AA, BB, and CC agree to sell construction tools for a period of one month. AA agrees to construct a stand on the front lawn of CC. CC willl be paid P3,000 for cleaning up the lawn after the one-month selling period. AA, BB, and CC decide that net income, if any will be allocated first to the P3,000 payment to CC and then by a 40% commission on individual sales. The balance will be distributed 75% to AA and 25% to BB. They agree that a cash box will complicate the matters and that all purchases and sales transactions will be out-of-pocket and the responsibility of the individual. Sales to AA, BB, and CC are that the ending inventory may be purchased at 50% of cost. other sales are to be made at 100% markup on cost. The activity to be at cost, except All of the joint operation is as follows: a. AA constructed the stand on the front lawn at a cost of P12,000; b. AA pays for P120,000 for various tools. CC pays P6,000 for permit to AA purchases additional construction operate the concession construction tools for P180,000, using P60,000 contributed by BB and P120,000 of personal money; d. Sales for the period were as follows: AA-P204,00; BB-P312,000; CC-P72,000; e. CC pays P10,800 for office supplies and these are distributed equally between AA, BB, and CC for their personal P6,000 for inventory was taken by AA. or business; с. at home. CC agrees to pay use the stand; f. The balance of construction tools
AA, BB, and CC agree to sell construction tools for a period of one month. AA agrees to construct a stand on the front lawn of CC. CC willl be paid P3,000 for cleaning up the lawn after the one-month selling period. AA, BB, and CC decide that net income, if any will be allocated first to the P3,000 payment to CC and then by a 40% commission on individual sales. The balance will be distributed 75% to AA and 25% to BB. They agree that a cash box will complicate the matters and that all purchases and sales transactions will be out-of-pocket and the responsibility of the individual. Sales to AA, BB, and CC are that the ending inventory may be purchased at 50% of cost. other sales are to be made at 100% markup on cost. The activity to be at cost, except All of the joint operation is as follows: a. AA constructed the stand on the front lawn at a cost of P12,000; b. AA pays for P120,000 for various tools. CC pays P6,000 for permit to AA purchases additional construction operate the concession construction tools for P180,000, using P60,000 contributed by BB and P120,000 of personal money; d. Sales for the period were as follows: AA-P204,00; BB-P312,000; CC-P72,000; e. CC pays P10,800 for office supplies and these are distributed equally between AA, BB, and CC for their personal P6,000 for inventory was taken by AA. or business; с. at home. CC agrees to pay use the stand; f. The balance of construction tools
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 1BD
Related questions
Question
Transcribed Image Text:operation.
AA, BB, and CC agree to sell construction tools for a period of
one month. AA agrees to construct a stand on the front lawn of
CC. CC will be paid P3,000 for cleaning up the lawn after the
one-month selling period. AA, BB, and CC decide that net income,
if any will be allocated first to the P3,000 payment to CC and
then by a 40% commission on individual sales. The balance will be
distributed 75% to AA and 25% to BB. They agree that a cash box
will complicate the matters and that all purchases and sales
transactions will be out-of-pocket and the responsibility of the
to be at cost, except
individual. Sales to AA, BB, and CC are
that the ending inventory may be purchased at 50% of cost. All
other sales are to be made at 100% markup on cost. The activity
of the joint operation is as follows: a. AA constructed the stand
cost of P12,000; b. AA pays for P120,000
P6,000 for permit to
on the front lawn at a
for various construction tools.
operate the concession or business;
construction tools for P180,000, using P60,000 contributed by BB
and P120,000 of personal money; d. Sales for the period were
follows: AA-P204,00; BB-P312,000; CC-P72,000; e.
for office supplies and these are distributed equally between AA,
BB, and CC for their personal
P6,000 for
inventory was taken by AA.
CC
Сс раys
AA purchases additional
C .
as
CC pays P10,800
use
at home.
CC agrees to pay
the stand;
The balance
f.
of
construction tools
laint on oration not income orlocs *
Transcribed Image Text:Joint operation net income or loss *
Your answer
Net income allocation-AA *
Your answer
Net income allocation-BB *
Your answer
Net income allocation-CC
Your answer
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning