The partnership had an income of P675,000 during 2013 but was less successful during 2014, when income was only P580,000. f. The partners agreed to share income by paying salaries of $80,000 to Thomas and P56,000 to Lopez, allowing interest of 10.5 percent on their original investments, and dividing the remainder by 60 percent for Thomas and 40% for Lopez. DISTRIBU ON OF INCOME BASED ON ACREED AMOUNT BY DER
The partnership had an income of P675,000 during 2013 but was less successful during 2014, when income was only P580,000. f. The partners agreed to share income by paying salaries of $80,000 to Thomas and P56,000 to Lopez, allowing interest of 10.5 percent on their original investments, and dividing the remainder by 60 percent for Thomas and 40% for Lopez. DISTRIBU ON OF INCOME BASED ON ACREED AMOUNT BY DER
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:In January 2013, Edi Thomas and George Lopez agreed to produce and sell chocolate candies
under the company name T&L Chocolates. Thomas contributed P580,000 in cash to the business.
Lopez contributed the building and equipment, valued at P480,000 and P230,000, respectively.
The partnership had an income of P675,000 during 2013 but was less successful during 2014,
when income was only P580,000.
f. The partners agreed to share income by paying salaries of $80,000
to Thomas and P56,000 to Lopez, allowing interest of 10.5 percent on
their original investments, and dividing the remainder by 60 percent for
Thomas and 40% for Lopez.
DISTRIBUTION OF INCOME BASED ON AGREED AMOUNT OF SALARY PER
PARTNER, INTEREST ON INITIAL INVESTMENT AND THE REMAINDER ON
SPECIFIC PERCENTAGES.
2013
Income of Partner
Income Distributed
675,000.00
Total Income For Distribution
Distribution of Salaries:
George Lopez
(61)
Edi Thomas
(62)
(63)
Remaining Income After Salaries
(64)
Distribution of Interest:
George Lopez
(65)
Edi Thomas
(66)
(67)
Remaining Income After Salaries and Interest
Distribution of Remaining Amount:
George Lopez
(68)
Edi Thomas
(69)
(70)
Remaining income
(71)
Income of Partners
(72)
(73)
P
675,000.00
2014
Income of Partner
Income Distributed
Total Income For Distribution
P
580,000.00
Distribution of Salaries:
George Lopez
(74)
Edi Thomas
(75)
(76)
Remaining Income After Salaries
(77)
Distribution of Interest:
George Lopez
(78)
Edi Thomas
(79)
(80)
Remaining Income After Salaries and Interest
Distribution of Remaining Amount:
George Lopez
(81)
Edi Thomas
(82)
(83)
(84)
Remaining income
Income of Partners
(85)
(86)
580,000.00
P
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education