1. Christian Books has outstanding 10,000 shares of 10% preference share with a par value of P100 and 42,500 shares of P10 par value of Ordinary Shares. The balance in the retained earnings account at the end of the fiscal year 20x1 is P1,650,000. If the company purchases 1,000 shares of its own Ordinary Shares at P40 per share, what amount of retained earnings is available for payment of dividends?

2.

In 20x1, Drs. Soriano and Ramos, both medical doctors formed a partnership, with Dr. Soriano investing P100,000 and Dr. Ramos P120,000. They agreed to share net income as follows

• Monthly Salary allowances of P10,000 to Dr. Soriano and P8,000 to Dr. Ramos
• Interest at 12% of beginning capital account balances
• Any partnership net income in excess of the required to cover the interest and salary allowances to be divided according to the ratio 3 for Soriano : 2 for Ramos

In 20x3, the Net Income amounted to P500,000. The partnership paid a nurse P60,000 for her salary

1. Compute for the share of Dr. Ramos

2. Compute the salary expense of the partnership.

3. Compute for the share of Dr. Soriano