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Accounting
Year 2019 Ann Dox

Year 2019 Ann Dox

FINANCIAL ACCOUNTING
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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Practice Exercise 6-3: (Profit or Loss Distribution - No agreement, Equally, Arbitrary Ratio) Ann and Dox contributed P150,000 and P300,000 cash, respectively, to put up the capital for a cell phone loading business. The business had normal first year problems, but during the second year the operation was very successful. The company reported the following key operating performance figures for 2019 and 2020 of operations: Year 2019 Operating revenues Operating expenses Year 2020 P320,000 380,000 P980,000 820,000 Instruction: Determine how the partners would share the income or loss for each year under each of the following assumptions: a. Ann and Dox failed to include stated ratios in the partnership agreement. Year 2019 Ann Dox Property of and for the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or transmitting in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited. 22 Year 2020 Ann Dox b. The partners agreed to share income or losses equally. Year 2019 Ann Dox Year 2020 Ann Dox c. The partners agreed to share in the ratio of 3:5 for Ann and Dox, respectively Year 2019 Ann Dox Property of and for the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or transmitting in any fom or by any means, electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited. 23 23 / 32 Year 2020 Ann d. The partners agreed to share in the ratio of 1/3 and 1/6 for Ann and Dox, respectively. Year 2019 Ann Dox Year 2020 Ann Dox e. The partners agreed to share income and losses through 40% and 50% to Ann and Dox, respectively. Year 2019 Ann Dox Year 2020 Ann Dox 24 / 32 ... •.. •..
Transcribed Image Text:Practice Exercise 6-3: (Profit or Loss Distribution - No agreement, Equally, Arbitrary Ratio) Ann and Dox contributed P150,000 and P300,000 cash, respectively, to put up the capital for a cell phone loading business. The business had normal first year problems, but during the second year the operation was very successful. The company reported the following key operating performance figures for 2019 and 2020 of operations: Year 2019 Operating revenues Operating expenses Year 2020 P320,000 380,000 P980,000 820,000 Instruction: Determine how the partners would share the income or loss for each year under each of the following assumptions: a. Ann and Dox failed to include stated ratios in the partnership agreement. Year 2019 Ann Dox Property of and for the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or transmitting in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited. 22 Year 2020 Ann Dox b. The partners agreed to share income or losses equally. Year 2019 Ann Dox Year 2020 Ann Dox c. The partners agreed to share in the ratio of 3:5 for Ann and Dox, respectively Year 2019 Ann Dox Property of and for the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or transmitting in any fom or by any means, electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited. 23 23 / 32 Year 2020 Ann d. The partners agreed to share in the ratio of 1/3 and 1/6 for Ann and Dox, respectively. Year 2019 Ann Dox Year 2020 Ann Dox e. The partners agreed to share income and losses through 40% and 50% to Ann and Dox, respectively. Year 2019 Ann Dox Year 2020 Ann Dox 24 / 32 ... •.. •..
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