Leynes and Morayta form a partnership with investments of P4,000,000 and P2,000,000, respectively. Journalize their participation...
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Leynes and Morayta form a partnership with investments of P4,000,000 and P2,000,000, respectively. Journalize their participation in net income of P3,000,000, under each of the following assumptions: a. No agreement concerning the division of profits. b. Income divided in accordance with original capital investments. C. Interest at the rate of 12% allowed on original investments. Balance divided equally. d. Annual salary of P500,000 and P1,000,000 respectively, balance divided equally. Leynes and Morayta form a partnership with investments of P4,000,000 and P2,000,000, respectively. Journalize their participation in net income of P3,000,000, under each of the following assumptions: a. No agreement concerning the division of profits. b. Income divided in accordance with original capital investments. C. Interest at the rate of 12% allowed on original investments. Balance divided equally. d. Annual salary of P500,000 and P1,000,000 respectively, balance divided equally.
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To journalize the participation in net income under each assumption we need to create entries in the ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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