Partners A and B receive a salary allowance of $35,000 and $45,000, respectively, and share the remainder equally. If the company earned $50,000 during the period, what is the effect on A’s capital?
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Partners A and B receive a salary allowance of $35,000 and $45,000, respectively, and share the remainder equally. If the company earned $50,000 during the period, what is the effect on A’s capital?
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- Partners R and S receive a salary allowance of P3,000 and P7,000, respectively, and share the remainder equally. If the company earned P4,000 during the period, the entry to close the income or loss into their capital accounts is: a. Income Summary R, Capital S, Capital b. Income Summary S, Capital c. Income Summary R, Capital S, Capital d. Income Summary R, Capital S, Capital Ο Ο Ο Ο O A O D 10,000 4,000 14,000 6,000 3,000 7,000 4,000 7,000 7,000 3,000 3,000Partners De Guzman and Tugade recueve a salary allowance of 30,000 and 70,000, respectively, and share the remainder equally. if the company earned 40,000 during the period, what is the effect on tugades capitalPartners De Guzman and Tugade receive a salary allowance of P30,000 and P70,000, respectively, and share the remainder equally. If the company earned P40,000 during the period, what is the effect on Tugade’s capital? a.P30,000 decrease b.P40,000 increasec. c.P50,000 increased. d.P90,000 increase
- Partners A and C shall receive annual salaries of B12,000 and B8,000, respectively. A bonus of 10% of profit after salaries but before deduction of bonus shall be given to Partner A, the managing partner. Each partner shall receive 10% interest on average capital investments. Any remaining profit or loss shall be shared as follows: 40% to A and 30% each to B and C. The average capital investments of partners during the year are as follows: A B100,000 60,000 120,000 Assiuming that the partnershin earnec a profit amounting to P10 000 1 pointIf the net income is P 200,000, salaries given to partners amount to 60,000, interest to partners’ capital amount to 40,000 and bonus is 20% of net income after salaries, interest, and bonus, how much is the bonus?The net loss of a XYZ partnership for the year is P100,000. Partner X is to be given a salary of 5,000 per month. The capital balances of X, Y and Z are P 150,000, P 160,000, and P 140,000, respectively. Interest in the capital balance will be given at a rate of 15%. Bonus of 10% after salaries and interest is given to partner Z. Remaining profit is to be distributed equally to the partners. In the process of journalizing the distribution of the loss, what will be done to the capital of X and in what amount? A. Credited by P 14,250 B. Debited by P 6,666 C. Credited by P 6,666 D. Debited by P 14,250
- Partner X and Partner Y share profits and losses equally. Partner X and Partner Y receive salary allowances of Php20,000 and Php30,000, respectively, and both partners receive 10% interest on their average capital balances. Total net income for 2021 is Php520,000. If the average capital of Partner X and Partner Y is Php110,000 and Php90,000, what will be the final profit allocations for Partner X in 2021?Partners angela and gabriel receive a salary allowance of 30,000 and 70,000, respectively, and agreed to share the remainder of profit equally. If the company earned 40,000 during the period how will the profit be distributed. Angela's?Gabriel's?For Industry H, determine each partner's share of income assuming the partners agree to share income by giving a $67,700 per year salary allowance to Price, a $126,100 per year salary allowance to Waterhouse, a $113,700 per year salary allowance to Coopers, a 15% interest on their initial capital investments, and the remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Important! Be sure to click the correct Industry at the top of the dashboard. Net income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of each partner Initial partnership investments Net income Allocation of Partnership Income Price Total net income Total 0 Waterhouse $ $ PRICE, WATERHOUSE, AND COOPERS Statement of Partners' Equity For Year Ended December 31 Price Coopers 0 0 Waterhouse 0 0 0 $ For Industry H, prepare a statement of partners' equity for the…
- In addition, the partners are paid annual salaries of P600,000 and P400,000 to Benedict and Lord each respectively. The partners also withdraw P100,00 every quarter. Assuming that the partners’ return on invested capital is 20% per annum, given on average capital for the year and the balance of profits is allocated equally, the allocation of profits should be?1. Say, Alittle and Prayer are partners in a furniture company. following profit and loss distributions; Their partnership agreement provides for the > Say, Alittle and Prayer are to receive salaries of P40,000, P36,000, and P13,650, respectively. Say is to receive a bonus equal to 10% of income before the bonus. Each partner is to receive 10% interest on the weighted average capital balance. Withdrawals are considered to be reduction of capital for purposes of interest calculations. > Any remaining profits of losses are to be divided equally among the partners. Capital balance information for 2006 is as follows: Alittle 6,000 Say 10,000 1,000 2,000 1,000 Prayer 40,000 2,000 15,000 Jan. 1, 2006 Withdrawal 4/1/06 Investment 7/1/06 Withdrawal 10/1/06 4,000 2,000 Prepare distribution of profit or loss table showing the required profit that will allow Say to withdraw P65,000 from said profit. 2. Ashe Company was organized on January 1, 2010, with authorized capital of 100,000 shares of…Partners A, B and C are contemplating using the following profit distribution plan: Salary is to be given to A in the amount of P60,000, with the remainder in an equal rates to all partners. A is guaranteed a minimum profit share of P100,000. a) Profit for the first year is P240,000 b) Profit for the second year is P150,000. Compute for the profit share of partners B and C in both years.