Accounting Business Financial Accounting The JR Asia Consultancy Firm which is owned and managed by two CPAS, Joffre and Ric started operation on March 31, 2015. Initial investments of the... Share Question

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Question I. The JR Asia Consultancy Firm which is owned and managed by two CPAS, Joffre and Ric started operation on March 31, 2015. Initial investments of the partners are: Mat P800,000 and ... Stella P400,000. Profit agreement as shown in the articles of co-partnership follows: Distribute profit by giving partners a 6.75% interest on contributions, a 10% bonus treated as a distribution of profit to Mat, remaining profit divided equally as both are CPAs. 1. If profit at the end of Dec 31 is reported as P200,000, how much will be Mat's profit share? 2. If Stella earns a total profit share of P69,750 at the end of 2015, how much will Mat earn? 3. Stella was not satisfied with the agreement. She wants the bonus to be 10% after interest and bonus. If Stella earns P69,750, how much will the bonus be? [Show More]

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