In January 2013, Edi Thomas and George Lopez agreed to produce and sell chocolate candiesunder 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. e. The partners agreed to share income by allowing salaries of $83,000for Thomas and $60,000 for Lopez, and dividing the remainder by 60percent for Thomas and 40% for Lopez.DISTRIBUTION OF INCOME BASED ON AGREED AMOUNT OF SALARY PERPARTNER WITH THE REMAINDER SHARED ON SEPCIFIC PERCENTAGES.2013Income DistributedIncome of PartnerTotal Income for DistributionP675,000.00Distribution of Salaries:George Lopez(41)Edi Thomas(42)(43)(44)Remaining Income After SalariesDistribution of remaining income:George Lopez(45)Edi Thomas(46)(47)Remaining income(48)Income of Partners(49)(50)P675,000.002014Income of PartnerIncome Distributed580,000.00Total Income for DistributionPDistribution of Salaries:George Lopez(51)Edi Thomas(52)(53)(54)Remaining Income After SalariesDistribution of remaining income:George Lopez(55)Edi Thomas(56)(57)Remaining income(58)Income of Partners(59)(60)580,000.00P

The income distribution is as follows:

Answered: e. The partners agreed to share income…

e. The partners agreed to share income by allowing salaries of $83,000 for Thomas and $60,000 for Lopez, and dividing the remainder by 60 percent for Thomas and 40% for Lopez.

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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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. 1. Prepare the journal entry to record the investment of both partners in the partnership. JOURNAL ENTRIES CREDIT DEBIT (2) (1) (3) (4) Initial investment of Edi Thomas in T&L Chocolates. (5) (6) (7) (8) (9) (10) (11) (12) Initial investment of George Lopez in T&L Chocolates.
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. d. The partners agreed to share income by allowing interest of 12 percent on their original investments and dividing the remainder equally. DISTRIBUTION OF INCOME BASED ON INTEREST ON INVESTMENTS AND REMAINDER SHARED EQUALLY Income of Partner 2013 Income Distributed 675,000.00 Total Income for Distribution Distribution of Interest: George Lopez (21) Edi Thomas (22) (23) Remaining Income After Interest (24) ********* Equal distribution of remaining income: George Lopez (25) Edi Thomas (26) (27) Remaining income (28) Income of Partners (29) 675,000.00 (30) Income of Partner 2014 P Income…
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…
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. a. The partners agreed to share income equally. * DISTRIBUTION OF INCOME SHARED EQUALLY 2013 2014 For Edi Thomas: 2013: (13) 2014: (14) For George Lopez: 2013: (15) 2014: (16) Totals P 675,000.00 P 580,000.00 b. The partners failed to agree on an income-sharing arrangement.* Your answer c. The partners agreed to share income according to the ratio of their original investments. DISTRIBUTION OF INCOME BASED ON RATIO OF INITIAL INVESTMENTS 2013 2014 For Edi Thomas: 2013: (17) 2014: (18) For George Lopez: 2013: (19) 2014: (20) Totals ℗ 675,000.00 ▸ 580,000.00
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. JOURNAL ENTRIES CREDIT DEBIT (2) (1) (3) (4) Initial investment of Edi Thomas in T&L Chocolates. (5) (6) (7) (8) (9) (10) (11) (12) Initial investment of George Lopez in T&L Chocolates. 2. Determine the share of income for each partner in 2013 and 2014 under each of the following conditions: c. The partners agreed to share income according to the ratio of their original investments. DISTRIBUTION OF INCOME BASED ON RATIO OF INITIAL INVESTMENTS 2013 2014 a. The partners agreed to share income equally. * For Edi Thomas: 2013: (17) 2014: (18) DISTRIBUTION OF INCOME SHARED EQUALLY 2013 2014 For George…
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. a. The partners agreed to share income equally. * DISTRIBUTION OF INCOME SHARED EQUALLY 2013 2014 For Edi Thomas: 2013: (13) 2014: (14) For George Lopez: 2013: (15) 2014: (16) Totals P 675,000.00 P 580,000.00
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