3.10 Partners A and B share profits 3:1 after annual salary allowances ofP 4,000 and P 6,000, respectively. If profits are not adequate to meetthe salary allowances, the entire profit is to be divided using thesalary ratio. The net profit reported during the year amounted toP 9,000. The following year, prior to the closing of the books, It wasascertained that the net income for the previous year did not reflectthe overstatement in depreciation by P 3,600 and an understatementin the ending inventory by P 800.REQUIRED: Give the correcting compound entry.

Compound entry is the entry which has been entered and recorded by the company in the journal book…

Answered: REQUIRED: Give the correcting compound…

Business

Accounting

REQUIRED: Give the correcting compound entry.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 2SEA

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3.14 Cue and Peed entered into a partnership on March 1, 200A. They T agreed that Cue, the managing partner was to receive a salary 10 neallowance of P 24,000 per year and a bonus of 10% of the net profit after the salary allowance but before the bonus. The balance is to b e distributed in the ratio of their initial capital. Selected ledger accounts on December 31, 200A prior to adjustments showed the following balances: Salesgns 22ol bns P 300,000 ge gnisda o3,000 ollo) visoo 180,000 1sini s10 48,000 Sales Returns 290sw zunod ts Purchases 1 Operating Expenses bs la01Stni o1o 48,000 200,000 00020,000 1o g 2290x Cue Capital Cue Drawing Peed Capital 0 Peed Drawing Inventories at year-end were bns I 100,000 10,000 as follows: Office supplies, P 810 and merchandise, P 50,000. Prepaid insurance of 0P 1,200 and accrued expenses of P 400 are to be recognized. Depreciation of P 4,000 is to be provided. REQUIRED: Prepare the Statement of Partners ' Equity for the 10- month period ended December…
PROBLEM: ZOE and ZIA PARTNERSHIP reported income for the year 2021 was P250,000.00 and the partners divide their profit 70:30 respectively. In January 2022, they changed the ratio to 50:50. During 2022, the following errors were discovered for the 2021 net income. 1. Depreciation was overstated by 30,000.00. 2. Prepaid rent for 20,000 was ommitted. 2. Accrued interest payable was ommitted worth 25,000.00 Required: 1. Compute the correct net income for 2021. 2. Compute the correct share of each partner in the net income for 2021. 3. Compute the difference of the share actually received and should have received by each partner in 2021. 4. Prepare the journal entry to record the adjustment of the partner's capital account on December 31, 2022.
3.11 Apple and Green started a business as a partnership on January 1, 200A. Apple contributed P 36,000 and Green contributed P 30,000. It was agreed that earnings after interest and salary allowances would be divided in the ratio of 2/3 and 1/3 to Apple and to Green, respectively. Interest of 4% per annum on the beginning capital balances will be allowed. Earnings, salaries, and withdrawals for 200OA and 200B were: Earnings before Interest and Salaries Apple P 11,590 24,600 Salaries paid Green Р6,000 6,000 Withdrawals Apple P 6,140 P 4,850 7,152 Green P 4,000 4,000 200A 200B 4,048 REQUIRED: Statement of Partners' Equity for both years.
Distribution of Profits and Losses: 3. Bunag, Belen, and Bustos are partners in an accounting firm. Their capital account balances at year-end were P180,000, P220,000, and P100,000, respectively. They share profits and losses on a 4:4:2, ratio respectively, after considering the following terms: a. Bustos is to receive a bonus of 10% of profit after deducting bonus b. Interest of 10% shall be paid on that portion of a partner's capital in excess of P200,000. c. Salaries of P20,000 and P24,000 shall be paid to partners Bunag and Bustos, respectively. Assuming a profit of P220,000 for the year. REQUIRED: Prepare the following: A. Profit or Loss Distribution Table B. Corresponding JOURNAL ENTRY to distribute profit or loss
1. Annual salary allowance to Gonzalez of $25,000. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Gonzalez and Van Home, 2:1. Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000. Required: How much net income should be distributed to Gonzalez and Van Horne? Gonzalez: Van Horne: S
answer the requirements with complete solution
The partnership of Chase and Chloe shares profits and losses in a 70:30 ratio respectively after Chloe receives a $10,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $ 30,000 B. $ 6,000 C. ($10,000)
aj.3 The Joseph and Rodin partnership agreement stipulates that profits and losses will be shared equally after salary allowances of $393000 for Joseph and $210000 for Rodin. At the beginning of the year. Joseph's Capital account had a bal ance of $ 796000, while Rodin's Capital account had a balance of $691000. Net income for the year was $49000. The balance of Rodins Capital account at the end of the year after closing is $957500. $901000. $201000. $844500.
14. The net income agreement for Molina and Serraon states net income and net loss shall be divided in a ratio of 4:6, respectively. The net loss for the current year is P50,000. On January 1 of the current year, the capital balances were as follows: Molina, P55,000; and Serraon, P65,000. During the current year Molina withdrew P40,000 and Serraon withdrew P25,000. Compute the capital balances as of December 31 of the current year. Molina, capital debit of P5,000 Serraon, capital credit of P10,000 a. b. credit of P35,000 credit of P70,000 credit of P5,000 С. credit of P10,000 d. none of the above
Required: Schedule of Profit Distribútion at the end of the period. OKsignment! 17 -5 Lucas Lara IV and Zola Mae Caumban started their partnership business two years ago Their partnership agreement provided among others, the following: 1. Lara, being a managing partner shall receive an annual salary of P20,000; 2. Caumban shall be entitled for an annual bonus of 10% of profit; 3. Interest of 10% on their respective ending capital balances of P85,000 and P150,000; 4. Any remainder not to exceed P30,000 shall be shared equally and in excess of P30,000 on the ratio 30%-70%. Required: Schedule of Profit Distribution assuming that profit for the year endeu December 31, 20A was: b) P80,000 a) P60,000
NOTE: please do not do the devision of net income. Just the other subparts. Thank you.
Illustration 5- X, Y and Z were partners sharing profits in the ratio of 3:2:1. Y retires, X and Z have agreed that the capital of the new firm will be fixed at $ 2,00,000 in the profit sharing ratio. The Capital Accounts of X and Z shows a balance of $ 1,67,500 and $ 45,000 respectively on the date of retirement after making all the adjustments. Show the adjustment of Capital Account if: (a) Adjustment to be made through cash, i.e. excess/deficit amount may be paid off or brought in by the remaining partners or (b) Adjustment of Capital is to be made by opening Current Accounts.