15 Atoy and Bitoy are partners. Their agreement provides that Atoyshall receive a bonus of 20% of the net profit. The net profit beforebonus during the period is P 20,400.REQUIRED: Compute the bonus of Atoy if the bonus is:Treated as distribution of profit (based on the net profit beforebonus).b. Treated as an expense (based on the net profit after bonus).3.6 The partnership of Mac and Donald, being a commercial partnership.is subject to income tax of 37.5%. Their profit and loss sharingagreement provides that Mac, the managing partner, is entitled to abonus of 40% of the net profit. During the year, the partnershipearned net profit before bonus and tax of P 140,000.REQUIRED: Compute the bonus of Mac assuming that:a. The bonus is based on the net profit before bonus but after tax.b. The bonus is based on the net profit after bonus and tax.3.7 M, N, and O formed a partnership on January 1, 200A withinvestments of P 40,000, P 24,000 and P 20,000, respectively. Thepartners agreed to the following distribution of profits:Annual salaries allowed:M, P 4,800; N, P 6,000; O, P 6,0005% interest on the beginning capital.M, the managing partner is allowed a bonus of 20% of the netprofit after treating as expenses the partners' salaries, interest,and bonus.Profits after the allowances are to be divided 3:3:4, for M, N,and O, respectively.For the year 200A, the net profit before interest, salaries, andbonus amounted to P 29,400. Cash withdrawals made were M,P 10,200; N, P 12,000; and O, P 10,600.REQUIRED: Prepare a Statement of Partners' Equity for the year endedDecember 31, 200A.79

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15 Atoy and Bitoy are partners. Their agreement provides that Atoy shall receive a bonus of 20% of the net profit. The net profit before bonus during the period is P 20,400. REQUIRED: Compute the bonus of Atoy if the bonus is: 4. Treated as distribution of profit (based on the net profit before bonus). b. Treated as an expense (based on the net profit after bonus).

15 Atoy and Bitoy are partners. Their agreement provides that Atoy shall receive a bonus of 20% of the net profit. The net profit before bonus during the period is P 20,400. REQUIRED: Compute the bonus of Atoy if the bonus is: 4. Treated as distribution of profit (based on the net profit before bonus). b. Treated as an expense (based on the net profit after bonus).

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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