See the problem in the photo.On May 31, 2018, with the consent of Rivadelo, Del Mundo, and Samson:a. Galvan retired from the partnership and was paid P50,000 cash in full settlement of his interest in thepartnership.b. Mamitag was admitted to the partnership with a P20,000 cash investment for a 10% interest in the net assets ofthe partnership. No goodwill will be recognized.Prepare the journal entries to record the foregoing events. B. The partner's capital (income-sharing ratio in parentheses) of Rivadelo, Del Mundo, Galvan and Samson on May31, 2018, was as follows:Rivadelo (20%)P 60,000Del Mundo (20%)80,000Galvan (20%)70,000Samson (40%)40,000Total Partners' Capital250,000On May 31, 2018, with the consent of Rivadelo, Del Mundo, and Samson:a. Galvan retired from the partnership and was paid P50,000 cash in full settlement of his interest in thepartnership.b. Mamitag was admitted to the partnership with a P20,000 cash investment for a 10% interest in the net assets ofthe partnership. No goodwill will be recognized.Prepare the journal entries to record the foregoing events.

Partnership: A business entity created by legal agreement between two or more persons for the…

Answered: Prepare the journal entries to record…

Business

Accounting

Prepare the journal entries to record the foregoing events.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 9E

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For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000 Question 5 If the profits are to be divided based on average capital, how much will be the share of AMMAR?
GWS and BCP organized the GB Partnership on January 1, 2018. The following entries were made in their capital accounts during 2018. Debit Credit GWS, Capital: January 1 April 1 October 1 P315,000 P105,000 175,000 Debit Credit ВСР, Саpital: January 1 March P413,000 1 September 1 November 1 52,500 105,000 94,500 Required: А. If the partnership profit for the year 2018 computed before salaries or interest is P217,000, determine its distribution between the partners under each of the following independent profit-sharing agreements: (1) Interest at 6% is allowed on average capital investments and the remainder of the profit is divided equally. (2) A salary of P126,000 is to be credited to BCP, 6% interest is allowed on each partner on his ending capital balance and the remainder of the profit in the ratio of 3:2. Salaries are allowed GWS and BCP in amounts of P119,000 and P133,000, respectively, and the remaining profit or resulting loss is divided in the ratio of average capital balance.…
3.On march 1, 2015, the capital account of fish would sbow a blance of: 2. Assuming that the partners agreed to bring thier respective capital in proportion to thuer respectuve profit and loss ratio, and using fish capital as the base, how much cash is to be invested by cat?
7. The partnership agreement of Hi and Rap provides that interest at 14% per year is to be credited to each partner on the basis of weighted average capital balances. A summaryof Rap capital account for the year ended December 31, 2015, is as follows:Balance, January 1 P210,000Additional investment, July 1 60,000Withdrawal, August 1 (22,500)Balance, December 31 P247,500What amount of interest should be credited to Rap’s capital account for 2015?
I. Account balances of MAME partnership as of June 30, 2020 are as follows:
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For Crane Co., beginning capital balances on January 1, 2022, are Nancy Payne $21,200 and Ann Dody $17,200. During the year, drawings were Payne $7,000 and Dody $5,900. Net income was $26,500, and the partners share income equally. (a) Prepare the partners' capital statement for the year. (List Items that increase partners' capital first.) (b) : eTextbook and Medial Save for Later $ $ CRANE CO. Partners' Capital Statement N. Payne Prepare the owners' equity section of the balance sheet at December 31, 2022. CRANE CO. Partial Balance Sheet $ $ A. Dody Attempts: 0 of 5 used Total Submit Answer
II. The partners' capital (income-sharing ratio in parenthesis) of Fiona, Shrek, Donkey and Puss on May 31, 2020, was as follows: Fiona (20%) - P60,000; Shrek (20%) - P80,000; Donkey (20%) - P70,000; Puss (40%) - P40,000. On May 31, 2020, with the consent of Fiona, Shrek and Puss, Donkey retired from the partnership and was paid P50,000 cash in full settlement of his interest in the partnership. Determine the capital balance of Shrek after the retirement of Donkey assuming the bonus approach.
Use the following information for numbers 29 and 30. On June 30, 2018, the balance sheet for the partnership of D, E and F, together with their respective profit and loss ratios, is summarized as follows: Assets 300,000 D, Loan 15,000 D, Capital (20%) 70,000 E, Capital (20%) F, Capital (60%) Total Liabilit ies and Capital 65,000 150,000 Total Assets 300,000 300,000 D has decided to retire from the partnership, and by mutual agreement the assets are to be adjusted to their fair values of P260,000 at June 30, 2018. It is agreed that the partnership will pay D, P102,000 cash for his interest exclusive of his loan which is to be repaid in full. After D's retirement, what are the capital balances of each partner? 29. Partner E. 30. Partner F.
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On January 1, 2022, A, B and C formed ABC Partnership with agreed capital of P1,200,000 or P400,000 each. Profit is to be allocated equally. C is appointed as the managing partner. Capital/Drawings transactions during the year: . A, B and C made additional investments of P200,000 each respectively. . At the end of year, A, B and C made drawings of P50,000, P30,000 and P40,000, respectively. . At the end of year, the capital balance of B is reported at P400,000. Compute the ending capital of C.