In solving for this quiz, refer to previous problems.
Profit-sharing for Sugarpop Partnership was again revised as follows:
- Respective salaries for Renzo, Pocholo, Vanessa, and Julie Ann were P2,500; P3,000; P2,750; and P2,250 per month.
- All partners are to be credited 10% interest on their balances as of December 31, 2017.
- A bonus of 5% of net income after bonus shall be given to Pocholo.
- Remainder is to be divided on their new capital and P/L ratio. (Hint: Revised respective Capital and P/L ratios after Julie Ann’s admission will be 25%, 17%, 18%, and 40%, respectively for Renzo, Pocholo, Vanessa, and Julie Ann.)
- A portion of unexpired rent used from April to December is to be recognized.
- Profit reported for the year was P1,055,000. This does not include the whole deferred revenue of P25,000 realized during the period.
- Prepare schedule of distribution of profits.
- Adjusting entries.
- Statement of financial position as of December 31, 2018.
P2 Problem prepared by: TweetNewscaster
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