PROBLEM 2 (REVISED)

The partnership agreement of BADIE, CONNIEand NATIE in BACONA CO., a partnership engaged in vaccination services provides for the year-end allocation of net income in the following order:

* First, BADIE is to receive 10% of net income up to P200,000 and 20% over P200,000.

* Second, CONNIE and NATIE each are to receive 5% of the remaining income over P300,000.

* The balance of income is to be allocated equally among the three partners.

During the year, the partners made a total withdrawal of P30,000, P20,000, and P10,000 respectively.

The partnerships 2021 income statement shows a total revenue of P1,200,000 and total operating expenses of P700,000 before any allocations to partners.

Required:

1. Prepare a division of profit and loss in good form for BACONA CO.

2. Give the journal entries to close all the nominal and temporary accounts.