"PLEASE REFER TO THE GIVEN ON THE IMAGE BELOW"

Required: Make the income distribution schedule for each of the following independent cases:

1.Interest is 10% of weighted average capital balances. Annual salaries are P480,000 to AB, P630,000 to QR and P510,000 to XY. QR receives a bonus of 25% of net income after deducting the bonus and his salary. Any remainder is divided in a 2:3:4 ratio by AB, QR and XY, respectively. Net income was P1,050,000 before any allocations.

2.Monthly salaries are P30,000 to AB, P50,000 to QR and P45,000 to XY. AB receives a bonus of 5% of net income after deducting his bonus. Interest is 12% of ending capital balances. Any remainder is divided by AB, QR and XY in a 25:40:35 ratio. The Income Summary account has a credit balance of P2,835,000 before closing.

3.XY receives a bonus of 20% of net income after deducting the bonus and the salaries. Annual salaries are P600,000 to AB, P540,000 to QR and P750,000 to XY. Interest is 15% of the ending capital in excess of P140,000. Any remainder is to be divided by AB, QR and XY in the ratio of their beginning capital balances. Net income was P1,740,000 before any allocations.

4.Monthly salaries are P32,000 to AB, P40,000 to QR and P42,000 to XY. QR receives a bonus of 10% of net income after deducting his bonus. Interest is 25% on the excess of the ending capital balances over the beginning capital balances. Any remainder is to be divided by AB, QR and XY in a 3:2:1 ratio. The Income Summary account has a debit balance of P750,000 before closing.

5.Annual salaries of P450,000 to AB, P540,000 to QR and P810,000 to XY are allowed to the extent of the earnings only. Any remainder is to be divided equally among the partners. Net income before allocation is P960,000.

6.Annual salaries of P350,000, P400,000 and P500,000 are given to AB, QR and XY, respectively. Any remainder is divided among the partners using a 5:3:2 ratio. Net income before allocation is P850,000. Salaries given to partners were accounted as operating expenses during 2015.

Problem 1: AB, QR and XY are manufacturers' representative in the wholesale business. Their capital accounts in the AQX Partnership for 2015 were as follows: AB QR XY January 1, Balances P135,000 P180,000 P75,000 March 1, withdrawal 36,000 April 1, investment 30,000 May 1, investment 72,000 June 1, investment 27,000 August 1, withdrawal 9,000 October 1, withdrawal 54,000 December 1, investment 18,000