49. A and B cooperate in a joint venture for the sale of football souvenirs in a certain place. Both partners have agreed to the following (1) A will be given a 10% commission on net purchases made by him. (2) each partner will be given a 25% commission on his own sales, and (3). any remaining profits must be divided equally. The joint-venture transaction is as follows. On December 30 A makes a cash purchase of $95 Stairs January 1 B pays company fees of $15 On January 1 Sales are as follows: A for $80; B $60 (each partner maintains its own cash receipts book). On January 6, B returned the unsold merchandise and received $25 cash for the return. On January 6, both partners make a cash settlement. There are no separate books for this joint venture What journal entries should be made in
49. A and B cooperate in a joint venture for the sale of football souvenirs in a certain place. Both partners have agreed to the following (1) A will be given a 10% commission on net purchases made by him. (2) each partner will be given a 25% commission on his own sales, and (3). any remaining profits must be divided equally. The joint-venture transaction is as follows. On December 30 A makes a cash purchase of $95 Stairs January 1 B pays company fees of $15 On January 1 Sales are as follows: A for $80; B $60 (each partner maintains its own cash receipts book). On January 6, B returned the unsold merchandise and received $25 cash for the return. On January 6, both partners make a cash settlement. There are no separate books for this joint venture What journal entries should be made in
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:49. A and B cooperate in a joint venture for the sale of football souvenirs in a certain place.
Both partners have agreed to the following
(1) A will be given a 10% commission on net purchases made by him. (2) each partner will
be given a 25% commission on his own sales, and (3). any remaining profits must be divided
equally The joint-venture transaction is as follows
On December 30 A makes a cash purchase of $95
Stairs January 1B pays company fees of $15
On January 1 Sales are as follows: A for $80; B S60 (each partner maintains its own cash
receipts book).
On January 6, B returned the unsold merchandise and received $25 cash for the return.
On January 6, both partners make a cash settlement.
There are no separate books for this joint venture. What journal entries should be made in
each partner's books?
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