EXERCISE 6-7. Journal Entries 4. Partners Doris, Jacob, and Jeff contributed P70,000, P90,000, and industry, respectively, to the partnership and agreed to distribute profits and lossesunder the following situations:1. Equally2. Doris - 30%; Jacob - 50%; and Jeff - 20%Prepare the journal entries to record the distribution of P80,000 loss to Doris, Jacob, and Jeff in each of the above situation, assuming:Case A: Permanent capital balances are maintained.Case B: Permanent capital balances are not maintained. EXERCISE 6-5. Journal Entries 2. Partners Bryan, Danilo, and Nelida contributed P60,000, P100,000, and industry, respectively, to the partnership and agreed to distribute profitsunder the following situations:1. Equally2. Bryan - 25%; Danilo - 40%; and Nelida - 35%Prepare the journal entries to record the distribution of P90,000 profit to Bryan, Danilo, and Nelida in each of the above situation, assuming:Case A: Permanent capital balances are maintained.Case B: Permanent capital balances are not maintained.

When a partner has fixed capital, the quantity of capital the partner has stayed constant during the…

Answered: EXERCISE 6-5. Journal Entries 2.…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 3SEB

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Exercise 3-8. Distribution of Net Income to partners On March 1, 2023 Glenda and Harry formed GH Partnership with initial investment of P800,000 and P1,200,000, respectively. Glenda is appointed as the managing partner. The articles of co-partnership provides that profit or loss shall be distributed accordingly: 10% interest on original capital contribution ratio. Monthly salary of P10,000 and P5,000 respectively for Glenda and Harry. . Glenda shall be entitled to bonus equivalent to 10% of net income after interest, and salary. The remainder shall be distributed in ratio of 4:6 for Glenda and Harry, respectively. ● For the year ended December 31, 2023, the partnership reported net income of P1,000,000. Required: Compute for the share in net income of Glenda for the year ended December 31, 2023.
EXERCISE 6-7. Journal Entries 4. Partners Doris, Jacob, and Jeff contributed P70,000, P90,000, and industry, respectively, to the partnership and agreed to distribute profits and losses under the following situations: 1. Equally 2. Doris - 30%; Jacob - 50%; and Jeff - 20% Prepare the journal entries to record the distribution of P80,000 loss to Doris, Jacob, and Jeff in each of the above situation, assuming: Case A: Permanent capital balances are maintained. Case B: Permanent capital balances are not maintained.
Scenario B: Partners A, B, and C operate a business with profit sharing agreement ratios of 5: 3:2, and capital balances of $300,000, $200,000, and $100,000 respectively. The total income for the year is $180,000. Each partner receives a fixed salary of $50, 000, and they are entitled to earn 10% interest on their capital balances. Calculate the total income allocated to Partner
1. 2. EXERCISE 4. Journal Entries - Cash, non-cash, and industry contributions. Prepare and upload the journal entries to record contributions of Kim and Krislam into the partnership under the following independent assumptions: 3. Page 4. 9 Cash contribution amounting to P45,000 each. Kim contributed P35,000 cash and a store equipment with carrying value of $27,000. Krislam contributed P15,000 cash and a delivery vehicle with a fair market value of P195,000. Kim and Krislam agreed that each depreciable asset is overvalued by $4,000. Kim contributed P10,000 cash and furniture and fixtures with carrying value of P32,000. Krislam contributed P5,000 cash and a building with a fair market value of P295,000 and an unpaid mortgage of P27,500. Kim and Krislam agreed that building is undervalued by P9,000. Kim contributed P25,000 cash, a store equipment with fair market value of P47,000, and delivery vehicle with a fair market value of P175,000. Krislam, an industrial partner, was to contribute…
EXERCISE 4. Journal Entries - Cash, non-cash, and industry contributions. Prepare and upload the journal entries to record contributions of Kim and Krislam into the partnership under the following independent assumptions: 1. Cash contribution amounting to $45,000 each. 2. Kim contributed $35,000 cash and a store equipment with carrying value of $27,000. Krislam contributed $15,000 cash and a delivery vehicle with a fair market value of $195,000. Kim and Krislam agreed that each depreciable asset is overvalued by $4,000. 3. Kim contributed $10,000 cash and furniture and fixtures with carrying value of $32,000. Krislam contributed $5,000 cash and a building with a fair market value of $295,000 and an unpaid mortgage of $27,500. Kim and Krislam agreed that building is undervalued by $9,000. 4. Kim contributed $25,000 cash, a store equipment with fair market value of $47,000, and delivery vehicle with a fair market value of $175,000. Krislam, an industrial partner, was to contribute her…
EXERCISE 6-13. Problem Solving 4. Alloy and Aeson are partners who share profits and losses in the ratio 60% and 40%, respectively. Alloy and Aeson are given salary allowances of P120,000 and P60,000, respectively. The partners are also paid interest on their ending capital balances. In 2019, amounts of interest received by Alloy and Aeson were P60,000 and P24,000, respectively. Subsequent allocations using profit and loss ratio were then made after salary allowances and interest payments had been provided for. You are required to determine the total partnership net income if Aeson's share in the residual income (balance after salary allowances and interest) was P120,000 in 2019.
On January 1. 20x7 Jorgia, Lizza. Miles, Nice formed a partnership. At the time of formation, the partners agreed to the following amount of investment, division of profits and losses, and drawings: Jorgia Lizza Miles Nice Initial Investment P36,000 P56,000 P60,000 P40.000 Profit and Loss Ratio 15% 30% 35% 20% Annual Withdrawals 20x7 P14,400 P14.400 P14,400 P14,400 20x8 19.200 19.200 19.200 19 200 20x9 14,600 14,600 30.000 30.000 The net income for 20x7, 20x8 and 20x9 armounts to P130,000, P156,000, P172.000 respectively. AL the end of 20x9. Miles was consented to withdraw from the partrership. 1. Compute for the capilal of Rice if Miles sold her interest to Rice with the consent of other partners at 10% more than her capilal balance. 2. Compute for the bonus to Nice if Miles sold her interest to the partnership at 10% less than her capital interest.
Problem #5 SCORE: PROFESSOR: Distribution of Profits or Losses Based on Partners' Agreement Abad, Aglugub, and Onate 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) P270,000 profit; (b) P240,000 loss.
Question 1: Calculate the contribution, profit and loss sharing (Chapter 12) John Contribution-- $120,000 William Contribution-- $180,000 John received salary from the partnership $80,000 William received salary from the partnership $90,000 Capital allocation to each partner 12% Reminding profit and loss sharing equally. 50% to john 50% to William Equity Statement Net Income John William Total $650,000
n the year ended 31/12/2018 total income of Palestine co,20,000 if A partner received 5,000 annual salary and reaming divided equally between the two partners A and B so Finally the reamig profit should be allocated to partners will be 15,000 Select one: True False
Item Nos. 17 and 18 are based on the following information: ebnismen orfT On December 31, 200C, the partnership of Hue and Teng realized a profit of P 225,000. The capital accounts of the partners showed the following debits and credits during 200C: 002 bes'200 Hue Teng March 1 credit P 20,000 P 50,000 July 1 debit 5411 25,000 August 1 credit 30,000 October 1 debit- 10,000 November 1 credit- 65,000 17. Assuming that the profit will be divided using the average capital, the share of Hue is: a. P 80,000. c. P 120,000. d. P 135,000. а. С. b. P 90,000. 000,008 nsw 18. If the profit will be divided equally after providing 12% interest on the opening capital, the share of Teng in the profit is: a. P 114,000. P 120,000. С. b. P 118,000. d. P 135,000. 00 000.009
Exercise 3-1 (Division of Profit using Ratios) Bong, Bueno, and Bunny formed a partnership and have capital balances of P350,000, P250,000 and P200,000, respectively. They devoted time to personally managed their partnership as follows: Bong Bueno Bunny three-fourths time one-half time one-fourth time Instructions: Determine the participation of the partners in the profit of P1,000,000 if profit is divided: 1. In the ratio of capital investments 2. In the ratio of time devoted in the business Follow the instructions strictly

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