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?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 55P

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Cersei and Jaime are joint operators who agreed to share profits and losses equally. The parties appointed Jaime 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: 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?
Cersei and Jaime are joint operators who agreed to share profits and losses equally. The parties appointed Jaime 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? Cersei and Jaime are joint operators who agreed to share profits and losses equally. The parties appointed Jaime as the manager of the joint operation. The joint operation's transactions during the year are as follows: a. Cersei invested…
Use the following information for the next two questions: A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 960 720 Expenses paid 800 Other income 40 The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally. How much is the profit (loss) of the joint operation? _____________________ On the cash settlement between the joint operators a. A pays B ₱368 b. B pays A ₱368 c. A pays B ₱428 d. B pays A ₱428
Use the following information for the next two questions: A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 480 240 Expenses paid 800 Other income 40 The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally. 23. How much is the profit (loss) of the joint operation? c. 840 d. (840) a. 760 b. (760) 24. On the cash settlement between the joint operators, a. A pays B P368. b. B pays A P368. c. A pays B P428. d. B pays A P428.
A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 480 240 Expenses paid 800 Other income 40 The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally. On the cash settlement, how much should A received from B? Please provide a good accounting form for the solution. Thank you!
A and B formed a joint operation. The following were the transactions during the year: A B Total Purchases 400 320 Total Sales 480 240 Expenses paid 800 Other Income 40 The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally. On the cash settlement, how much should A received from B?
A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 200 160 Total sales 240 120 Expenses paid 400 Other income 20 The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally. Compute the profit or loss of the joint operation.
The partnership of Avery and Kirk was formed on July 1, when George Avery and Dinah Kirk agreed to invest equal amounts and to share profits and losses equally. The investment by Avery consist of $30,000 cash and an inventory of merchandise valued at $56,000. Kirk also is to contribute a total of $86,000. However, it is agreed that her contribution will consist of the transfer of both assets of her business and its liabilities (listed as follows). A list of the agreed values of the various items as well as their carrying values on Kirk’s records follows. Kirk also contributes enough cash to bring her capital account to $86,000 Investment by Kirk Balances Agreed on Kirk’s records Value Accounts receivables $81,680 $79,600 Inventory…
On January 1, Mark and Rodiel formed a partnership with the former contributing P180,000 cash and the latter contributing machineries (with carrying value of P64,000 and fair value of P52,000) and inventory (with cost FP24,000 and fair value of P30,000). They agreed to value machineries and inventory at P48,000 and P32,000, respectively. During the year, Rodiel made an additional investment of P20,000 on May 1 and P15,000 on July 1. On October 1, Rodiel permanently withdrew P25,000. Mark had no additional investment nor withdrawals during the year. The share of Mark in the P100,000 net income of the partnership for the year using average capital as the basis would be closest to
L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $8,000. The capital balances of each partner are $96,000 and $40,000, respectively, prior to the revaluation.a. Provide the journal entry for the asset revaluation.b. Provide the journal entry for Ortiz’s admission under the following independent situations:1. Ortiz purchased a 20% interest for $20,000.2. Ortiz purchased a 30% interest for $60,000.
Use the following information for the next two questions: A, B, and C formed a joint operation. The joint operators shall make initial contributions P10 each. Profit and loss shall be divided equally. The following data relate to the joint operation's transactions: A B 8 Cr. Joint operation (before closing) Expenses paid from JO cash Value of inventory taken 10 Cr. 12 Cr. 2 3 6 4 21. How much were the sales of the joint operation? c. 40 a. 70 b. 60 d. 90 22. How much was A's share in the settlement? a. 25 receipt b. 20 тесeipt с. 25 раyment d. 20 payment
2. The parthership agreement of Zuniga, Armenta & Galang provided for the year-end allocation of profit in the following order: First, Zuniga is to receive 10% of profit up to P200,000 and 20% over P200,000. Second, Armenta and Galang each are to receive 5% of the remaining profit over P300,000. The balance of profit is to be allocated equally among the three partners. The partnership's 2019 profit was P500,000 before any allocations to partners. What amount should be allocated to Zuniga?