On June 30, 2008, Jamal, the sole proprietor of the Jamal Company, expands the company and establish a partnership with Jumong and Jabongga. The partners plan to share profits and losses as follows: Jamal, 50%; Jumong, 25%; and Jabongga, 25%. They also agree that the beginning capital balances of the partnership will reflect this same relationship. Jamal asked Jumong to join the partnership because his many business contacts are expected to be valuable during expansion. Jumong is also contributing P28,000 cash. Jabongga is contributing P11,000 cash and marketable securities costing P42,000 to Jabongga but are currently worth P57,500. Jamal's investment in the partnership is the Jamal Company. He plans to pay off the notes with personal assets. The other partners have agreed that partnership will assume the accounts payable. The Statement of Financial Position for the Jamal Company follows: Jamal Company Statement of Financial Position June 30, 2008 Assets Cash P 10,000 Accounts receivable (net) 48,000 Inventory 72,000 Equipment (net of accumulated depreciation, P20,000) 70,000 P 200,000 Total Assets Liabilities and Capital P 53,000 62,000 Accounts Payable Notes Payable Jamal, Capital Total Liabilities and Capital 85,000 P 200,000
On June 30, 2008, Jamal, the sole proprietor of the Jamal Company, expands the company and establish a partnership with Jumong and Jabongga. The partners plan to share profits and losses as follows: Jamal, 50%; Jumong, 25%; and Jabongga, 25%. They also agree that the beginning capital balances of the partnership will reflect this same relationship. Jamal asked Jumong to join the partnership because his many business contacts are expected to be valuable during expansion. Jumong is also contributing P28,000 cash. Jabongga is contributing P11,000 cash and marketable securities costing P42,000 to Jabongga but are currently worth P57,500. Jamal's investment in the partnership is the Jamal Company. He plans to pay off the notes with personal assets. The other partners have agreed that partnership will assume the accounts payable. The Statement of Financial Position for the Jamal Company follows: Jamal Company Statement of Financial Position June 30, 2008 Assets Cash P 10,000 Accounts receivable (net) 48,000 Inventory 72,000 Equipment (net of accumulated depreciation, P20,000) 70,000 P 200,000 Total Assets Liabilities and Capital P 53,000 62,000 Accounts Payable Notes Payable Jamal, Capital Total Liabilities and Capital 85,000 P 200,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ADDITIONAL INFORMATION:
The partners agree that the inventory is worth P85,000, and the equipment is worth half of its original cost, and the allowance established for doubtful accounts is correct.
REQUIRED: Compute the Bonus received by Jumong.
Transcribed Image Text:On June 30, 2008, Jamal, the sole proprietor of the Jamal Company,
expands the company and establisha partnership with Jumong and
Jabongga. The partners plan to share profits and losses as follows: Jamal,
50%; Jumong, 25%; and Jabongga, 25%. They also agree that the
beginning capital balances of the partnership will reflect this same
relationship. Jamal asked Jumong to join the partnership because his
many business contacts are expected to be valuable during expansion.
Jumong is also contributing P28,000 cash. Jabongga is contributing
P11,000 cash and marketable securities costing P42,000 to Jabongga but
are currently worth P57,500. Jamal's investment in the partnership is the
Jamal Company. He plans to pay off the notes with personal assets. The
other partners have agreed that partnership will assume the accounts
payable. The Statement of Financial Position for the Jamal Company
follows:
Jamal Company
Statement of Financial Position
June 30, 2008
Assets
Cash
P 10,000
Accounts receivable (net)
48,000
Inventory
72,000
Equipment (net of accumulated depreciation, P20,000)
70,000
Total Assets
P 200,000
Liabilities and Capital
P 53,000
Accounts Payable
Notes Payable
Jamal, Capital
Total Liabilities and Capital
62,000
85,000
P 200,000
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!
Trending now
This is a popular solution!
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