Nathan owns the Kavanah Bakeshop. On January 2, 2022, Nathan invited his friend Dwayne to be his business partner, who invested P250,000 for a 50% equity in the partnership. The two agreed to share profit or losses as follows 1.12% interest on average capital, 2 Monthly salary of P12,000 and P10,000 to Nathan and Dwayne respectively 3 Bonus to Nathan of 10% after bonus and salary, and 4 Remaining profit or loss to be divided equally. The partners agreed further to double their investments before the end of the year Dwayne made an sdoitional investment onuty 1 to double his capital while Nathan gave his counterpaEt in two equal installments.on March 1 and July 31. During 2022 Nathan and Dwayne withdrew 80% of their salary allowances At the end of 2022 the income Summary account showed a credit balance of P924,000 In the Statement of Financial Position as of December 31, 2022 the Partners Equity would show

Nathan owns the Kavanah Bakeshop. On January 2, 2022, Nathan invited his friend Dwayne to be his business partner, who invested P250,000 for a 50% equity in the partnership. The two agreed to share profit or losses as follows 1.12% interest on average capital, 2 Monthly salary of P12,000 and P10,000 to Nathan and Dwayne respectively 3 Bonus to Nathan of 10% after bonus and salary, and 4 Remaining profit or loss to be divided equally. The partners agreed further to double their investments before the end of the year Dwayne made an sdoitional investment onuty 1 to double his capital while Nathan gave his counterpaEt in two equal installments.on March 1 and July 31. During 2022 Nathan and Dwayne withdrew 80% of their salary allowances At the end of 2022 the income Summary account showed a credit balance of P924,000 In the Statement of Financial Position as of December 31, 2022 the Partners Equity would show

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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