Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

R, J and L enter into a joint arrangement classified as joint operations. L is the appointed manger of the operations. The transactions of the

R, J and L enter into a joint arrangement classified as joint operations. L is the appointed manger of the operations. The transactions of the business for 2020 are as follows:

1.R contributes inventory costing P100,000 and paid P20,000 for the freight to deliver the goods to L.

2.J contributes cash amounting to P175,000.

3.L purchase merchandise amounting to P125,000 using the cashcontributed by J.

4.Merchandise costing P220,000 were sold by L for P950,000 on account.

5.An operating expenses of P230,000 was paid by L, of which P180,000 came from his own fund.

6.Collected the receivables in full.

7.Lis to be given a bonus of 10% of profits before deducting the profits plus a salary of P20,000.

Any remaining profits will be divided equally among the operators.

8.Any remaining inventory will be taken by R.

Journal entries upon termination of the joint arrangement, assuming

1.No separate records will be maintained by the operators

2.A separate records will be maintained by the operators

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles Volume I

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

16th Canadian edition

978-1260305821

More Books

Students also viewed these Accounting questions

Question

Solve each equation by completing the square. x 2 + 7x - 1 = 0

Answered: 1 week ago

Question

Explain limitations on confidentiality inherent in group therapy.

Answered: 1 week ago