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Marinos capital on December 31, 2020, after closing the net profit and drawing accounts amount to? Marino and Argentina entered into partnership on March 1,
Marinos capital on December 31, 2020, after closing the net profit and drawing accounts amount to?
Marino and Argentina entered into partnership on March 1, 2020, investing $125,000 and $75,000, respectively. It was agreed that Marino, the managing partner, was to receive a salary of P12,000 per year and also 10% bonus on the net profit after adjustment for the salary; the balance of the profit was to be divided in the ratio of their original capital. On December 31, 2020, account balances are as follows: Cash Accounts Receivable Furniture & Fixture Purchases Sales Returns & Allows. Operating Expenses P70,000 67,000 45,000 196,000 5,000 60,000 Accounts Payable Sales Marino, Capital Argentina, Capital Marino, Drawing Argentina, Drawing P60,000 233,000 125,000 75,000 (20,000) (30,000) Inventories on December 31, 2020 were: Merchandise, 73,000; Supplies, P2,500. Prepaid insurance were P950 and accrued liabilities totaled P1,550. Depreciation on furniture and fixtures is to be computed at 20% per year. Income tax rate is 30%
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