Cersei and Jaime are joint operators who agreed to share profits and losses equally. The parties appointedJaime as the manager of the joint operation. The joint operation's transactions during the year are as follows:a. Cersei invested inventory costing P301,497.b. Jaime invested cash of P350,393 to the joint operation.c. Jaime acquired additional inventory costing P129,564 using the joint operation's funds.d. Jaime sells inventory costing P300,000 for P924,398 cash.e. Jaime settles expenses of P250,984 using the joint operation's funds.No separate books are maintained for the joint operation.REQUIRED:1. How much is the profit of the joint operation?2. How much is Jaime's share in the profit?3. How much is Cersei's share in the profit?4. How much is the unsold inventory?5. Assuming Cersei takes the unsold inventory, how much will Cersei receive as cash settlement if thejoint operation will be liquidated at the end of the year?6. Assuming Cersei takes the unsold inventory, how much will Jaime receive as cash settlement if thejoint operation will be liquidated at the end of the year?

A joint operation seems to be a type of joint partnership in which the parties that share ownership…

1. How much is the profit of the joint operation? 2. How much is Jaime's share in the profit? 3. How much is Cersei's share in the profit? 4. How much is the unsold inventory? 5. Assuming Cersei takes the unsold inventory, how much will Cersei receive as cash settlement if the joint operation will be liquidated at the end of the year? 6. Assuming Cersei takes the unsold inventory, how much will Jaime receive as cash settlement if the joint operation will be liquidated at the end of the year?

1. How much is the profit of the joint operation? 2. How much is Jaime's share in the profit? 3. How much is Cersei's share in the profit? 4. How much is the unsold inventory? 5. Assuming Cersei takes the unsold inventory, how much will Cersei receive as cash settlement if the joint operation will be liquidated at the end of the year? 6. Assuming Cersei takes the unsold inventory, how much will Jaime receive as cash settlement if the joint operation will be liquidated at the end of the year?

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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