PART 2 PARTNERSHIP OPERATIONS Partners' agreement states that profits and losses shall be divided between Samsodin, Miranda, and Villanueva in a 30:40:30 ratio, respectively, after considering the following: o Annual salaries of P180,000 to Miranda, and P150,000 to Villanueva. O 15% interest on each of their respective beginning capital balance. o Miranda, as the managing partner, will be given 20% bonus after salaries, interest, and bonus. Requirement #2: (15 pts.) a) Based on your Income Statement in Requirement #1, distribute the profit (loss) to the partners by completing the Profit (Loss) Distribution Schedule below: Samsodin Miranda Villanueva Total Salaries Interest Bonus Remainder Share in Profit (Loss) p p b) Determine the ending capital balances of the partners. Samsodin Miranda Villanueva PART 3 PARTNERSHIP DISSOLUTION 3.1 Assuming that on January 2, 2021, Julio Flores was admitted to the Summerville Company by investing P100,000 cash and P150,000 worth of office equipment, for a 20% interest in the partnership. Requirement #3: (10 pts.) a) Journal entry to record the admission of Julio Flores: ANSWER: b) Capital balances and P/L ratios of the partners after the admission of Julio Flores: Partners Capital Balances P/L Ratios Samsodin P Miranda Villanueva Flores Total 3.2 Disregarding the effects of your answers in 3.1, assuming instead that partners Samsodin, Miranda, and Villanueva are contemplating to close the business. The partners estimate that total non-cash assets can be realized for P2,000,000; all liabilities will be paid in full; and liquidation expenses of P65,000 will be incurred and paid. Any available cash, shall then be distributed to Samsodin, Miranda, and Villanueva. Requirement #4: (20 pts.) Prepare the following in good form: a) Cash Priority Program b) Statement of Partnership Liquidation