Question
In: Finance
On January 1, 2019, MARIA, MARA, MARIZ, and MARLA formed 4M Trading Co., a partnership with...
On January 1, 2019, MARIA, MARA, MARIZ, and MARLA formed 4M
Trading Co., a partnership with capital contributions as follows :
MARIA, P50,000; MARA, 25,000; MARIZ, P25,000; and MARLA, P20,000.
The partnership contract provided that each partner shall receive a
5% interest on contributed capital, and that MARIA and MARA shall
receive salaries of P5,000 and P3,000, respectively. The contract
also provided that MARIZ shall receive a minimum of P2,500 per
annum, and MARLA a minimum of P6,000 per annum, which is inclusive
of amounts representing interest and share of remaining profits.
The balance of the profits shall be distributed to MARIA, MARA,
MARIZ and MARLA in 3:3:2:2 ratio.
What amount must be earned by the partnership, before any
charge for interest and salaries, so that MARIA may receive an
aggregate of P12,500 including interest,, salary and share of
profits?
Solutions
Expert Solution
1st Step is to create an equation =
Lets profit before intrest, salaries and profits be X
Proft = X
jeff jeffy answered 2 years agoRelated Solutions
On January 1, 2016, Jack and Maya formed a partnership, JM Co. with the agreement that...
On January 1, 2016, Jack and Maya formed a partnership, JM Co.
with the agreement that income would be split equally by the
partners. Jack's initial investment consisted of cash of $5,000 and
a building with a fair market value of $105,000. Maya's initial
investment consisted of $110,000 cash. For 2016, the first year of
operations, the net loss for the partnership was $18,000. During
the first year, neither partner withdrew any money from the
partnership. The partnership has a...
On January 1, Year 1, Marla, Jackson, and Helena started a partnership for a silk-screen t-shirt...
On January 1, Year 1,
Marla, Jackson, and Helena started a partnership for a silk-screen
t-shirt shop called Smar-Tees and are all active in the management
of the company. The company uses a calendar year tax period. Marla,
Jackson, and Helena’s initial outside tax bases in their
partnership interests were $5,000, $50,000, and $60,000,
respectively. These bases include all relevant property contributed
and debt allocations from the date of initiation. On the date the
partnership was initiated, the only debt...
1. Rick, Mary, and Joe formed a partnership on January 1, 2017,with investments of $100,000,...
1. Rick, Mary, and Joe formed a partnership on January 1, 2017,
with investments of $100,000, $150,000, and $200,000, respectively.
For division of income, they agreed to (1) interest of 10% of the
beginning capital balance each year, (2) annual compensation of
$10,000 to Mary, and (3) sharing the remainder of the income or
loss in a ratio of 20% for Rick, and 40% each for Mary and Joe. Net
income was $150,000 in 2017 and $180,000 in 2018.Each partner...
On January 1, 2017, the dental partnership of Angela, Diaz, and Krause was formed when the...
On January 1, 2017, the dental partnership of Angela, Diaz, and
Krause was formed when the partners contributed $54,000, $82,000,
and $84,000, respectively. Over the next three years, the business
reported net income and (loss) as follows:
2017
$
94,000
2018
66,000
2019
(49,000
)
During this period, each partner withdrew cash of $17,000 per
year. Krause invested an additional $6,000 in cash on February 9,
2018.
At the time that the partnership was created, the three partners
agreed to...
On January 1, 2017, the dental partnership of Angela, Diaz, and Krause was formed when the...
On January 1, 2017, the dental partnership of Angela, Diaz, and
Krause was formed when the partners contributed $32,000, $60,000,
and $62,000, respectively. Over the next three years, the business
reported net income and (loss) as follows:
2017
$
72,000
2018
44,000
2019
(27,000
)
During this period, each partner withdrew cash of $13,000 per
year. Krause invested an additional $4,000 in cash on February 9,
2018.
At the time that the partnership was created, the three partners
agreed to...
On January 1, 2017, the dental partnership of Angela, Diaz, and Krause was formed when the...
On January 1, 2017, the dental partnership of Angela, Diaz, and
Krause was formed when the partners contributed $50,000, $79,000,
and $80,000, respectively. Over the next three years, the business
reported net income and (loss) as follows:
2017
$
90,000
2018
62,000
2019
(45,000
)
During this period, each partner withdrew cash of $13,000 per
year. Krause invested an additional $7,000 in cash on February 9,
2018.
At the time that the partnership was created, the three partners
agreed to...
A. Smith and B. Jones are in partnership, trading as A. Smith & Co., retail drapers....
A. Smith and B. Jones are in partnership, trading as A. Smith
& Co., retail drapers. The following trial balance is extracted
from their books at 30 June 2002:
Accumulated depreciation R1 600. Advertising R1 000. Barclays
bank R6 600. Buildings, at cost R40 000. Capital A. Smith-Balance
at 31 Dec. 2001 R60 000. Capital B. Jones - Balance at 31 Dec. 2001
R36 000. Creditors R13 000. Customs duty R7600. Debtors R16 000.
Delivery charges R2 200. Drawings A....
Below is information related to Dubai Trading Co. though September 2019 1- On October 1, the...
Below is information related to Dubai Trading Co. though
September 2019
1- On October 1, the company started the Business with Capital of
400,000 Dhs.
deposited in the ADIB Bank
2- On October 3, Dubai Trading Co. Borrowed 50,000 Dhs. from ABC
Bank (Bank
lone) received the amount cash
3- On October 6, Dubai Trading Co. purchased office equipment from
Noor Co.
on Credit costs 60,000 Dhs.
4- On October 10, Dubai Trading Co. transferred 20,000 Dhs. from
the cash...
Imran , Irphan and Issa started a partnership firm on January 1 , 2019. They contributed...
Imran , Irphan and Issa started a partnership firm on January 1 ,
2019. They contributed RO 25,000 RO 20,000 and RO 15,000
respectively as their capitals and decided to share profits in the
ratio of 3 : 2 : 1 . The partnership deed provided that Imran is to
be paid salary of RO 500p.m. and Irphan is to be paid a commission
of RO 2,500 . It also provided that interest on capital be allowed
@ 8 %...
Q#6) On January 1, 2017, the dental partnership of Angela, Diaz, and Krause was formed when...
Q#6) On January 1, 2017, the dental partnership of Angela, Diaz,
and Krause was formed when the partners contributed $50,000,
$79,000, and $80,000, respectively. Over the next three years, the
business reported net income and (loss) as follows:
2017
$
90,000
2018
62,000
2019
(45,000
)
During this period, each partner withdrew cash of $13,000 per
year. Krause invested an additional $7,000 in cash on February 9,
2018.
At the time that the partnership was created, the three partners
agreed...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What do you think about adult and childhood obesity? What do you really think is at the...
- When does chain of custody begin and when does it end?
- List the policies thst a small business woupd need to develop. Include in each of these...
- Question: Strawberry Internationalwishes to conduct a research study using their employees as key participa... Edit question...
- This assignment requires you to use at least one loop and an array. You can refer...
- 3. Over the last twenty years, the U.S. economy has experienced its ups and downs, good...
- Calligraphy Pens is deciding when to replace its old machine. The machine's current salvage value is...
ADVERTISEMENT