Problem 1. (Accounting for Joint Operation Transactions) Small, Medium, and Large formed a joint operation. The following were the joint operation transactions: a. Small transferred cash of P100,000 to Large, the appointed manager, representing Small's contribution. b. Medium contributed inventories worth P120,000. c. Large contributed cash of P80,000 d. Large purchased inventories worth P160,000 and paid freight of P20,000 using the cash contributions. e. Large made cash sales of P900,000. f. Large paid expenses of P240,000 from the JO-cash. Other information: • All inventories were sold except one-third from large's purchases. Large was charged for the cost of the unsold inventory. • The joint operators agreed on the following: • Large is entitled to a management fee of P6,000 and a bonus of 15% of profit after management fee and bonus. • Any remaining profit or loss is divided equally.

Problem 1. (Accounting for Joint Operation Transactions) Small, Medium, and Large formed a joint operation. The following were the joint operation transactions: a. Small transferred cash of P100,000 to Large, the appointed manager, representing Small's contribution. b. Medium contributed inventories worth P120,000. c. Large contributed cash of P80,000 d. Large purchased inventories worth P160,000 and paid freight of P20,000 using the cash contributions. e. Large made cash sales of P900,000. f. Large paid expenses of P240,000 from the JO-cash. Other information: • All inventories were sold except one-third from large's purchases. Large was charged for the cost of the unsold inventory. • The joint operators agreed on the following: • Large is entitled to a management fee of P6,000 and a bonus of 15% of profit after management fee and bonus. • Any remaining profit or loss is divided equally.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 480 240 Expenses paid 800 Other income 40 The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally. On the cash settlement, how much should A received from B? Please provide a good accounting form for the solution. Thank you!
On January 1, 20x4, XX Company and YY Company signed an agreement to form a joint operation to manufacture a product called plasma. This product is used in the manufacturing of television. The following are transactions transpired in relation to joint operations for 20x4:a. To commence the operation, both operators contributed P252,000 in cash.b. Contributions of cash by the operations.c. Use of cash and loan to buy machinery & equipment costing P134,400 (cash paid, P84,000 and the balance on the loan account) and raw materials purchase on account costing P109,200.d. Labor incurrence amounting to P120,960 with P117,600 paid in cash.e. Loans from the bank, P100,800.f. Repayment of loan – machinery and equipment P16,800, raw materials amounting to P70,560, and other factory expenses, P218,400.g. Depreciation of machinery and equipment, P13,440.h. Transfer of materials, labor, and overhead to Work-in-Process; payroll, P120,960; Materials P80,640; Factory overhead – heat, light and…
On January 1, 20x4, XX Company and YY Company signed an agreement to form a joint operation to manufacture a product called plasma. This product is used in the manufacturing of television. The following are transactions transpired in relation to joint operations for 20x4:a. To commence the operation, both operators contributed P252,000 in cash.b. Contributions of cash by the operations.c. Use of cash and loan to buy machinery & equipment costing P134,400 (cash paid, P84,000 and the balance on the loan account) and raw materials purchase on account costing P109,200.d. Labor incurrence amounting to P120,960 with P117,600 paid in cash.e. Loans from the bank, P100,800.f. Repayment of loan – machinery and equipment P16,800, raw materials amounting to P70,560, and other factory expenses, P218,400.g. Depreciation of machinery and equipment, P13,440.h. Transfer of materials, labor, and overhead to Work-in-Process; payroll, P120,960; Materials P80,640; Factory overhead – heat, light and…
On January 1, 20x4, XX Company and YY Company signed an agreement to form a joint operation to manufacture a product called plasma. This product is used in the manufacturing of television. The following are transactions transpired in relation to joint operations for 20x4:a. To commence the operation, both operators contributed P252,000 in cash.b. Contributions of cash by the operations.c. Use of cash and loan to buy machinery & equipment costing P134,400 (cash paid, P84,000 and the balance on the loan account) and raw materials purchase on account costing P109,200.d. Labor incurrence amounting to P120,960 with P117,600 paid in cash.e. Loans from the bank, P100,800.f. Repayment of loan – machinery and equipment P16,800, raw materials amounting to P70,560, and other factory expenses, P218,400.g. Depreciation of machinery and equipment, P13,440.h. Transfer of materials, labor, and overhead to Work-in-Process; payroll, P120,960; Materials P80,640; Factory overhead – heat, light and…
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