Problem number 7Rules for the distribution of profits or losses SCORE:NAME:PROFESSOR:SECTION:Problem #7Rules for the Distribution of Profits or LossesLaguna and Cadelina share profits and losses on a fractional-share basis with two-fifthsfor Laguna and three-fifths for Cadelina. This year the firm has profits of P650,000. Thebeginning Capital balanceCadelina. The balances of the Drawing accounts are P300,000 for Laguna and P240,000for Cadelina.for the year were P900,000 for Laguna and P1,300,000 forRequired:Journalize the entries to close income summary and the partners' drawing accounts onDec. 31.

Partners Capital-: Partners Capital is the amount or sum total amount that a partner brings into the…

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Business

Accounting

Problem number 7 Rules for the distribution of profits or losses

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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Problem number 7 Rules for the distribution of profits or losses

SCORE:
NAME:
PROFESSOR:
SECTION:
Problem #7
Rules for the Distribution of Profits or Losses
Laguna and Cadelina share profits and losses on a fractional-share basis with two-fifths
for Laguna and three-fifths for Cadelina. This year the firm has profits of P650,000. The
beginning Capital balance
Cadelina. The balances of the Drawing accounts are P300,000 for Laguna and P240,000
for Cadelina.
for the year were P900,000 for Laguna and P1,300,000 for
Required:
Journalize the entries to close income summary and the partners' drawing accounts on
Dec. 31.

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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