Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

image text in transcribed

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%

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

Accounting The Basis For Business Decisions

Authors: Robert F. Meigs, Jan R. Williams, Susan F Haka, Mark S. Bettner

International 11th Edition

007115809X, 978-0071158091

More Books

Students also viewed these Accounting questions

Question

=+interactive online components, out-of-home messages, print ads,

Answered: 1 week ago

Question

=+Why does the brand want to advertise?

Answered: 1 week ago

Question

=+12. Did your concept illustrate the brand's personality?

Answered: 1 week ago