A, B and C formed a joint operation for the sale of assorted fruits during the Christmas season. Their transactions during the two-month period are summarized below: Joint operation 8,500 Nov. 15 Cash sales-C 18 Cash sales-C Nov. 5 Merchandise-A 12 Merchandise-B 14 Freight-in-C Dec. 10 Purchases-C 20,400 7,000 4,200 1,210 200 30 Merchandise-B 3,500 Dec. 25 Unsold mdse. charged to A 540 22 Selling expenses C 550 The joint arrangement provided for the division of gains and losses among A, B and C in the ratio of 2:3:5. The joint operation is to close on December 31, 2008. What is the amount of cash that A will receive on final settlement?
A, B and C formed a joint operation for the sale of assorted fruits during the Christmas season. Their transactions during the two-month period are summarized below: Joint operation 8,500 Nov. 15 Cash sales-C 18 Cash sales-C Nov. 5 Merchandise-A 12 Merchandise-B 14 Freight-in-C Dec. 10 Purchases-C 20,400 7,000 4,200 1,210 200 30 Merchandise-B 3,500 Dec. 25 Unsold mdse. charged to A 540 22 Selling expenses C 550 The joint arrangement provided for the division of gains and losses among A, B and C in the ratio of 2:3:5. The joint operation is to close on December 31, 2008. What is the amount of cash that A will receive on final settlement?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the amount of cash that A will receive on final settlement?
a. 1,212
b. 9,280
c. 9,712
d. 8,500
Transcribed Image Text:A, B and C formed a joint operation for the sale of assorted fruits during the Christmas season. Their
transactions during the two-month period are summarized below:
Joint operation
8,500 Nov. 15 Cash sales-C
Nov. 5 Merchandise-A
20,400
12 Merchandise-B
7,000
18 Cash sales-C
4,200
14 Freight-in-C
Dec. 10 Purchases-C
200
30 Merchandise-B
1,210
3,500 Dec. 25 Unsold mdse. charged to A
540
22 Selling expenses-C
550
The joint arrangement provided for the division of gains and losses among A, B and C in the ratio of
2:3:5. The joint operation is to close on December 31, 2008.
What is the amount of cash that A will receive on final settlement?
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