BB, WW and FF agree to sell construction tools for a period of one month. BB agrees te the lawn of FF. FF will be paid P2,500 for cleaning up the lawn after the one-month sel BB, wW and FF decide that net income, if any will be allocated first by the P2,500 p commission on individual sales. The balance will be distributed 75% to BB and 25% to will complicate the matters and that all purchases and sales transactions will be out-c the individual. Sales to BB, WW and FF are to be at cost, except that the ending inver cost. All other sales are to be made at 100% mark-up on cost. The activity of the joint operation is as follows: a. BB construct the stand on the front of the lawn at a cost of P10,000; b. BB pays for P100,000 for various construction tools. FF pays P5,000 for per

BB, WW and FF agree to sell construction tools for a period of one month. BB agrees te the lawn of FF. FF will be paid P2,500 for cleaning up the lawn after the one-month sel BB, wW and FF decide that net income, if any will be allocated first by the P2,500 p commission on individual sales. The balance will be distributed 75% to BB and 25% to will complicate the matters and that all purchases and sales transactions will be out-c the individual. Sales to BB, WW and FF are to be at cost, except that the ending inver cost. All other sales are to be made at 100% mark-up on cost. The activity of the joint operation is as follows: a. BB construct the stand on the front of the lawn at a cost of P10,000; b. BB pays for P100,000 for various construction tools. FF pays P5,000 for per

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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