A. Romeo and Juliet join in an arrangement for the sale of football souvenirs. Partners agree to the following:

• Romeo shall be allowed a commission of 20% on net purchases made by him;
• Each member shall be allowed a 25% commission on his own sales; and
• Any remaining profit shall be shared equally.

Joint operation transactions follow:

	Romeo	Juliet
Cash purchases	950	-
Expenses paid	-	150
Sales (each keeps his receipt)	800	600

1. The amount due to (from) joint operators:

2.The joint operation profit (loss) is:

B.

Brand Constructions began operation in 20x8. Construction activities for the first year is shown below. All contract are with different customers, and any work remaining at December 31, 20x8 is expected to be completed in 20x9. Brand uses the cost-to-cost percentage of completion in accounting for its projects.

Project	Contract price	Billings to date	Collections to date	Actual costs to date	Additional cost to complete
One	560,000	360,000	340,000	450,000	130,000
Two	670,000	220,000	210,000	126,000	504,000
Three	520,000	500,000	440,000	330,000
Totals	1,750,000	1,080,000	990,000	906,000	634,000

1. Assume that Branch uses the cost recovery method instead, calculate the aggregate net profit recognized in the 20x8 income statement for these projects.

2. Calculate the amount of current liability recognized in the 20x8 balance sheet