Answer the following questions

5 points

Q1

Assume that A Company and B Company each invested $(your student Number) for a 50% interest in an unincorporated joint venture on January 2, 2020. AB achieved net profit 15% of your student number and paid cash dividends 4% of your student number

Required:

Record the journal entries in the books of the ventures A and B and compute the ending balance of investment in AB JV by using:

Equity method of accounting.

5 points

Q2

The following balances pertain to Ali and Kamal Limited Liability partnership:

Beginning capital balance of Ali = your student number

Beginning capital balance of Kamal = [4] * [your student number]

Suppose that the contract of the partnership shows the following facts

1- There is a 10% interest on the beginning capital of partners

2- The is a monthly salary of Ali $2000

3- There is a 20% bonus of Kamal of income after the bonus.

4- The remainder is divided based on the balances of beginning capital

Required:

1- Record the journal and closing entries?

2- What are the balances of ending capital?

5 points

Q3

Summarize the accounting treatment of the investment in the voting common stocks (theoretical discussion).