Problem 32: Pam and Drix formed a partnership in 20x1 to operate a bookkeeping services. Pam...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Problem 32: Pam and Drix formed a partnership in 20x1 to operate a bookkeeping services. Pam contributed the initial capital while Drix managed the business. With the assistance of their consultants, they have arrived at the following agreement: 1. Each partner is allowed to withdraw P1,000 in cash from business every month. Any withdrawal in excess of that figure will be accounted for as a direct reduction to the partners' capital balance. 2. Partnership profits and losses will be allocated each year according to the following plan: Interest of 15% will be accrued by each partner based on the monthly average capital balance for the year. As the managing partner, Drix is to receive credit for a bonus equal to 20% of the year's net income. Any remaining profit or loss will be divided equally between the two partners. Pam and Drix begin the year of 20x1 with capital balances of P150,000 and P30,000, respectively. On April 1 of the year, Pam invested additional P8,000 cash in the business, while on July 1, Drix withdraws P6,000 in excess of the specified drawing allowance. The partners withdraw the amount of cash allowed every month. The partnership reports net income of P30,000 for 20x1. The amount of capital balances of Pam and Drix on December 31, 20x1 will be: a. P167,675; P20,325 c. P158,000; P14,000 d. P159,675; P22,325 b. P155,675; P26,325 Problem 32: Pam and Drix formed a partnership in 20x1 to operate a bookkeeping services. Pam contributed the initial capital while Drix managed the business. With the assistance of their consultants, they have arrived at the following agreement: 1. Each partner is allowed to withdraw P1,000 in cash from business every month. Any withdrawal in excess of that figure will be accounted for as a direct reduction to the partners' capital balance. 2. Partnership profits and losses will be allocated each year according to the following plan: Interest of 15% will be accrued by each partner based on the monthly average capital balance for the year. As the managing partner, Drix is to receive credit for a bonus equal to 20% of the year's net income. Any remaining profit or loss will be divided equally between the two partners. Pam and Drix begin the year of 20x1 with capital balances of P150,000 and P30,000, respectively. On April 1 of the year, Pam invested additional P8,000 cash in the business, while on July 1, Drix withdraws P6,000 in excess of the specified drawing allowance. The partners withdraw the amount of cash allowed every month. The partnership reports net income of P30,000 for 20x1. The amount of capital balances of Pam and Drix on December 31, 20x1 will be: a. P167,675; P20,325 c. P158,000; P14,000 d. P159,675; P22,325 b. P155,675; P26,325
Expert Answer:
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
Students also viewed these accounting questions
-
Pam and Pete formed a partnership in order to start a computer software consulting business. Pam was well aware that Pete could not be trusted with the partnership's money (he was likely to spend...
-
Pam and Pete formed a partnership in order to start a computer software consulting business. Pam was well aware that Pete could not be trusted with the partnership's money (he was likely to spend...
-
Adam, Stanley, and Rosalind formed a partnership in State X to distribute beer and wine. Their agreement provided that the partnership would continue until December 31, 2014. Which of the following...
-
Imagine that a researcher develops a new cancer drug that shrinks tumors, which she measures using an MRI. The researcher needs to determine if the new drug performs differently from, or the same as,...
-
Are the following mergers horizontal, vertical, or conglomerate? a. Newsweek magazine and Time magazine b. Tyson Chicken and Popeyes Chicken restaurants c. CBS TV and Jerry Bruckheimer Productions...
-
Compound A has molecular formula C 5 H 10 . Hydroboration- oxidation of compound A produces 2-methylbutan-1-ol. Draw the structure of compound A: Compound A (C,H10) 1) BH, THF 2) H202, NaOH
-
Find the area to the right of 46.979 under the chi-square distribution with 30 degrees of freedom.
-
2. Your initial hypotheses to describe projectile motion are given to you in Eq. 5 and Eq. 6. Write down the mathematical models that you would use to represent Eq. 5 and Eq. 6 (reference p. 2 of the...
-
Question 5 Trust&Co. has the opportunity to undertake one of two projects, both requiring a $100M investment. Suppose that all investors are risk neutral, and that initially the risk free rate is...
-
Transform the E-R diagram of Figure 8-23 into a set of 3NF relations. Make up a primary key where needed and one or more nonkey attributes for each entity. Figure 8-23 TOOL ++ Used_on PROJECT Project...
-
The law demands that students with special needs, gifted and learning disabled, be taught in regular classrooms whenever possible.
-
A machine with a mass of \(30 \mathrm{~kg}\) is operating at a frequency of \(60 \mathrm{rad} / \mathrm{s}\). What equivalent stiffness of the machine's mounting leads to resonance?
-
Find all positive values of \(r\) that satisfy the following. (a) \(T(r, 0.1) <1\) (b) \(T(r, 0.8)>1\) (c) \(T(r, 0.4)>T(r, 0.3)\)
-
Find all real positive values of \(r\) that satisfy the following. (a) \(M(r, 0)=1.4\) (b) \(M(r, 0.4)>3\) (c) \(M(r, 0.8) <1.2\)
-
How do you classify steam generators ?
-
Does a steady-state response of the differential equation exist for the following? (a) \(3 \ddot{x}+2700 x=20 \sin 30 t\) (b) \(3 \ddot{x}+40 \dot{x}+2700 x=20 \sin 30 t\) (c) \(3 \ddot{x}+2700 x=20...
-
Design an alkyd resin from the following components. (6 pts) of phthalic anhydride OH CH HO-H-C-CH-OH CH OH pentaerythritol 0 CH O C- CH C17 O CH-O-C-C17 0-C-C17 O vegetable oil Set Pgel = 1.0. What...
-
Find i 0 (t) for t > 0 in the circuit in Fig. 16.72 . 2 + Vo 1 7.5e-2t u(t) V ( +) 4.5[1 u(t)]V 0.5v. 1H
-
Plaintiff (Ken Rea), as personal representative of his mothers estate, brought this action to set aside a deed from his mother to defendant Paulson (Larry), a son of decedent by a second marriage,...
-
Discuss when a member of a limited liability company does or does not have the following rights or powers: (a) To assign her interest in the LLC, (b) To receive repayment of loans made to the LLC on...
-
On June 1, Smith contracted with Martin doing business as Martin Publishing Company to distribute Martins newspapers and to account for the proceeds. As part of the contract, Smith agreed to furnish...
-
The slender bar \(A B\) weighs \(60 \mathrm{lb}\) and moves in the vertical plane, with its ends constrained to follow the smooth horizontal and vertical guides. If the 30-lb force is applied at...
-
A car door is inadvertently left slightly open when the brakes are applied to give the car a constant rearward acceleration \(a\). Derive expressions for the angular velocity of the door as it swings...
-
The wheel rolls up the incline on its hubs without slipping and is pulled by the \(100-\mathrm{N}\) force applied to the cord wrapped around its outer rim. If the wheel starts from rest, compute its...
Study smarter with the SolutionInn App