BDO and OSD formed a joint operation to buy and sell certain merchandise. Their capital contributions and profit and loss ratios are presented below: Contributions Cash P & L Ratio Merchandise BDO P 5,000 P 8,000 50% OSD 6,000 50% A summary of the joint operation activities is as follows: Purchases of merchandise by OSD Expenses paid by OSD: P 4,000 P 400 Taxes and licenses Freight on merchandise contributed by BDO Delivery expense on merchandise sold Sales (all of the merchandise contributed and purchased by OSD and one-half of those contributed by 300 200 BDO) – selling price 14,000 The joint operation is terminated. Compute the share of OSD in income?
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- X Company and Y Company formed a joint venture, XY Company, in 20x1 to sell particular merchandise. Cash investments by the venturers X Company (65%) P1,200,000; Y Company (35%) P800,000. The following information is available:Purchases of merchandise on account, P1,500,000; Expenses paid, P100,000; Sales on account (130% of cost), P1,508,000.REQUIRED:11. What is the net income? ___________12. Using the equity method, what is the balance of the Investment in Joint Venture account in the books of Y Company on December 31, 20x1? ____________13. Using the equity method, what is the balance of the Investment in Joint Venture account in the books of X Company on December 31, 20x1? ____________Cersei and Jaime are joint operators who agreed to share profits and losses equally. The parties appointedJaime as the manager of the joint operation. The joint operation’s transactions during the year are as follows:a. Cersei invested inventory costing P301,497.b. Jaime invested cash of P350,393 to the joint operation.c. Jaime acquired additional inventory costing P129,564 using the joint operation’s funds.d. Jaime sells inventory costing P300,000 for P924,398 cash.e. Jaime settles expenses of P250,984 using the joint operation’s funds.No separate books are maintained for the joint operation. REQUIRED: 7. Prepare the entry for transaction (a) in Cersei’s books.8. Prepare the entry for transaction (c) in Jaime’s books.9. Prepare the entry for transaction (d) in Cersei’s books.10. Prepare the entry for transaction (e) in Jaime’s books.Cersei and Jaime are joint operators who agreed to share profits and losses equally. The parties appointedJaime as the manager of the joint operation. The joint operation’s transactions during the year are as follows:a. Cersei invested inventory costing P301,497.b. Jaime invested cash of P350,393 to the joint operation.c. Jaime acquired additional inventory costing P129,564 using the joint operation’s funds.d. Jaime sells inventory costing P300,000 for P924,398 cash.e. Jaime settles expenses of P250,984 using the joint operation’s funds.No separate books are maintained for the joint operation. REQUIRED: 8. Prepare the entry for transaction (c) in Jaime’s books.9. Prepare the entry for transaction (d) in Cersei’s books.10. Prepare the entry for transaction (e) in Jaime’s books.
- Cersei and Jaime are joint operators who agreed to share profits and losses equally. The parties appointed Jaime as the manager of the joint operation. The joint operation’s transactions during the year are as follows:a. Cersei invested inventory costing P301,497.b. Jaime invested cash of P350,393 to the joint operation.c. Jaime acquired additional inventory costing P129,564 using the joint operation’s funds.d. Jaime sells inventory costing P300,000 for P924,398 cash.e. Jaime settles expenses of P250,984 using the joint operation’s funds.No separate books are maintained for the joint operation.REQUIRED: 4. How much is the unsold inventory?5. Assuming Cersei takes the unsold inventory, how much will Cersei receive as cash settlement if the joint operation will be liquidated at the end of the year?6. Assuming Cersei takes the unsold inventory, how much will Jaime receive as cash settlement if the joint operation will be liquidated at the end of the year?Cersei and Jaime are joint operators who agreed to share profits and losses equally. The parties appointed Jaime as the manager of the joint operation. The joint operation's transactions during the year are as follows: a. Cersei invested inventory costing P301,497. b. Jaime invested cash of P350,393 to the joint operation. c. Jaime acquired additional inventory costing P129,564 using the joint operation's funds. d. Jaime sells inventory costing P300,000 for P924,398 cash. e. Jaime settles expenses of P250,984 using the joint operation's funds. No separate books are maintained for the joint operation. REQUIRED: 1. How much is the profit of the joint operation? 2. How much is Jaime's share in the profit? 3. How much is Cersei's share in the profit? Cersei and Jaime are joint operators who agreed to share profits and losses equally. The parties appointed Jaime as the manager of the joint operation. The joint operation's transactions during the year are as follows: a. Cersei invested…Cersei and Jaime are joint operators who agreed to share profits and losses equally. The parties appointed Jaime as the manager of the joint operation. The joint operation’s transactions during the year are as follows:a. Cersei invested inventory costing P301,497.b. Jaime invested cash of P350,393 to the joint operation.c. Jaime acquired additional inventory costing P129,564 using the joint operation’s funds.d. Jaime sells inventory costing P300,000 for P924,398 cash.e. Jaime settles expenses of P250,984 using the joint operation’s funds.No separate books are maintained for the joint operation.REQUIRED:1. How much is the profit of the joint operation?2. How much is Jaime's share in the profit?3. How much is Cersei's share in the profit?4. How much is the unsold inventory?5. Assuming Cersei takes the unsold inventory, how much will Cersei receive as cash settlement if the joint operation will be liquidated at the end of the year?6. Assuming Cersei takes the unsold inventory, how much…
- During 20x9, PP Corporation recorded sales of inventory costing P500,0000 to SS Company, its wholly owned subsidiary, on the same terms as sales made to third parties. At December 31,20x9, SS held one-fifth of this goods inventory. The following information pertains to PP and SS’s sales for 20x9: (see image below) In its 20x9 consolidated income statement, what amount should PP report as cost of sales?Star Company has outstanding a P6,000,000 note payable to an investment entity. Accrued interest payable on this note amounted to P600,000. Because of financial difficulties, the entity negotiated with the investment entity to exchange inventory of machine art to satisfy the debt. The inventory transferred is carried of P3,600,000. The estimated retail value of the inventory is P5,600,000. The perpetual inventory system is used. What amount of pretax gain on extinguishment should Star Company report as component of income from continuing operations in 2017?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:
- Chicken Wings Inc. incurred the following expenditures relating to its biological assets during the current year:Commissions to brokers, P5,500; Transportation costs to the market, P3,850; Levies by commodity exchange, P1,650; Transfer taxes and duties, P2,750; Advertising costs, P1,100What total amount shall be classified as costs to sell in accordance with IAS 41 Agriculture?Basketball Co. wholly owns Volleyball Co. During the year, Basketball purchased inventory from Volleyball. Volleyball has marked-up the goods at 20% above cost. How should the group compute for the consolidated cost of sales? * A. Cost of sales of Basketball plus cost of sales of Volleyball minus intercompany sales B. Cost of sales of Basketball plus cost of sales of Volleyball minus intercompany sales minus unrealized profit in ending inventory and plus realized profit in beginning inventorY C. Cost of sales of Basketball plus cost of sales of Volleyball minus intercompany sales plus unrealized profit in ending inventory and minus realized profit in beginning inventory D. Cost of sales of Basketball plus cost of sales of VolleyballOn the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation -80,000 -50,000 Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable 110,000 30,000 Bonds payable 95,000 40,000 Common stock 200,000 40,000 Retained earnings 205,000 120,000 Total Liabilities and Equity 610,000 230,000 What amount will be reported as total stockholder’s equity in the consolidated balance sheet prepared immediately after the business combination? Group of answer choices 445,000 550,000 205,000…