Kara and Mia formed a joint arrangement to acquire and sell a special type of merchandise. Kara is to manage the joint arrangement and to furnish the capital. The joint operations are to share equally any gain or loss on the joint operations. On April 1,2020, Mia sent Kara P10,000 cash, which was all used to purchase merchandise, Kara paid freight of P240 on the merchandise purchased. On April 27, one half of the merchandise was sold for P7,200 cash. Kara paid the cost of delivering merchandise to customers which amounted to P260. No further transactions occurred until the end of the month. The profit(loss) of the joint arrangement for the month of April,2020 is:
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Kara and Mia formed a joint arrangement to acquire and sell a special type of merchandise. Kara is to manage the joint arrangement and to furnish the capital. The joint operations are to share equally any gain or loss on the joint operations. On April 1,2020, Mia sent Kara P10,000 cash, which was all used to purchase merchandise, Kara paid freight of P240 on the merchandise purchased. On April 27, one half of the merchandise was sold for P7,200 cash. Kara paid the cost of delivering merchandise to customers which amounted to P260. No further transactions occurred until the end of the month. The
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- Red and Blue formed a joint venture to acquire and sell a special type of merchandise. Red is to manage the venture and to furnish the capital. The participants are to share equally any gain or loss on the joint venture. On April 1, 2022, Blue sent Red P10,000 cash, which was all used to purchase merchandise. On April 27, one half of the merchandise was sold for P7,200 cash. Red paid the cost of delivering merchandise to customers which amounted to P260. No further transactions occurred until the end of the month. The profit (loss) of the venture for the month of April: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:Anna and Ben formed a partnership. Anna contributed cash of P786,000 and office equipment costing P378,000. The equipment had been used in her sole proprietorship and had been 70% depreciated. The agreed value of the equipment is P104,000. Anna also has a note payable of P84,000 that will be assumed by the partnership. Ben contributed only the merchandise inventory from his sole proprietorship carried in the books at P650,000 but with fair value of P630,000. The partnership agreed on a profit and loss ratio of 50% each. How much is Anna's capital immediately after the partnership formation?
- Cathy, Tim and Lucas started a partnership online retailing business as from 1 January 2022. The agreement set out the following basic arrangements: Cathy to contribute $12 000 in account receivables and inventory valued at $8 000. She also contributed computers valued at $10 000 on her record. The fair value of these computers was $2 000 lower than Cathy's booking record on 1 January 2022. Tim to contribute $26 000 in cash and office furniture, which originally cost $35 500. Based on Tim's accounting record, the accumulated depreciation of office furniture showed $15 000. The bank loan associated with office furniture is $10 000. Lucas to contribute inventory valued at $24 750 and to act as managing partner at a salary of $20 000 per year. Interest to be allowed at 5% p. a. on the capital contribution by the partners. Residual profits or losses to be shared equally among three partners. Ignore GST Required 1) Prepare the journal entries necessary to open the records of the…On July 1, 2022, Mr. A and Mr. B agreed to form a partnership business engaged in buying and selling organic rice sourced from South Cotabato to be sold in Davao City. Their contributions included the following: Mr. A Mr. B Cash 250,000.00 380,000.00 Organic rice 180,000.00 Delivery van 1,000,000.00 As agreed, Mr. A's organic rice was revalued at P160,000. The fair value of Mr. B's delivery van is P950,000 on July 1, 2022, and has a mortgage loan balance of P250,000 from the Toyota GenSan branch. Required: 1. Assume the mortgage on the delivery van is treated as Mr. Bs personal obligation: a. Prepare two simple journal entries recording their respective contributions. b. Prepare a Statement of Financial Position as of the date their partnership was formed.On July 1, 2022, Mr. A and Mr. B agreed to form a partnership business engaged in buying and selling organic rice sourced from South Cotabato to be sold in Davao City. Their contributions included the following: Mr. A Mr. B Cash 250,000.00 380,000.00 Organic rice 180,000.00 Delivery van 1,000,000.00 As agreed, Mr. A's organic rice was revalued at P160,000. The fair value of Mr. B's delivery van is P950,000 on July 1, 2022, and has a mortgage loan balance of P250,000 from the Toyota GenSan branch. 2. Assume the mortgage on the delivery van is assumed by the partnership: a. Prepare two simple journal entries recording their respective contributions. b. Prepare a Statement of Financial Position as of the date their partnership was formed.
- Assume that Kwek-kwek Corp. participates in a customer loyalty program operated by Suka Corporation where it grants 1 point for every P200 spent on its oil products. Accumulated points by customers from Kwek-kwek Corp. may be used to settle part or in full any merchandise purchased from Suka Corporation. Kwek-kwek Corp. pays Suka P1 for each point redeemed. In 2021, total sales of the Kwek-kwek Corp. amounted to P10,000,000. Only 45% of the 100% expected total points granted were redeemed by the customers from Suka Corporation which was used to fully settle the purchase of goods during the year. How much is the expense to be recognized by Kwek-kwek in 2021 related to the transaction?Washington and Jacobs formed a partnership on March 15, 2018. The partners agreed to contribute equal amounts of capital. Washington contributed her sole proprietorship’s assets and liabilities (credit balances in parentheses) as follows: Washington’s Business Book Value Current Market Value Accounts Receivable $ 12,200 $ 10,500 Merchandise Inventory 42,000 35,000 Prepaid Expenses 3,500 2,800 Store Equipment, Net 42,000 23,000 Accounts Payable (26,000) (26,000) On March 15, Jacobs contributed cash in an amount equal to the current market value of Washington’s partnership capital. The partners decided that Washington will earn 60% of partnership profits because she will manage the business. Jacobs agreed to accept 40% of the profits. During the period ended December 31, the partnership earned net income of $72,000. Washington’s withdrawals were $36,000, and Jacobs’s withdrawals totaled $26,000. Requirements Journalize the…In January 2018, Nick Marasigan and Dems Asacta agreed to purchase and sell chocolate candies. Marasigan contributed P2,400,000 in cash to the business. Asacta contributed the building and equipment, valued at P 2,200,000 and P 1,400,000, respectively. The partnership had profits of P480,000 during 2018 but was less successful during 2019, when profit was only P400,000. Required:1. Prepare the journal entry to record the investment of both partners in the partnership.2. Determine the share of profit for each partner in 2018 and 2019 under each of the following conditions:a. The partners agreed to share profit equally.b. The partners failed to agree on a profit-sharing arrangement.c. The partners agreed to share profit according to the ratio of their original investments.d. The partners agreed to share profits by allowing interest of 10% on their original investments and dividing the remainder equally.e. The partners agreed to share profits by allowing salaries of P400,000 for Marasigan…
- Rodriguez and Ying started a partnership on July 1, 2019. Rodriguez contributes P4100 cash, furniture with a current market value of P47,000, outstanding accounts payable of P16,000 and computer equipment originally costing P48,000 with recorded accumulated depreciation of P28,000, but with a current market value of P18,000. a. Rodriguez, Capital will be credited for b. Total asset investment of Rodriguez amounts toOn July 1, 2020, Agincourt Inc. made two sales. 1. It sold land having a fair value of $700,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,101,460. The land is carried on Agincourt’s books at a cost of $590,000. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $400,000 (interest payable annually). Agincourt Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest. Instructions Record the two journal entries that should be recorded by Agincourt Inc. for the sales transactions above that took place on July 1, 2020.Victoria, Wilda and Xenia are partners in a consultancy firm which commenced its operation on July 1, 2018. Victoria is the managing partner. As per agreement for sharing profits, the managing partner will receive a salary of P12,000 per month and the remaining profit will be shared by the partners equally. On December 31, 2018, the firm determined that its income was P 300,000. How much will Wilda receive as her share in the profit? A. P 76,000 B. P 96,000 C. P 52,000 D. P 84,000