DO THIS TYPEWRITTEN FOR UPVOTE Questions 2 and 3 are based on the following:Several years ago, Roel and Jek formed RJ Partnership. The partnership agreement states that each partner is toreceive a salary of P10,000 per month and 5% interest on beginning-of-the-year capital balances; any remainderwould be divided between Roel and Jek in the ratio 2:3, respectively. The unadjusted trial balance of RJ Partnershipas of December 31, 2020, appears as follows:3.CashAccounts receivableInventory, January 1, 2020Furniture & fixtures, netBuilding, netRoel DrawingJek, drawingPurchasesOperating expensesTotalP 500,000300,000400,000150,000300,000100,000120,000600,000250,0002.720.000Accounts payableNotes payableRoel, capitalJek, capitalSalesTotal2. Determine the share of partner Roel on the net Income of 2020,A. P46,100B. (P21,100)Additional information:1. December 31, 2020, inventory was P550,000. 2020 purchases of P600,000 were recorded using the Periodicinventory method.2. Depreciation for 2020 on furniture and fixtures and building is determined to be 10% and 20%P 350,000200,000750,000620,000800,000respectively.of net valuation.3.On July 1, 2020, the partnership recorded a P100,000 additional capital contribution by Jek. Roel made noadditional capital contributions during the year.C. (P19,100)P2.720.000Determine the ending capital balance of partner Jek on December 31, 2020.A. P480,900B. P580,900C. P694,100D. P44,100D. P478,900WN

Distribution of Share to Partners A distribution is a transfer of money or other assets from a…

3. On July 1, 2020, the partnership recorded a P100,000 additional capital contribution by Jek. Roel made no additional capital contributions during the year. Determine the share of partner Roel on the net Income of 2020, A. P46,100 B. (P21,100) C. (P19,100) Determine the ending capital balance of partner Jek on December 31, 2020. A. P480,900 B. P580,900 C. P694,100 D. P44,100 D. P478,900

3. On July 1, 2020, the partnership recorded a P100,000 additional capital contribution by Jek. Roel made no additional capital contributions during the year. Determine the share of partner Roel on the net Income of 2020, A. P46,100 B. (P21,100) C. (P19,100) Determine the ending capital balance of partner Jek on December 31, 2020. A. P480,900 B. P580,900 C. P694,100 D. P44,100 D. P478,900

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 4PB

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