4.

4. At the end of its first year of operation on December 31, 2018, the GMC Music Store accounts showed the following: Partners R. Valera A Rivera J. Chan Drawings Capital P18,000 P45,000 13,500 30,000 6,000 15,000 The capital balances represent partners initial capital investments, Direction a) Given the following independent agreements you are required to: (1) Prepare the entry to distribute profit of P45,000 under the profit sharing agreement of 4:3:2, respectively. (2) Prepare the entry to distribute profit of P54,000. Valera and Rivera are given salary allowances of P16,500 and P12,750, respectively. Residual profit is shared by all based on capital contributions. (3) Prepare an allocation table to distribute profit before tax of P75,000. Each partner is allowed 10% interest on beginning capital balances. Valera is given a P27,000 salary allowance. The remainder is shared equally. Using the allocation table, prepare one entry to record the profit distribution. Tax rate is 30%. b) Prepare a partnership statement of changes in equity for the year 2018 using agreement (3) only