NAME: SECTION: SCORE: PROFESSOR: Problem #17 ribution of Profits or Losses Based on Partners' Agreement uz cunglao and Java are partners in a bakery business. The activity in each partner's capital account for 2010 follows: Jan. Feb. 12 Jan. 1 May 25 Dec. 10 Sunglao, Capital 200,000 80,000 40,000 70,000 20,000 10,000 300,000 Mar. 23 July 10 Sept. 30 Oct. 19 Java, Capital 300,000 50,000 50,000 50,000 180,000 230,000 100,000 Dec. 5 Dec. 30 Dec. 31 Dec. 30 Dec. 31 The drawing account is not used. The profit for 2010 is P2,000,000. Required: Determine the partners' share in the profit under each of the following assumptions: 1. Beginning capital balances. 2. Average capital balances. (Investments and withdrawals are assumed to have been made as of the beginning of the month if made before the middle of the month, and assumed to have been made as of the beginning of the following month if made after the middle of the month.) 3. Ending capital balances. 4. Bonus to Sunglao equal to 20% of profit in excess of P1,500,000, balance to be divided equally. 5. Salary allowances of P450,000 and P350,000 to Sunglao and Java, respectively; interest on average capital balances imputed at 10%; balance to be divided equally. (Investments and withdrawals are treated as in requirement #2.)