The partnership agreement of Du-sikand Hye-Jin provides for salaryallowances of P45,000 to Du-sik andP35,000 to Hye-Jin, with theremaining income or loss to bedivided equally. During the year, Du-sik and Hye-Jin each withdraw cashequal to 80% of their salaryallowances. If partnership net incomeis P100,000, Du-sik's equity in thepartnership would *increase more than Hye-Jin's.O decrease more than Hye-Jin's.increase the same as Hye-Jin's.O decrease the same as Hye-Jin's.

Partner's Equity Capital: In the accounting records of a partnership, the partnership capital…

Answered: The partnership agreement of Du-sik and…

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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At December 31, A and B are partners with capital balances of P40, 000 and P20, 000, and they share profits and losses in the ratio of 2:1, respectively. On this date, C invests P17,000 in cash for a one-fifth interest in the capital and profit of the new partnership. Assuming that the bonus method is used, how much should be credited to C's capital account on December
The partnership agreement of Gibbs and Reed has the following provisions: Salary allowances are $20,000 for Gibbs and $30,000 for Reed. No interest is given on the partners’ capital balances. Any income/loss greater than the salary allowances is divided using a 2:3 ratio. Revenues of $130,000 and expenses of $62,000 resulted in net income for the first year of operations of $68,000. Calculate the net income distributed to each partner.
Determine the net income to be allocated to each partner. Danger and Tol formed a partnership with capital contributions of $150,000 and $180,000, respectively. Their partnership agreement called for Danger to receive a $60,000 annual salary allowance. They also agreed to allow each partner an interest allowance equal to 10% of their initial capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $120,000, what are Danger's and Tol's respective shares? Danger Allocated Net Income Tol
Phox and Ranch have decided to form a partnership. They are in the process of agreeing on how the profits/losses will be divided. Assume that the company is anticipating net income of $80,000 for the first time period. Determine Phox's share of the $80,000 if the partners agree on an interest allowance of 10% on the original investments (Phox invested $20,000 and Ranch invested $30,000), salary allowances of $22,000 to Phox and $33,000 to Ranch, and the remainder equally. Phox Ranch Total Interest Allowances Salary Allowances 22,000 33,000 55,000 Remainder 1:1 _____ ______ ______ Totals ? 80,000 Group of answer choices $20,000 $33,000 $34,000 $46,000
Nancy and Peter enter into a partnership and decide to share profits and losses as follows: 1 The first allocation is a salary allowance with Nancy receiving $16,000 and Peter receiving $14,000. 2. The second allocation is 20% of the partners' capital balances at year end. On December 31, 2019, the capital balances for Nancy and Peter are $88,000 and $25,000, respectively 3. Any remaining profit or loss is allocated equally. For the year ending December 31, 2019, the partnership reported a net loss of $95,000. What is Peter's share of the net loss? OA. $40,200 OB. $7,300 OC. $21,200 OD. $19,000
Ben and Carrie enter into a partnership agreement whereby they undertake to share profits according to the following rules: (a) Ben and Carrie will receive a salary of $1,500 and $13,500 respectively (b) The next allocation is based on 20% of the parner's capital balances ('c) Any remaining profit or loss is to be borne completely by Carrie The partnership's Net Income for the first year is $40,000. Ben's capital balance is $90,000 and Carrie's capital balance is $10,000 as at the end of the year. Calculate the share of profit/loss to be borne by Carrie. (it's asking for the total share of the Net Income Carrie will obtain) A $ 4,000.00 B $ 17,500.00 C $ 19,500.00 D $ 20,500.00
Nancy and Betty enter into a partnership agreement whereby they undertake to share profits according to the following rules: (a) Nancy and Betty will receive a salary of $1,400 and $11,500 respectively. (b) The next allocation is based on 10% of the partner's capital balances. (c) Any remaining profit or loss is to be borne completely by Betty. The partnership's profit for the first year is $40,000. Nancy's capital balance is $88,000 and Betty's capital balance is $12,000 as at the end of the year. Calculate the share of profit/loss to be borne by Betty. Select one: a. $29,800 O b. $9,000 O c. $1,000 O d. $10,200
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
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4. A and B's partnership agreement provides for an annual salary allowance of P100,0 for A and 10% interest on the weighted average capital balance of B. The remainder is shared equally. During the period, the partnership earned profit of P200,000. B's capital account had a beginning balance of P120,000. B made additional investments of P60,000 on March 1, P40,000 on Sept. 30, and made drawings of P30,000 on Aug. 1 and P9,000 on Nov. 1. Requirement: Compute for the respective shares of the partners in the profit.
Jeon, Kim, and Min are partners with present capital balances of P500,000, P600,000, and P200,000, respectively. The partners share profit and losses according to the following percentages: 60% for Jeon, 20% for Kim, and 20% for Min. Park is to join the partnership upon contributing P600,000 to the partnership in exchange for a 25% interest in capital and a 20% interest in profits and losses. The existing assets of the original partnership are undervalued by P220,000. The original partners will share the balance of profits and losses in proportion to their original percentages. Using the total/full goodwill method, answer the following (answers can be repeated): a. The revaluation of assets will increase/decrease the assets by: b. The total contributed capital is c. The total agreed capital is d. Asset (Goodwill) will be debited/credited by e. After the admission of Park, the total capital of Jeon is f. After the admission of Park, the total capital of Kim is g. After the…
The net income of the Chris and Browning partnership is $440000. The partnership agreement specifies that Chris and Brow a salary allowance of $125000 and $171000, respectively. The partnership agreement also specifies an interest allowrance of capital balances at the beginning of the year. Each partner had a beginning capital balance of $ 294000. Any remaining net inc net loss is shared equally. What is Chris's share of the $ 440000 net income? $197000 $154400 $167600 $114600 Attempts: 0 of 1 used

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