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Only answer 4 and 5 under the Required.

Only answer 4 and 5 under the Required.

FINANCIAL ACCOUNTING
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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Only answer 4 and 5 under the Required. 

Problem Below are the capital changes occurred on MonaLisa Partnership for the first year of operations: Date Mona, Capital Lisa, Capital Jan. 1 (original investment) P88,000 P69,000 Apr. 1 (3,000) Jun. 1 14,000 Oct. 1 6,000 (4,500) During the first year, the partnership earned net income of P66,600. Temporary withdrawals of P100 cash per month were agreed by both partners, and they both started withdrawing cash in July, and consistently made it monthly until year-end. Required: Determine the ending capital balances of both partners based on the following independent assumptions on allocating profits and losses. A P9,600 incentive to Mona, and the remainder to be allocated on the ratio of 1:2, respectively. It is also agreed that Lisa is guaranteed to receive at least P35,000 in case the partnership yields profit. 1. A 6% interest based on average capital balances, a monthly salary of P10,000 each to Mona and Lisa, and the remainder to be allocated equally. 2. A 10% interest on their ending capital balances, a bonus of 11% to Lisa based on profits after deducting the bonus, and the remainder to be divided in a 3:2 ratio, respectively. 3. Annual salary of P180,000 to Mona and P120,000 to Lisa, a bonus of 10% to Mona based on profits after salaries, and the remainder to be allocated equally. 4. An 8% interest based on original investments, annual salary of P18,720 each partner, a 5% bonus to Lisa based on profits after interests and salaries, and the remainder to be allocated equally. 5.
Transcribed Image Text:Problem Below are the capital changes occurred on MonaLisa Partnership for the first year of operations: Date Mona, Capital Lisa, Capital Jan. 1 (original investment) P88,000 P69,000 Apr. 1 (3,000) Jun. 1 14,000 Oct. 1 6,000 (4,500) During the first year, the partnership earned net income of P66,600. Temporary withdrawals of P100 cash per month were agreed by both partners, and they both started withdrawing cash in July, and consistently made it monthly until year-end. Required: Determine the ending capital balances of both partners based on the following independent assumptions on allocating profits and losses. A P9,600 incentive to Mona, and the remainder to be allocated on the ratio of 1:2, respectively. It is also agreed that Lisa is guaranteed to receive at least P35,000 in case the partnership yields profit. 1. A 6% interest based on average capital balances, a monthly salary of P10,000 each to Mona and Lisa, and the remainder to be allocated equally. 2. A 10% interest on their ending capital balances, a bonus of 11% to Lisa based on profits after deducting the bonus, and the remainder to be divided in a 3:2 ratio, respectively. 3. Annual salary of P180,000 to Mona and P120,000 to Lisa, a bonus of 10% to Mona based on profits after salaries, and the remainder to be allocated equally. 4. An 8% interest based on original investments, annual salary of P18,720 each partner, a 5% bonus to Lisa based on profits after interests and salaries, and the remainder to be allocated equally. 5.
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