Hi, coaches! I'm asking for a help with these problems. Its regards to the partnership, I hope I can learn more from you.
Problem 1: Jerome. Enrico and Colin are manufactures\" representative in the architecture business. Their capital accounts in the JEC Partnership for 2020 were as follows: -m _ _m _ _ _ _ Required: For each of the following independent cases. prepare the income distribution schedule. a. Salaries are P15.000 to Jerome. P20.000 to Enrico and P18.000 to Coiin. Jerome receives a bonus of 5% of net income after deducting his bonus. Interest is 10% of ending capital balances. Any remainder is divided by Jerome. Enrico and Colin in a 3:3:4 ratio. Net income was P80.000. b. Interest is 10 percent of weighted average capital balances. Salaries are P24.000 to Jerome. P21.000 to Enrico and P25.000 to Colin. Enrico receives a bonus of 10 percent of net income after deducting the bonus and his salary. Any remainder is divided equally. Net income was P70.000. c. Colin receives a bonus of 20 percent of net income after deducting the bonus and the salaries. Salaries are P21.000 to Jerome. P18.000 to Enrico and P15.000 to Colin. Interest is 10 percent of beginning capital balances. Any remainder is divided by Jerome. Enrico and Colin in an 7:8:5 ratio. Net income was P95.000. Problem 2: Nilo. Jessa and Ladie open an accounting practice on January 1. 2020 in Davao City. The business is to be operated as a partnership with Nile and Jesse serving as the senior partners because of their years of experience. To establish the business. Nilo. Jessa and ladle contribute cash and other properties valued at P420000. P380000 and P180000. respectively. A partnership is drawn up that carries the foliowing stipulations: a. Personal drawings are allowed up to an amount equal to 10 percent of the beginning capital balance for the year. b. Profits and losses are allocated according to the following plan: 1. A salary allowance is credited to each partner in an amount equal to P18 per billable hour worked by that individual during the year. 2. Interest is credited to the partners' capital accounts at the rate of 12 percent of the average monthly balance for the year (computed without regard for current income or drawings}. 3. An annual bonus is to be credited to Nile and Jesse. Each bonus is to be 10 percent of net income after subtracting the bonus. the salary allowance. and the interest. Also. included in the agreement is the provision that the bonus cannot be a negative amount. 4. Any remaining partnership prot or loss is to be divided even' ll partners. 2/ 3 Because of monetary problems encountered in getting the business started. Nuo invests an additional P18.200 cash on May 1. 2020. The bl liable hours for the partners during the year are as follows: Nilo 3.420 Jessa 2.880 Ladle 2.660 The partnership net income for the year is P1 30. 000. Each partner withdraws the maximum allowable amount for the year. Required: a. Prepare the schedule of profit distribution b.Prepare the statement of changes In partners' equity for the year ending December 31. 2020. .\\\\_
