising agency.…

A: SOLUTION- PARTNERSHIP IS THE RELATIONSHIP BETWEEN PARTNERS WHO HAVE AGREED TO SHARE THE FIRMS PROFIT…

Q: On May 1, 2022, AA and BB formed a partnership with each contributing the following assets: Partner…

A: The partnership is an agreement between two or more partners where partners are agreed to work…

Q: At September 30, 2021, C. Saber and J. Wong, the two partners of City Landscaping, had capital…

A: Partnership is the relation between two or more person, It has the following characteristicsThey…

Q: On January 1, 2020, Balagtas, Cabanacan and Dagohoy formed a partnership with the following…

A: Partnership capital accounts are maintained to record the capital contributed by the partners, to…

Q: AAA, BBB and CCC are partners sharing profits in the ratio of 5:3:2, respectively. As of December…

A: Given data, DDD contributed capital is equal to the 15% interest purchase from BBB P12,000 ( 80,000…

Q: Norr and Caylor established a partnership on January 1, 2019. Norr invested cash of $100,000 and…

A: Partnership: Partnership is an entity where minimum of two individuals agrees to carryover the…

Q: ẩẩOj Decembeẩ 2ẩ0ẩ20, Antipolo and Bunao formed a partnership, agreeing to share for profits and…

A: Contributions, other than cash, should be measured at the agreed value which is normally the fair…

Q: P, A and L formed a partnership and have average capital balances of P195,000, 246,000 and 294,000…

A: The operating income after partners’ salaries and bonus = P105,000 An interest of 10% on the average…

Q: Romero and Mason established a partnership on January 1, 2019. Romero invested cash of $150,000 and…

A: Partner's Capital Romero Mason Capital at the beginning Cash $ 150,000 $ 75,000…

Q: On May 1, 2021, Cobb and Mott formed a partnership and agreed to share profits and losses in the…

A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…

Q: On April 1, 2020, Lana, Brent and Marie formed LBM Partnership with original contributions of…

A: SOLUTION- PARTNERSHIP IS AN AGREEMENT BETWEEN TWO OR MORE PERSONS IN WHICH THEY INVEST CAPITAL , RUN…

Question

100%

14. On Jan. 1, 2019, Anatalio, Yecyec, Guzon, and Calimpusan formed Butuan Trading Co., a
partnership, with contributions as follows: Anatalio, P50,000; Yecyec, P25,000; Guzon, P25,000 and
Calimpusan, P20,000. The partnership contract provided that each partner shall receive a 5% interest on
contributed capital, and that Anatalio and Yecyec shall receive salaries of P5,000 and P3,000,
respectively.
The contract also provided that Guzon shall receive a minimum of P2,500 per annum, and Calimpusan a
minimum of P6,000 per annum, which is inclusive of amounts representing interest and share of
remaining profits. The balance of the profits shall be distributed to Anatalio, Yecyec, Guzon, and
Calimpusan in a ratio 3:3:2:2.
What amount must be earned by the partnership, before any charge for interest and salaries, so that
Anatalio may receive an aggregate of P12,500 including interest, salary and share of profits?
а. Р32,333
b. Р30,000
P30,667
d. P16,667
C.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

On January 1, 2023, AA and BB formed AB partnership with a total agreed capital of P5,000,000 and a capital interest ratio of 70:30. The following were ascertained during the year as to distribution of profits and losses: • AA will receive quarterly salaries of P100,000 5% interest on initial capital will be provided Any remainder will be shared by their capital contribution ratio At the end of the year, the partnership had a P500,000 credit balance in its income summary account. How much is the share of AA in the partnership income (loss)?
On 1 October 2019, Johann and Wynona, two computer programmers, commenced apartnership. As Johann had contributed most of the working capital, the partnership agreement provided that Johann would receive 60% of the net partnership income. For the year ended 30 June 2020, the partnership returned net profit of $140,000. This was after a payment of $20,000 in interest to Johann on the $120,000 capital which he had contributed to the partnership. Half of the partnership income is derived from overseas sources. Wynona is a non-resident of Australia for tax purposes. What is Wynona’s Australian assessable income? a. Nil b. $70,000 c. $28,000 d. $90,000
Amal, Asma and Maali started a Partnership Firm on January 1, 2021 with capital OMR 30,000 OMR 20,000 and OMR 10,000 respectively and share profits in the ratio of 3:2:1. The Partnership Deed provided that Asma is to be paid Salary of OMR 200 p.m. and Amal Commission of OMR 1,000. It also provided that Interest on Capital be allowed @ 5% p.a. The Drawings for the year were: Amal OMR 1,000, Asma OMR 5,000 and Maali OMR 3,000. Interest on Drawings was OMR 100 for Amal, OMR 50 for Asma and OMR 30 for Maali. The net amount of profit as per the Profit and Loss Account for the year ended 2021 was OMR 24,000. You are required to record the necessary journal entries relating to appropriation of profit and prepare the profit and loss appropriation account and the partners' capital accounts.
Partners A and B formed a partnership on January 1, 2020 where Partner A invested P500,000 while Partner B invested P300,000. Profit and loss as agreed upon by partners is to be shared in the ratio of the original capital. The drawing accounts of Partners A and B have debit balances of P24,000 and P12,000 respectively. Net income for the period ending December 31, 2020 amounted to P180,200. What is capital balance of Partner B for the year ending December 31, 2020?
On March 1, 2018, X and Y formed a partnership. The partners contributed the following: (see attached image) The partners agree on the following:a. P10,000 of the accounts receivable of X is to be written-off.b. An allowance for doubtful accounts of 15% is to be established on the remaining receivables of X and Y.c. The inventory of Y is to be valued at P140,000.d. The equipment of X is under depreciated by P20,000 and the equipment of Y has a fair value of P190,000.e. The note of X is dated December 1, 2017 and is subject to a 12% interest. Interest had not yet been accrued.f. The partners agree on a 2:1 profit and loss ratio.g. The partners agree to bring their capital balance proportionate to their profit and loss ratio.Requirement:1. If Y's Capital is to be used as basis, how much is the adjusted capital of X after the formation? 2. What is the total assets of the partnership immediately after the formation?3. If the goodwill method is to be used in determining the capital of each…
Peter and Paul formed a partnership on January 1, 2020, and agreed to share net income and losses 90 percent and 10 percent, respectively. Peter invested cash of P250,000. Paul invested no assets but had a specialized expertise and managed the firm full time. The partnership contract provided for the following: a. Partners' capital accounts are to be credited annually with interest at 5 percent of beginning capital account balances. b. Paul is to be paid a salary of P 10,000 a month. c. Paul is to receive a bonus of 20 percent of income before deduction of salary, bonus and interest on partners' capital account balances. d. Bonus, interest, and Paul salary are considered expenses. The Income Statement for the year ended 2015 for the partnership includes the following: Revenue P 964,500 Expenses (including salary and interest) 497,000 Net income P 467,500 What is Paul's share in net income?
1. On May 1, 2019, Gonzaga and Balace formed a partnershipandagreed to share profits and losses in the ratio of 3:7, respectively. Gonzaga contributed a parcel of land that cost P10,000. Balace contributed P40,000 cash. The land was sold for P18,000 on May 1,2019, immediately after formation of the partnership. What amount should be recorded in Gonzaga's capital account on formation of the partnership? a. P15,000 b. P17,400 P10,000 C. d. P18,000
The capital account for the partnership of A and B at March 31, 2020 are as follows: A, Capital - 80,000 B, Capital - 40,000 The partners share profits and losses in the ratio of 3:2 respectively. The partnership decided to admit C as a partner with 1/3 interest in the capital and profits and losses upon his contribution of P30,000. Immediately after C's admission, what should be the capital balances of A, B, and C respectively, assuming bonus is to be recognized?