Use the following independent methods of computing the distribution on profit above: (5pts each) a. Interest...
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Use the following independent methods of computing the distribution on profit above: (5pts each) a. Interest of 6% on the partners' ending capital, the remainder equally. b. Salaries of P15,000 a month for each partner, interest of 10% on weighted average capital and the remainder 6 and 4 for Paul and Peter, respectively. c. Bonus of 10% to Paul after salaries of P10,000 a month for each partner and interest of 6% on ending capital but before bonus, and the balance equally. D & N Partnership decided to accept A as partner with P500,000 cash contribution. The capital balances of D and N are P600,000 and P400,000, respectively. It was agreed among the partners that the following partnership assets should be revalue before the admission of A: Cost Machine Invertay Lard Building 200,000 100000 200,000 300,000 Accumulated Fair Value Allowances 80,000 150.000 10,000 80,000 300,000 150,000 200,000 It was agreed that the new partnership name would be DNA and the profit and loss distribution would be based on the partner's respective adjusted capital balances. (5pts each) Required: a. Journalize the asset revaluation. b. Journalize the admission of A. c. Prepare a schedule of new partners' capital balances. Use the following independent methods of computing the distribution on profit above: (5pts each) a. Interest of 6% on the partners' ending capital, the remainder equally. b. Salaries of P15,000 a month for each partner, interest of 10% on weighted average capital and the remainder 6 and 4 for Paul and Peter, respectively. c. Bonus of 10% to Paul after salaries of P10,000 a month for each partner and interest of 6% on ending capital but before bonus, and the balance equally. D & N Partnership decided to accept A as partner with P500,000 cash contribution. The capital balances of D and N are P600,000 and P400,000, respectively. It was agreed among the partners that the following partnership assets should be revalue before the admission of A: Cost Machine Invertay Lard Building 200,000 100000 200,000 300,000 Accumulated Fair Value Allowances 80,000 150.000 10,000 80,000 300,000 150,000 200,000 It was agreed that the new partnership name would be DNA and the profit and loss distribution would be based on the partner's respective adjusted capital balances. (5pts each) Required: a. Journalize the asset revaluation. b. Journalize the admission of A. c. Prepare a schedule of new partners' capital balances.
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a Journalize the asset revaluation Machine Debit Accumulated Allowances Machi... 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
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