Problem 2: Statement of Changes in Equity - PartnershipThe following are taken from the accounting records of JFK Partnership.December 31, 2020December 31, 2021James, CapitalP54,900P64,900Christine, Capital53,20063,900Lolly, Capital44,89050,890The partnership generated net income of P51,600 in 2020. According to the partnershipcontract, James, Christine and Lolly share profit and loss equally. The partnershipcontract allows each partner to withdraw P1,000 monthly. James and Christine eachcontributed P5,000 during the year. Loll did not make any contributions during theyear.Required:1. Prepare the partnership's Statement of Changes in Equity.2. Determine if any of the partners violated the partnership contract provision onDrawings. Identify who among the partners it is.

Partnership: It is an agreement between two or more people to carry on the business and share the…

Answered: The following are taken from the…

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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Barry and Kurt are equal partners in the BK partnership. Barry receives a guaranteed payment of $57,000. In addition to the guaranteed payment, Barry withdraws $11,000 from the partnership. The partnership has $25,600 in ordinary income during the year. a. How much income must Barry report from the BK partnership? b. What is the effect of the distribution on Barry's partnership basis? a. income to Barry b. Barry's partnership basis
Assuming the partnership incurred a loss of P400,000 in 2020. Since they are both active in partnership's affair, each one will receive a P50,000 salaryallowance per year Tasks: determine the new partners' capital after the distribution of profit and loss.
A partnership agreement states that following: the partners shall participate in profits: partner 1 - 70%, partner 2 - 25% and partner 3 - 5%. if the partnership had net income for the year of $135,000, what would be partner's 2 share of the income? a. $33,750. b. $94,500. c. $100,000. d. $6,750.
Rahul
Background: Josche Partnership is a partnership initially formed by Jorissa, Christlyn and Shantalle in 2019 and lasts until 2021 due to financial difficulty and other personal reasons by the partners. Its primary nature is to resell general goods from Universal Robina Corporation, its major supplier. The following are the transactions occurred for the partnership's life: In 2020: · On July 1, 2020, the partnership agreed to admit Elaina as their partner, investing cash that will give her 20% interest in the partnership. Before admitting Elaina, the partnership suffered net loss amounting to P200,000, and write-off uncollectible accounts receivable by P50,000. After admitting Elaina, the revised P/L ratio between Jorissa, Christlyn, Shantalle and Elaina is 3:3:2:2, respectively. · At the second half of 2020, the partnership earned and incurred the following: Sales, P600,000, Cost of sales, P300,000, Operating expenses, P100,000. At 2020 year-end, Shantalle decided to…
What amount must be invested by GREEN?
A and B formed a Partnership on January 1, 2020. A contributed capital of P50,000, while B contributed capital of P30,000. The Partnership agreement provides for the following: o Capital accounts are to be credited annually with interest at 5% of the beginning capital. o Partner B is to be paid salary of P2,000 a month. o Partner B is to receive a bonus of 10% based on the net income. The Partnership's income statement for the year ended is as follows: Revenues P101,000 30,000 71,000 Expenses (including salary, interest, and bonus) Net income Determine the amount of bonus.
The partnership contract of the Ange, Bill, and Cayne Partnership provided for the division of net income or losses in the following manner: Bonus of 20% of income after bonus to Ange Interest at 10% on average capital account balances to each partner. Remaining income or loss, equally to each partner. Net income of the Partnership for 2021 was at P200,000 and the average capital account balances for that year were Ange, P200,000; Bill, P400,000; and Cayne, P600,000. How much of the P200,000 partnership profit for 2021 should be distributed to Ange? Group of answer choices 68,889 80,000 73,333 90,000
The net income of the Mohammad and Ahmed partnership is 250,000. The partnership agreement specifies that profits and losses will be shared equally after salary allowances of 200,000 (Mohammad) and 300,000 (Ahmed) have been allocated. At the beginning of the year, Mohammad's Capital account had a balance of 500,000 and Ahmed's Capital account had a balance of 650,000. What is the balance of Mohammad's Capital account at the ?end of the year after profits and losses have been distributed 825,000.a O 375,000.b O 625,000 .cO 575,000.d O
The statement of financial position May Partnership on December 31, 2020 is given below: Cash P45,000 Accounts payable P70,000 Receivable 25,000 Loan payable to Mateo 30,000 Inventories 180,000 Mateo, capital 75,000 Plant and equipment 120,000 Vicente, capital 75,000 Ibe, capital 120,000 Total P370,000 Total P370,000 A new partner, Francisco, was admitted on January 1, 2021, who purchased Mareo’s capital by giving his car costing P250,000 but with a book value of P125,000 and a market value of P100,000, How much was Francisco, capital credited? Answer without peso signs but with commas.
Hamisi and Peter are partners, sharing profits and losses in the ratio 3:2. The following is the trial balance in the partnership books at 31st December 2020. Dr Cr Shs Shs Capital Account at 1st January 2020 - Hamisi 16,400 - Peter 13,200 - Hamisi 3,600 - Peter 2,400 Provision for doubtful debts 480 Purchases…
The partners of the MKR Partnership agree to liquidate their partnership on December 31, 2020. At that point, the accounting records show the following balances: Account Debit Credit Cash $29,000 Notes Payable $15,000 Accounts Receivable 21,000 Accounts Payable 30,000 Allowance for Doubtful Accounts 2,000 Wages Payable 4,000 Merchandise Inventory 36,000 M. Samuels, Capital 25,000 Equipment 18,000 K. Roswell,…

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