Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kenny and Rogers share P L 5 0 : 5 0 . Kenny and Rogers will have salaries of P 2 0 , 0 0

Kenny and Rogers share PL50:50. Kenny and Rogers will have salaries of
P20,000 and P30,000, respectively, and both to receive 10% interest on their
average capital balances. Total net income for the year is P120,000.
If the average capital balances for Kenny and Rogers are P100,000 and P120,000, what will their
final profit allocations respectively?
a.50 k and 70 k
b.70 k and 50 k
c.54 k and 66 k
d.75 k and 45 k
If average capital for Kenny and Rogers is P112,000 and P119,000, respectively, what will be the
total amount of profit allocated after the salary and interest distributions are completed?
a.80 k
b.70 k
c.75 k
d.73.1 k
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Paul E. Dascher, Jerry R. Strawser, Robert H. Strawser, Ronald M. Copeland

8th Edition

0873937643, 978-0873937641

More Books

Students also viewed these Accounting questions