Problem 2: On January 1, 2020. The capital balances of Partners Ryu and Jin have capital...

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Problem 2: On January 1, 2020. The capital balances of Partners Ryu and Jin have capital balances of P400,000 and P600,000, respectively. The following investments and withdrawals occurred during 2020: Ryu ● Beginning balance 2/28 5/1 6/30 9/30 Ending balance 400,000 50,000 ● 120,000 (20,000) 550,000 Jin 600,000 The following were the profit or loss sharing agreement of the partnership: A monthly salary will be given to the capitalist-industrial partner, Ryu, amounting to P10,000. 12% interests are allowed to the partners based on their weighted average capital balance. Remainder is to be shared equally. 80,000 (30,000) 650,000 Required: 1. Determine the share of the partners in the results of partnership operations assuming: a. b. C. Net income of the partnership for the year is P200,000 Net income of the partnership for the year is P20,000 Net loss of the partnership for the year P120,000 2. Provide the journal entries to transfer the income summary account to the drawings account of the partners assuming the three independent cases in requirement#1. 3. Determine the ending capital balances of the partners after closing the ,drawings account to their respective capital accounts. Problem 2: On January 1, 2020. The capital balances of Partners Ryu and Jin have capital balances of P400,000 and P600,000, respectively. The following investments and withdrawals occurred during 2020: Ryu ● Beginning balance 2/28 5/1 6/30 9/30 Ending balance 400,000 50,000 ● 120,000 (20,000) 550,000 Jin 600,000 The following were the profit or loss sharing agreement of the partnership: A monthly salary will be given to the capitalist-industrial partner, Ryu, amounting to P10,000. 12% interests are allowed to the partners based on their weighted average capital balance. Remainder is to be shared equally. 80,000 (30,000) 650,000 Required: 1. Determine the share of the partners in the results of partnership operations assuming: a. b. C. Net income of the partnership for the year is P200,000 Net income of the partnership for the year is P20,000 Net loss of the partnership for the year P120,000 2. Provide the journal entries to transfer the income summary account to the drawings account of the partners assuming the three independent cases in requirement#1. 3. Determine the ending capital balances of the partners after closing the ,drawings account to their respective capital accounts.

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Here are the solutions to the three parts of the problem 1 Share of partners in results of operation... View the full answer