The partnership contract for the SDF and MGB Partnership, a generatpartnership, provided for annual salaries of P140,000 and P175,000 to SDFand MGB, respectively, with the resulting profit or loss to be dividedequally.1.Profit before salaries for the year ended June 30, 2018 was P315,000.Required:Give the entry to transfer income summary account balance to drawingaccounts of the partners.

The journal entries are prepared to keep the record of day to day transactions of the business.

the SDF and MGB Partnership, a general partnership, provided for annual salaries of P140,000 and P175,000 to SDF and MGB, respectively, with the resulting profit or loss to be divided equally. Profit before salaries for the year ended June 30, 2018 was P315,000. Required: Give the entry to transfer income summary account balance to drawing accounts of the partners.

the SDF and MGB Partnership, a general partnership, provided for annual salaries of P140,000 and P175,000 to SDF and MGB, respectively, with the resulting profit or loss to be divided equally. Profit before salaries for the year ended June 30, 2018 was P315,000. Required: Give the entry to transfer income summary account balance to drawing accounts of the partners.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 3CE

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The partnership contract for the SDF and MGB Partnership, a general partnership, provided for annual salaries of P140,000 and P175,000 to SDF and MGB, respectively, with the resulting profit or loss to be divided equally. • Profit before salaries for the year ended June 30, 2021 was P315,000. Required: Give the journal entry to transfer income summary account balance to drawing accounts of the partners.
Problem 1. Alucard and Chou organized their partnership on 01/01/19. The following entries were made into their capital accounts during 2019. Required: If partnership profits for the year equaled P66,000, indicate the allocations between the partners under the following independent profit-sharing allocation conditions: Interest of 10% is allocated on weighted average capital balance and the remainder is divided equally. A salary of P9,000 will be allocated to Chou; 10% interest on ending capital is allocated to the partners; remainder is divided 60/40 to Alucard and Chou, respectively. Salaries are allocated to Alucard and Chou in the amount of P10,000 and P15,000, respectively and the remainder is allocated in the proportion to weighted average capital balances. A bonus of 10% of partnership profits after bonus is credited to Alucard, a salary of P35,000 is allocated to Chou, a P20,000 salary is allocated to Alucard, 10% interest on weighted capital is allocated, and remainder is…
Coburn (beginning capital, $60,000) and Webb (beginning capital $86,000) are partners. During 2022, the partnership earned net income of $74,000, and Coburn made drawings of $20,000 while Webb made drawings of $22,000.
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Income summary shows a credit balance of 1,800,000 at the end of the first year of operations.1. By what amount will the capital balance of MAR182 be credited on January 1, 2018?2. By what amount will the capital balance of MAR186 be credited on January 1, 2018?3. How much is the total assets of the partnership at the date of formation?4. What is the net effect of the adjustments made on January 1 to MAR186 capital balance?5. What is the weighted average capital of MAR182 in 2018?6. How much is the bonus given to MAR186?7. How much is the share of MAR182 in the partnership net income?8. How much is the share of MAR186 in the partnership net income?9. What is the ending adjusted capital balance of MAR182?10. What is the ending adjusted capital balance of MAR186?
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After closing the revenue and expense accounts, the profit for the year ended December 31, 2024, of the Mitt & Ryan partnership is $28.210. The partnership agreement specifies that profits and losses will be shared using the following formula. 1. Allocate profit by a 5% interest allowance on the partners' beginning capital balances. 2 Allocate salary allowances of $20,280 to Mitt and $14,690 to Ryan. 3. Remaining profit (loss) is to be shared on a ratio of 8:5 At the beginning of the year, Mitt's capital account had a balance of $33,800 and Ryan's capital account had a balance of $35,100. Mitt withdrew $1.130 cash per month while Ryan withdrew $1,360 per month from the partnership. During the year, Mitt made an additional investment of $5,650 cash into the partnership. Prepare a schedule to show how the profit or loss will be allocated to the two partners. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Profit Interest…
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P and T are in partnership sharing profits and losses in the ratio of 60:40. The partnership agreement provides that interest on partner’s capital account should be allowed at the rate of 10% pa. The following information has been made available for the year ended 31st Dec 2018. Net profit for the year RO 30,500 Partner P Partner T RO RO Capital Accounts on 1st Jan 2018 20,000 15,000 Current Account 1,800(Cr) 3,400 (Dr) Drawings for the year 12,785 18,275 Salary to be credited -- 6,000 Interest on drawings 640 910 You are required to: Prepare Journal Entries Prepare…