Red and Blue formed a joint venture to acquire and sell a special type of merchandise. Red is to manage the venture and to furnish the capital. The participants are to share equally any gain or loss on the joint venture. On April 1, 2022, Blue sent Red P10,000 cash, which was all used to purchase merchandise. On April 27, one half of the merchandise was sold for P7,200 cash. Red paid the cost of delivering merchandise to customers which amounted to P260. No further transactions occurred until the end of the month. The profit (loss) of the venture for the month of April:
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- Reyes and Santos formed a joint operation to acquire and sell a particular lot of merchandise Reyes was to manage the operation and to furnish the capital, and the operators were to share equal in any gain or loss. On June 10, 2024. Santos sent Reyes P10.000 cash, which was immediately used to purchase merchandise which cost P10,000. Reyes paid freight of P240 on the merchandise purchased. On June 24, one half merchandise was sold for P7,200 cash. Reves paid the cost of delivering merchandise to customers, which amounted to P260. No further transactions occurred on June 30, 2024. 1. The profit (loss) of the operation for the period June 10 - June 30, 2024 is: 2.On June 30, 2024 after recognizing the profit (loss) on the uncompleted operation, the account of Santos on the books of Reyes will show a debit (credit) balance of:Kara and Mia formed a joint arrangement to acquire and sell a special type of merchandise. Kara is to manage the joint arrangement and to furnish the capital. The joint operations are to share equally any gain or loss on the joint operations. On April 1,2020, Mia sent Kara P10,000 cash, which was all used to purchase merchandise, Kara paid freight of P240 on the merchandise purchased. On April 27, one half of the merchandise was sold for P7,200 cash. Kara paid the cost of delivering merchandise to customers which amounted to P260. No further transactions occurred until the end of the month. The profit(loss) of the joint arrangement for the month of April,2020 is:Bang, Bing and Bong formed a joint venture in 2010 to sell computers. They assigned Bing as the manager of the joint venture. They agreed to divide profits equally. They terminated the venture on December 21, 2011 with unsold merchandise. On this date, Bing’s trial balance shows the following account balances before profit distribution: Debits: Joint Venture Cash P90,000, Joint Venture P23,500, Bong, Capital P15,600. Credit: Bang, Capital P32,500. Bing received P 5,300 as her share in the joint venture profit. Bing agreed to be charged for the unsold merchandise as of December 31, 2010. What is the amount due to Bang upon final settlement? *Your answer
- In January 2018, Nick Marasigan and Dems Asacta agreed to purchase and sell chocolate candies. Marasigan contributed P2,400,000 in cash to the business. Asacta contributed the building and equipment, valued at P 2,200,000 and P 1,400,000, respectively. The partnership had profits of P480,000 during 2018 but was less successful during 2019, when profit was only P400,000. Required:1. Prepare the journal entry to record the investment of both partners in the partnership.2. Determine the share of profit for each partner in 2018 and 2019 under each of the following conditions:a. The partners agreed to share profit equally.b. The partners failed to agree on a profit-sharing arrangement.c. The partners agreed to share profit according to the ratio of their original investments.d. The partners agreed to share profits by allowing interest of 10% on their original investments and dividing the remainder equally.e. The partners agreed to share profits by allowing salaries of P400,000 for Marasigan…In January 2018, Nick Marasigan and Dems Asacta agreed to produce and sell chocolate candies. Marasigan contributed P2400000 in cash to the business. Asacta contributed the building and equipment, valued at P2200000 and P1400000, respectively. The partnership had profits of P840000 during 2018 but was less successful during 2019, when profit was only P400000.Required:1.Prepare the journal entry to record the investment of both partners in the partnership.2.Determine the share of profit for each partner in 2018 and 2019 under each of the following conditions:a.The partners agreed to share profit equally.b.The partners failed to agree on a profit-sharing arrangement.c.The partners agreed to share profit according to the ratio of their original investment.d.The partners agreed to share profits by allowing interest of 10% on their original investments and dividing the remainder equally.e.The partners agreed to share profits by allowing salaries of P400000 for Marasigan and P280000 for…On Apr. 8, 2020, Tolentino who has her own retail business and Tan, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Tolentino is as follows: Tolentino Marketing Statement of Financial Position April 8, 2020 Assets Cash P 4,000 Accounts Receivable P160,000 Less: Allowance for Uncollectible Accounts 16,000 144,000 Inventory 200,000 Equipment P 50,000 Less: Accumulated Depreciation 10,000 40,000 Total Assets P388,000 Liabilities and Capital Accounts Payable P 36,000 Tolentino, Capital 352,000 Total Liabilities and Capital P388,000
- 1. As of July 1, 2020, MM and AA decided to form a partnership. Their balance sheets on this date are: Cash P 15,000 P 38,000Accounts Receivable 680,000 255,000Allowance for doubtful accounts (140,000) (30,000)Merchandise Inventory 202,000Machinery and Equipment 150,000 270,000Total P705,000 P735,000 Accounts Payable 135,000 240,000MM, capital 570,000AA, capital - 495,000Total P705,000 P735,000 The partners agreed that the machinery and equipment of MM is under depreciated by P15,000 and that of AA by P45,000. Allowances for doubtful accounts is to be set up amounting to P120,000 for MM and P40,000 for AA. The partnership agreement…On February 28, 2022, Aris and Yang formed a partnership. The partners agreed to invest equal amounts of capital. Aris invested his proprietorship’s assets and liabilities as follows: Account Book Value Fair Value Accounts Receivable ₱72,000 ₱72,000 Allowance for Bad Debts 0 10,500 Merchandise Inventory 223,400 241,000 Prepaid Expenses 17,000 17,000 Office Equipment 459,000 276,000 Accumulated Depreciation 153,000 0 Accounts Payable 191,000 191,000 On February 28, Yang invested cash in an amount equal to the current market value of Aris’ partnership capital. Prepare the journal entries to record the partner’s initial investment in the new partnership Prepare the partnership’s statement of financial position immediately after its formation on February 28, 2022On March 1, 2018, X and Y formed a partnership. The partners contributed the following: (see attached image) The partners agree on the following:a. P10,000 of the accounts receivable of X is to be written-off.b. An allowance for doubtful accounts of 15% is to be established on the remaining receivables of X and Y.c. The inventory of Y is to be valued at P140,000.d. The equipment of X is under depreciated by P20,000 and the equipment of Y has a fair value of P190,000.e. The note of X is dated December 1, 2017 and is subject to a 12% interest. Interest had not yet been accrued.f. The partners agree on a 2:1 profit and loss ratio.g. The partners agree to bring their capital balance proportionate to their profit and loss ratio.Requirement:1. If Y's Capital is to be used as basis, how much is the adjusted capital of X after the formation? 2. What is the total assets of the partnership immediately after the formation?3. If the goodwill method is to be used in determining the capital of each…
- Sunflower and Pink Rose started partnership business on April 01, 2016 with capitals of Rs. 2,50,000 and Rs.1,50,000, respectively. On October 01, 2016, they decided that their capitals should be Rs. 2,00,000 each. The necessary adjustments in the capitals are made by introducing or withdrawing cash.Interest on capital is to be allowed @ 10% p.a. Calculate interest on capital as on March 31, 2017.Nhyiraba Limited entered into a joint venture with KK Quinton Limited agreeing to share profits or losses equally. Nhyiraba Limited gave an amount of R25,000 as the contribution whiles KK Quinton Limited contributed R28,000 and deposited all the amount in a joint bank account. They acquired goods worth R50,000 from Kwasi Limited and paid R45,000. They accepted a bill for the remaining amount and also their bills payable on the due date. Expenses of R5,000 for electricity, R3,000 for rent and an amount of R1,500 for sales expense was made during the period. All the goods were sold for R70,500 and all necessary requirements were met. The joint venture was closed after the execution of the project. Required: Show the necessary journal entries and ledger accounts in a separate set of books.Victoria, Wilda and Xenia are partners in a consultancy firm which commenced its operation on July 1, 2018. Victoria is the managing partner. As per agreement for sharing profits, the managing partner will receive a salary of P12,000 per month and the remaining profit will be shared by the partners equally. On December 31, 2018, the firm determined that its income was P 300,000. How much will Wilda receive as her share in the profit? A. P 76,000 B. P 96,000 C. P 52,000 D. P 84,000