Reference no: EM132936385
Question - Credo, Dizon, and Flores are partners in CDF Company, with average capital balances for the year of PhP300,000, PhP400,000, and PhP200,000, respectively. They share remaining profits and losses in a 2:5:3 ratio, respectively, after each receives a PhP150,000 salary and 10% interest on his average capital balances.
??Required -
Prepare a) profit distribution schedule and b) journal entries to close the income summary, based on the following independent assumptions:
a. Profit of PhP740,000
b. Profit of PhP740,000, with bonus to Flores for managing the business equal to 15% of profit after salaries and interest
c. Profit of PhP540,000
d. Profit of PhP540,000, with bonus to Flores for managing the business equal to 20% of profit after salaries, interest, and bonus
e. Profit of PhP140,000
f. Loss of PhP60,000
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