By what amount should Jen and Fred capital account change

Reference no: EM132759891

Question - Jen, Raks, and Fred are partners with average capital balances during 2019 of P945,000, P477,300, and P324,700, respectively. The partners receive 10% interest on their average capital balances; after deducting salaries of P244,650 to Jen and P165,250 to Fred, the residual profits or loss is divided equally. In 2019, the partnership had a net loss of P251,248 before the interest and salaries to partners. By what amount should Jen's and Fred's capital account change - increase (decrease)?

a. Jen, P60,534; Fred, (P80,896)

b. Jen, P58,952; Fred, P35,072

c. Jen, P56,716; Fred, P64,916

d. Jen, P81,688; Fred, P62,470

Reference no: EM132759891

Questions Cloud

What can NationsBank do to recover the unpaid interest : Four years after it is registered, SAOM becomes insolvent. What can NationsBank do to recover the unpaid interest or to enforce its security

Briefly describe the code of ethics for the ceo : Briefly describe the Code of Ethics for the CEO and senior financial officers and What was the purpose of the Form 8-K or put another way, what is discussed

Calculate the net income for the period and find the balance : M&N Phones for the year ended Dec. 31, 2014, Calculate the net income for the period and find the balance of retained earnings on Dec. 31, 2014.

Draw out the benetton supply chain : Draw out the Benetton supply chain and identify the major operationsobjectives of Benetton's retail operations,

By what amount should Jen and Fred capital account change : The partnership had a net loss of P251,248 before the interest and salaries to partners. By what amount should Jen's and Fred's capital account change

Explain what requirement means : Another entity under conditions that are potentially favourable, or potentially unfavourable, to the entity. Explain what this requirement means.

Health care organizations and the health care labor force : Is there evidence that the increasing size and complexity in health care organizations correspond to an increased likelihood of ethical and legal transgression

Sexism-ageism and religion : Hate incidents are becoming more prevalent on college campuses and your campus is not alone in this recent trend.

Estimate reliable acquisition costs : Provide 4 examples of sources for data to enable you to estimate reliable acquisition costs. What does this need to consider in terms of contractual obligations

User Account

All Pages