7. On September 30, 2021, Remus, Șemus and Tuss agreed on a joint venture to sell their common stock shares of the Sagittarius Mines. Gains and losses are to be shared in proportion to the contributed shares. Gains and losses are to be shared in proportion to the contributed shares. Remus contributes 6,000 shares, which had cost him P42 a share. Semus gave 10,000 shares which had a cost of P58 each and Tuss 4,000 shares which had a cost of P62 per share. The par value of the shares was P50 and when the venture began market value was P40 per share. On October 20 he sold 4,500 shares for P44 a share and P3,000 expenses incurred. On November 1, Sagittarius Mines distributed a stock dividend of 20%. Tuss sold 5,000 shares, ex-right dividend, on November 5, for P25 a share. On November 15, Sagittarius mines paid a cash dividend of P1 per share. On November 22 he sold 6,000 shares for P28. On December 220, the remainder of the shares were sold for P35 per share. Tuss' expenses were P4,700. The 20,000 shares contributed to the venture should be valued at а. Р800,000 b. Р1,000,000 c. P1,080,000 d. P1,200,000 8. Assuming the venture is ended on December 31, 2021, the share of Remus in the loss of the venture would be c. P12,130 а. Р10,120 b. Р11,130 d. P12,130 9. If a distribution of proceeds is made on December 31, the share of Semus would amount to d. P385,300 a. P374,650 b. Р378,500 с. Р381,450
7. On September 30, 2021, Remus, Șemus and Tuss agreed on a joint venture to sell their common stock shares of the Sagittarius Mines. Gains and losses are to be shared in proportion to the contributed shares. Gains and losses are to be shared in proportion to the contributed shares. Remus contributes 6,000 shares, which had cost him P42 a share. Semus gave 10,000 shares which had a cost of P58 each and Tuss 4,000 shares which had a cost of P62 per share. The par value of the shares was P50 and when the venture began market value was P40 per share. On October 20 he sold 4,500 shares for P44 a share and P3,000 expenses incurred. On November 1, Sagittarius Mines distributed a stock dividend of 20%. Tuss sold 5,000 shares, ex-right dividend, on November 5, for P25 a share. On November 15, Sagittarius mines paid a cash dividend of P1 per share. On November 22 he sold 6,000 shares for P28. On December 220, the remainder of the shares were sold for P35 per share. Tuss' expenses were P4,700. The 20,000 shares contributed to the venture should be valued at а. Р800,000 b. Р1,000,000 c. P1,080,000 d. P1,200,000 8. Assuming the venture is ended on December 31, 2021, the share of Remus in the loss of the venture would be c. P12,130 а. Р10,120 b. Р11,130 d. P12,130 9. If a distribution of proceeds is made on December 31, the share of Semus would amount to d. P385,300 a. P374,650 b. Р378,500 с. Р381,450
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Transcribed Image Text:7. On September 30, 2021, Remus, Semus and Tuss agreed on a joint venture to sell their common stock shares of
the Sagittarius Mines. Gains and losses are to be shared in proportion to the contributed shares. Gains and
losses are to be shared in proportion to the contributed shares.
Remus contributes 6,000 shares, which had cost him P42 a share. Semus gave 10,000 shares which had a cost of
P58 each and Tuss 4,000 shares which had a cost of P62 per share.
The par value of the shares was P50 and when the venture began market value was P40 per share.
On October 20 he sold 4,500 shares for P44 a share and P3,000 expenses incurred. On November 1, Sagittarius
Mines distributed a stock dividend of 20%. Tuss sold 5,000 shares, ex-right dividend, on November 5, for P25 a
share. On November 15, Sagittarius mines paid a cash dividend of P1 per share. On November 22 he sold 6,000
shares for P28. On December 220, the remainder of the shares were sold for P35 per share. Tuss' expenses
were P4,700.
The 20,000 shares contributed to the venture should be valued at
а. Р800,000
b. P1,000,000
c. P1,080,000
d. P1,200,000
8. Assuming the venture is ended on December 31, 2021, the share of Remus in the loss of the venture would be
а. Р10,120
b. Р11,130
с. Р12,130
d. P12,130
9. If a distribution of proceeds is made on December 31, the share of Semus would amount to
d. P385,300
с. Р381,450
10. Tuss' loss on the disposition on his investment in Sagittarius is
с. Р105,420
а.
P374,650
b. Р378,500
а.
Р95,420
b. P5,140
d. P120,140
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education