Bang, Bing and Bong formed a joint venture in 2010 to sell computers. They assigned Bing as the manager of the joint venture. They agreed to divide profits equally. They terminated the venture on December 21, 2011 with unsold merchandise. On this date, Bing’s trial balance shows the following account balances before profit distribution: Debits: Joint Venture Cash P90,000, Joint Venture P23,500, Bong, Capital P15,600. Credit: Bang, Capital P32,500. Bing received P 5,300 as her share in the joint venture profit. Bing agreed to be charged for the unsold merchandise as of December 31, 2010. What is the amount due to Bang upon final settlement?
Bang, Bing and Bong formed a joint venture in 2010 to sell computers. They assigned Bing as the manager of the joint venture. They agreed to divide profits equally. They terminated the venture on December 21, 2011 with unsold merchandise. On this date, Bing’s trial balance shows the following account balances before profit distribution: Debits: Joint Venture Cash P90,000, Joint Venture P23,500, Bong, Capital P15,600. Credit: Bang, Capital P32,500. Bing received P 5,300 as her share in the joint venture profit. Bing agreed to be charged for the unsold merchandise as of December 31, 2010. What is the amount due to Bang upon final settlement?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Bang, Bing and Bong formed a joint venture in 2010 to sell computers. They assigned Bing as the manager of the joint venture. They agreed to divide profits equally. They terminated the venture on December 21, 2011 with unsold merchandise.
On this date, Bing’s
Debits: Joint Venture Cash P90,000, Joint Venture P23,500, Bong, Capital P15,600. Credit: Bang, Capital P32,500.
Bing received P 5,300 as her share in the joint venture profit. Bing agreed to be charged for the unsold merchandise as of December 31, 2010.
What is the amount due to Bang upon final settlement?
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
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