Hope and Jake formed a partnership on January 1, 2020. The changes in their respective capital balances during the calendar year ended December 31, 2020 is presented below. During the year, the partnership earned a net income of Php 360,000.

Hope, Capital Jake, Capital

10/31 30,000 1/1 180,000 6/30 40,000 1/1 220,000

5/31 50,000 10/31 70,000

Instruction: Prepare a profit distribution schedule and the journal entries to record the allocation of the partnership income to individual capital accounts under each of the following assumptions:

1. Each partner receives 8% interest on the beginning of the year capital balances and the remainder is divided between Hope and Jake in the ratio of 3:1 respectively.
2. Hope and Jake are given annual salaries of Php 70,000 and Php 130,000 respectively; 12% interest on the end of year capital balances and the remainder is divided equally.
3. Hope and Jake are given salaries of Php 145,000 and Php 185,000 respectively, 12% interest on average capital balances, and the remainder divided in the ratio of 3:1.
4. Hope and Jake are given salaries of Php 50,000 and Php 100,000 respectively, 10% on average capital balances, and the remainder divided 40% to Hope and 60% to Jake.
5. Each partner receives 8% interest on beginning of the year capital balances and a salary of Php 50,000; Hope receives a bonus of 10% of net income after deducting interest and salaries and the remainder is divided in the ratio of 2:3.