Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sunglao and Java are partners in bakery business. The activity in each partner's capital account for 2019 follows: Sunglao, Capital Java, Capital 200,000 80,000
Sunglao and Java are partners in bakery business. The activity in each partner's capital account for 2019 follows: Sunglao, Capital Java, Capital 200,000 80,000 Jan.1 Feb. 1 300,000 Jan.1 Mar.30 50,000 May 30 40,000 July 1 50,000 70,000 Oct 30 Sept.30 50,000 Dec. 1 20,000 180,000 Dec. 1 10,000 Dec.30 480,000 Dec. 31 150,000 Dec.31 The profit for 2019 is 2,000,000. Required: Determine the partners' share in the profit under each of the following independent cases, and prepare the necessary journal entries: Case 1: Bonus to Sunglao equal to 20% of profit, balance to be divided equally. Case 2: Salary allowances of 450,000 and 350,000 to Sunglao and Java, respectively; interest on average capital balances computed at 10%. Bonus to Sunglao of 20% of profit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started