Short Answer Jaiz, Najeb,and Philip agreed to share profits and losses according to the ratio of their respective investments at the beginning of the year of P300,000,P250,000, and P450,000. Calculate the share of each partner under the following conditions: (a) 300,000 profit; (b) 250,000 loss; (c) prepare journal entry for each condition.

Short Answer Jaiz, Najeb,and Philip agreed to share profits and losses according to the ratio of their respective investments at the beginning of the year of P300,000,P250,000, and P450,000. Calculate the share of each partner under the following conditions: (a) 300,000 profit; (b) 250,000 loss; (c) prepare journal entry for each condition.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

You were given the following capital balances of the partners of Pinnacle Trading: Stephanie Php 10,000 Angel Php 20,000 Nichole Php 30,000 The partners agreed to divide profit or loss in the ratio of their capital balances. If the partnership earned a profit of Php 30,000 for the year, compute the share of Stephanie, Angel, and Nichole to the profit of the business.
ii.9
Exercise 3-7. Distribution of Net Loss to partners Carmela and Ferdinand formed a partnership on January respectively. The partnership reported a net loss of P80,000. 1, 2023, with initial investments of P300,000 and P500,000, The partnership agreement provides that profit or loss shall be distributed accordingly: • Monthly salary of P10,000 and P5,000 respectively for Carmela and Ferdinand, . 10% interest on partners' original capital. . 20% bonus to Carmela based on net income before interest, and salary. •The remainder is shared in the ratio of 3:2 respectively. Required: Determine the share of Carmela and Ferdinand in the net loss.
Meman
Show the computation
For Industry H, determine each partner's share of income assuming the partners agree to share income by giving a $67,700 per year salary allowance to Price, a $126,100 per year salary allowance to Waterhouse, a $113,700 per year salary allowance to Coopers, a 15% interest on their initial capital investments, and the remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Important! Be sure to click the correct Industry at the top of the dashboard. Net income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of each partner Initial partnership investments Net income Allocation of Partnership Income Price Total net income Total 0 Waterhouse $ $ PRICE, WATERHOUSE, AND COOPERS Statement of Partners' Equity For Year Ended December 31 Price Coopers 0 0 Waterhouse 0 0 0 $ For Industry H, prepare a statement of partners' equity for the…
please help me
2. The partnership of David White and Paul Wacker incurred net income of $40,000 for the current year. David had invested $30,000 and Paul had invested $45,000. Calculate he distribution share to each partner if profits are divided in the ratio of:a. Investmentsb. 3:1
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…
The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A $10,000 C. ($12,000)