4. On January 1, 2015, PHANTOM LANCER INC., RIKI CORP and NAGA SIREN CORP. establish a joint undertaking to manufacture a product they agree to share equally. Each will contribute P200,000 into the operation; PHANTOM LANCER and RIKI are to contribute cash while NAGA SIREN is to contribute equipment with a cost of P185,000. The equipment has a remaining life of 10 years when contributed. a. Determine the amount of NAGA SIREN will show the Equipment in JO account in its balance sheet at January 1, 2015. A. B. P61,667 P50,000 A. B. C. D. b. Determine the amount of NAGA SIREN will show the Equipment in JO account in its balance sheet at December 31, 2015. P45,000 P55,000 P66,667 P65,000 C. D. P60,000 P58,800

4. On January 1, 2015, PHANTOM LANCER INC., RIKI CORP and NAGA SIREN CORP. establish a joint undertaking to manufacture a product they agree to share equally. Each will contribute P200,000 into the operation; PHANTOM LANCER and RIKI are to contribute cash while NAGA SIREN is to contribute equipment with a cost of P185,000. The equipment has a remaining life of 10 years when contributed. a. Determine the amount of NAGA SIREN will show the Equipment in JO account in its balance sheet at January 1, 2015. A. B. P61,667 P50,000 A. B. C. D. b. Determine the amount of NAGA SIREN will show the Equipment in JO account in its balance sheet at December 31, 2015. P45,000 P55,000 P66,667 P65,000 C. D. P60,000 P58,800

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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Question

C.
4. On January 1, 2015, PHANTOM LANCER INC., RIKI CORP and NAGA SIREN CORP. establish a
joint undertaking to manufacture a product they agree to share equally. Each will
contribute P200,000 into the operation; PHANTOM LANCER and RIKI are to contribute cash
while NAGA SIREN is to contribute equipment with a cost of P185,000. The equipment has
a remaining life of 10 years when contributed.
a. Determine the amount of NAGA SIREN will show the Equipment in JO account in its
balance sheet at January 1, 2015.
A.
B.
P61,667
P50,000
A.
B.
b. Determine the amount of NAGA SIREN will show the Equipment in JO account in its
balance sheet at December 31, 2015.
C. P66,667
D. P65,000
P45,000
P55,000
C. P60,000
D. P58,800
Determine the net amount PHANTOM LANCER or RIKI CORP. will show the Equipment in JO
account in its balance sheet at December 31, 2015.
A. P45,000
B.
P55,500
C.
D.
P60,000
P58,500

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