ABC, DEF, and GHI formed a joint arrangement to bankroll a series of cultural shows for the Philippine Centennial celebration. The following were agreed upon: ➤ ABC and DEF agreed to contribute cash and GHI was to manage the affairs of the joint arrangement. ➤ GHI was to receive a bonus of 25% of the net income bonus, ABC and DEF were to be allowed interest on their capital contributions at 6% per annum, and any remainder was to be divided equally among the three partners. After a year, the joint arrangement was terminated and the following information was provided: used to purchas a. original capital contributions tickets, were P3,630,000 and P4,950,000, respectively, from ABC and DEF: b. GHI sold tickets worth a total of P13,200,000; and GHI paid expenses of P3,798,300 out of joint arrangement funds. Compute for the share from the net income of GHI

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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ABC, DEF, and GHI formed a joint arrangement to bankroll a series of cultural shows for
the Philippine Centennial celebration. The following were agreed upon:
➤ ABC and DEF agreed to contribute cash and GHI was to manage the affairs of the
joint arrangement.
➤ GHI was to receive a bonus of 25% of the net income bonus, ABC and DEF were
to be allowed interest on their capital contributions at 6% per annum, and any
remainder was to be divided equally among the three partners.
After a year, the joint arrangement was terminated and the following information was
provided:
a. original capital contributions used to purchase tickets, were P3,630,000 and
used to
P4,950,000, respectively. from ABC and DEF:
b. GHI sold tickets worth a total of P13,200,000; and GHI paid expenses of
P3,798,300 out of joint arrangement funds.
Compute for the share from the net income of GHI
Transcribed Image Text:ABC, DEF, and GHI formed a joint arrangement to bankroll a series of cultural shows for the Philippine Centennial celebration. The following were agreed upon: ➤ ABC and DEF agreed to contribute cash and GHI was to manage the affairs of the joint arrangement. ➤ GHI was to receive a bonus of 25% of the net income bonus, ABC and DEF were to be allowed interest on their capital contributions at 6% per annum, and any remainder was to be divided equally among the three partners. After a year, the joint arrangement was terminated and the following information was provided: a. original capital contributions used to purchase tickets, were P3,630,000 and used to P4,950,000, respectively. from ABC and DEF: b. GHI sold tickets worth a total of P13,200,000; and GHI paid expenses of P3,798,300 out of joint arrangement funds. Compute for the share from the net income of GHI
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