Arguelles, Cabulay and Palma was formed on Jan. 2, 2006. The original cash investments were as...

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Arguelles, Cabulay and Palma was formed on Jan. 2, 2006. The original cash investments were as follows: Arguelles Cabulay Palma P 960,000 1,440,000 2,160,000 According to the partnership contract, the partners were to be remunerated as follows: a. Salaries of P144,000 for Arguelles, P120,000 for Cabulay, and P136,000 for Palma. b. Interest at 12% on the average capital account balances during the year. c. Remainder divided 40% to Arguelles, 30% to Cabulay, and 30% to Palma. Profit for the year ended Dec. 31, 2006, was P920,800. Arguelles invested an additional P240,000 in the partnership on July 1. Palma withdrew P360,000 from the partnership on Oct. 1. Required: 1. Prepare the profit distribution schedule. 2. Prepare the statement of changes in partners' equity. Arguelles, Cabulay and Palma was formed on Jan. 2, 2006. The original cash investments were as follows: Arguelles Cabulay Palma P 960,000 1,440,000 2,160,000 According to the partnership contract, the partners were to be remunerated as follows: a. Salaries of P144,000 for Arguelles, P120,000 for Cabulay, and P136,000 for Palma. b. Interest at 12% on the average capital account balances during the year. c. Remainder divided 40% to Arguelles, 30% to Cabulay, and 30% to Palma. Profit for the year ended Dec. 31, 2006, was P920,800. Arguelles invested an additional P240,000 in the partnership on July 1. Palma withdrew P360,000 from the partnership on Oct. 1. Required: 1. Prepare the profit distribution schedule. 2. Prepare the statement of changes in partners' equity.

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Profit Distribution Schedule a Salaries Arguelles P144000 Cabulay P120000 Palm... View the full answer