Questions 2 and 3 are based on the following: Several years ago, Roel and Jek formed RJ Partnership. The partnership agreement states that each partner is to receive a salary of P10,000 per month and 5% interest on beginning-of-the-year capital balances; any remainder would be divided between Roel and Jek in the ratio 2:3, respectively. The unadjusted trial balance of RJ Partnership as of December 31, 2020, appears as follows: Cash Accounts receivable Inventory, January 1, 2020 Furniture & fixtures, net Building, net Roel Drawing Jek, drawing Purchases Operating expenses Total P 500,000 300,000 400,000 150,000 300,000 100,000 120,000 600,000 250.000 2.720.000 Accounts payable Notes payable Roel, capital Jek, capital Sales Total 2. Determine the share of partner Roel on the net Income of 2020, A. P46,100 B. (P21,100) Additional information: 1. December 31, 2020, inventory was P550,000. 2020 purchases of P600,000 were recorded using the Periodic inventory method. 2. Depreciation for 2020 on furniture and fixtures and building is determined to be 10% and 20% respectively. of net valuation. 3. On July 1, 2020, the partnership recorded a P100,000 additional capital contribution by Jek. Roel made no additional capital contributions during the year. C. (P19,100) P 350,000 200,000 750,000 620,000 800,000 3. Determine the ending capital balance of partner Jek on December 31, 2020. A. P480,900 B. P580,900 C. P694,100 P2.720.000 D. P44,100 D. P478,900
Questions 2 and 3 are based on the following: Several years ago, Roel and Jek formed RJ Partnership. The partnership agreement states that each partner is to receive a salary of P10,000 per month and 5% interest on beginning-of-the-year capital balances; any remainder would be divided between Roel and Jek in the ratio 2:3, respectively. The unadjusted trial balance of RJ Partnership as of December 31, 2020, appears as follows: Cash Accounts receivable Inventory, January 1, 2020 Furniture & fixtures, net Building, net Roel Drawing Jek, drawing Purchases Operating expenses Total P 500,000 300,000 400,000 150,000 300,000 100,000 120,000 600,000 250.000 2.720.000 Accounts payable Notes payable Roel, capital Jek, capital Sales Total 2. Determine the share of partner Roel on the net Income of 2020, A. P46,100 B. (P21,100) Additional information: 1. December 31, 2020, inventory was P550,000. 2020 purchases of P600,000 were recorded using the Periodic inventory method. 2. Depreciation for 2020 on furniture and fixtures and building is determined to be 10% and 20% respectively. of net valuation. 3. On July 1, 2020, the partnership recorded a P100,000 additional capital contribution by Jek. Roel made no additional capital contributions during the year. C. (P19,100) P 350,000 200,000 750,000 620,000 800,000 3. Determine the ending capital balance of partner Jek on December 31, 2020. A. P480,900 B. P580,900 C. P694,100 P2.720.000 D. P44,100 D. P478,900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Questions 2 and 3 are based on the following:
Several years ago, Roel and Jek formed RJ Partnership. The partnership agreement states that each partner is to
receive a salary of P10,000 per month and 5% interest on beginning-of-the-year capital balances; any remainder
would be divided between Roel and Jek in the ratio 2:3, respectively. The unadjusted trial balance of RJ Partnership
as of December 31, 2020, appears as follows:
3.
Cash
Accounts receivable
Inventory, January 1, 2020
Furniture & fixtures, net
Building, net
Roel Drawing
Jek, drawing
Purchases
Operating expenses
Total
P 500,000
300,000
400,000
150,000
300,000
100,000
120,000
600,000
250,000
2.720.000
Accounts payable
Notes payable
Roel, capital
Jek, capital
Sales
Total
2. Determine the share of partner Roel on the net Income of 2020,
A. P46,100
B. (P21,100)
Additional information:
1. December 31, 2020, inventory was P550,000. 2020 purchases of P600,000 were recorded using the Periodic
inventory method.
2. Depreciation for 2020 on furniture and fixtures and building is determined to be 10% and 20%
P 350,000
200,000
750,000
620,000
800,000
respectively.
of net valuation.
3.
On July 1, 2020, the partnership recorded a P100,000 additional capital contribution by Jek. Roel made no
additional capital contributions during the year.
C. (P19,100)
P2.720.000
Determine the ending capital balance of partner Jek on December 31, 2020.
A. P480,900
B. P580,900
C. P694,100
D. P44,100
D. P478,900
WN
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