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Determine the amount of income for the year ended December

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Reference no: EM132800253

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Q1. The capital balances in the BEE are Betty's capital P600,000, Eli's capital P500,000, and Edna's capital P400,000, and income ratios are 5:3:2, respectively. The BEER Partnership is formed by admitting Rina to the firm with a cash investment of P600,000 for a 25% capital interest. Compute the bonus to be credited to Edna's capital in admitting Rina?

Q2. DUA and LIPA share earnings in a 60:40 ratio. They have decided to liquidate their partnership. A portion of the assets has been sold but other assets with a carrying amount of P62,000 still must be realized. All liabilities have been paid, and cash of P28,000 is available for distribution to partners. The capital accounts show balances of P90,000 for Aguilar and P55,000 for Bernardo. How much of the available cash for distribution should be given to DUA?

Q3. When JUSTIN and BIEBER, partners who share earnings 60:40, were severely injured in an accident, a liquidator was appointed to wind up their business. The accounts showed cash, P90,000; other assets, P235,000; liabilities, P45,000; Justin's capital, P126,000; and Bieber's capital, P154,000. The expenses of liquidating the business (advertising, rent, travel, etc.) are estimated at P25,000. How much cash can be distributed safely at this point?

Q4. The books of Hope Enterprises showed the following adjusting entries at the end of the period:

Depreciation expense 5,000

Accumulated depreciation 5,000

Bad debts expense 1,000

Allowance for bad debts 1,000

Unearned rent income 3,000

Rent income 3,000

Utilities expense 4,000

Accrued utilities expense 4,000

How much is the total amount for reversal at the start of the next fiscal year relating to these adjusting entries?

Q5. On February 14, 2020, Love, Mahal and Heart agreed to form a partnership and share profits in the ratio of 40:40:20. They also agreed that Heart shall receive a monthly salary of 5,000. If Heart receives P80,000 in the distribution of profits, determine the amount of income for the year ended December 31, 2020?

Q6. The collection of an account in the amount of 20,000 was recorded and posted in the books as a debit to cash and credit to Sales by 2,000. At what amount should the affected accounts be corrected?

Reference no: EM132800253

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