On January 01, 2018, WORD, EXCEL and POWERPOINT formed MICROSOFT Partnership with original contribution of P300,000, P500,000 and P200,000. WORD is appointed as managing partner. During 2018, WORD, EXCEL and POWERPOINT made additional investments of P500,000, P200,000 and P300,000, respectively. At the end of 2018, the capital balance of POWERPOINT is reported at P320,000. The profit or loss agreement of the partners is provided below: • 10% interest on original capital contribution of the partners. ● Quarterly salary of P40,000 and P10,000 for WORD and EXCEL, respectively. Bonus to WORD equivalent to 20% of Net Income after interest and salary to all partners

On January 01, 2018, WORD, EXCEL and POWERPOINT formed MICROSOFT Partnership with original contribution of P300,000, P500,000 and P200,000. WORD is appointed as managing partner. During 2018, WORD, EXCEL and POWERPOINT made additional investments of P500,000, P200,000 and P300,000, respectively. At the end of 2018, the capital balance of POWERPOINT is reported at P320,000. The profit or loss agreement of the partners is provided below: • 10% interest on original capital contribution of the partners. ● Quarterly salary of P40,000 and P10,000 for WORD and EXCEL, respectively. Bonus to WORD equivalent to 20% of Net Income after interest and salary to all partners

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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