Juan and Pedro’s partnership agreement shows that they will receive a salary of P 150,000 and P 100,000, respectively. Should there be a remainder, such will be divided based on their average capital balances. Below shows information in their respective capital balances: Juan, capital ending balance – P 3,000,000 Debits: June 1 - P 500,000 Credits: March 30 – P 1,000,000 Credits: October 30 – P 500,000 Pedro, capital ending capital balance – P 4,500,000 Credits: May 1 – P 1,000,000 Credits: August 31 – P 1,000,000 Income for the year amounted to P 300,000. How much profit will be distributed to Juan

Juan and Pedro’s partnership agreement shows that they will receive a salary of P 150,000 and P 100,000, respectively. Should there be a remainder, such will be divided based on their average capital balances. Below shows information in their respective capital balances: Juan, capital ending balance – P 3,000,000 Debits: June 1 - P 500,000 Credits: March 30 – P 1,000,000 Credits: October 30 – P 500,000 Pedro, capital ending capital balance – P 4,500,000 Credits: May 1 – P 1,000,000 Credits: August 31 – P 1,000,000 Income for the year amounted to P 300,000. How much profit will be distributed to Juan

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 3CE

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Juan and Pedro’s partnership agreement shows that they will receive a salary of P150,000 and P100,000, respectively. Should there be a remainder, such will be divided based on their average capital balances. Below shows information in their respective capital balances:Juan, capital ending balance – P 3,000,000Debits: June 1 - P 500,000Credits: March 30 – P 1,000,000Credits: October 30 – P 500,000 Pedro, capital ending capital balance – P 4,500,000Credits: May 1 – P 1,000,000Credits: August 31 – P 1,000,000Income for the year amounted to P 300,000. How much profit will be distributed to Juan?
The net income of the Mohammad and Ahmed partnership is 250,000. The partnership agreement specifies that profits and losses will be shared equally after salary allowances of 200,000 (Mohammad) and 300,000 (Ahmed) have been allocated. At the beginning of the year, Mohammad's Capital account had a balance of 500,000 and Ahmed's Capital account had a balance of 650,000. What is the balance of Mohammad's Capital account at the ?end of the year after profits and losses have been distributed 825,000.a O 375,000.b O 625,000 .cO 575,000.d O
driana Gonzalez and Sylvester Van Horne formed a partnership, dividing income as follows: Annual salary allowance to Gonzalez of $25,000. Interest of 5% on each partner’s capital balance on January 1. Any remaining net income divided to Gonzalez and Van Horne, 2:1. Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000. Required: How much net income should be distributed to Gonzalez and Van Horne?Gonzalez: $fill in the blank 1Van Horne: $fill in the blank 2 I got this question wrong for Gonzalez I put 49500 and Van home 24750 wrong.
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The net income of the Pine and Miles partnership is Pi80,000. The partnership agreement specifies that Pine and Miles have a salary allowance of P48,000 and P72,000, respectively. The partnership agreement also specifies an interest allowance of 10% on capital balances at the beginning of the year. Each partner had a beginning capital balance of P120,000. Any remaining net income or net loss is shared equally. What is the balance of Miles' Capital account at the end of the year after net income has been distributed? * O P204,000 P192,000 P222,000 O P210,000