Case 1: No separate records are maintaineda. Prepare the journal entries for transactions (a) to (f).b. Compute for the profit after management fee and bonus.c. Determine the cash settlements to the joint operators. Problem 1. (Accounting for Joint Operation Transactions)Small, Medium, and Large formed a joint operation. The following were the joint operation transactionsa Small transferred cash of P100,000 to Large, the appointed manager, representing Smalls contributionb. Medium contributed inventories worth P120,000cLarge contributed cash of P80,000d. Large purchased inventories worth P160,000 and paid freight of P20,000 using the cash contributionse Large made cash sales of P900,000Large paid expenses of P240,000 from the 10-cashOther informationAll inventories were sold except one-third from large's purchases. Large was charged for the cost of the unsold inventoryThe joint operators agreed on the following:Large is entitled to a management fee of P6,000 and a bonus of 15% of profit after management fee and bonusAny remaining profit or loss is divided equally.

It is given that Case 1: No separate records are maintained.

Answered: e journal entries for transactions (a)…

Business

Accounting

e journal entries for transactions (a) to (f). b. Compute for the profit after m

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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Question

Case 1: No separate records are maintained

a. Prepare the journal entries for transactions (a) to (f).
b. Compute for the profit after management fee and bonus.

c. Determine the cash settlements to the joint operators.

Problem 1. (Accounting for Joint Operation Transactions)
Small, Medium, and Large formed a joint operation. The following were the joint operation transactions
a Small transferred cash of P100,000 to Large, the appointed manager, representing Smalls contribution
b. Medium contributed inventories worth P120,000
cLarge contributed cash of P80,000
d. Large purchased inventories worth P160,000 and paid freight of P20,000 using the cash contributions
e Large made cash sales of P900,000
Large paid expenses of P240,000 from the 10-cash
Other information
All inventories were sold except one-third from large's purchases. Large was charged for the cost of the unsold inventory
The joint operators agreed on the following:
Large is entitled to a management fee of P6,000 and a bonus of 15% of profit after management fee and bonus
Any remaining profit or loss is divided equally.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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