Fasy, Average and Difficult formed a joint operation. The following were their contributions: Easy, P100; Average, P120; and Difficult, P80. On completion of the joint operation, the joint operators' books show the following balances: Easy Average Difficult Personal accounts (before closing) 100 Cr. 120 Cr. 580 Dr. Expenses (paid from JO cash) Unsold inventory taken 240 60 The contractual arrangement stipulates that Difficult, the appointed manager, is entitled to a salary of P6 and a bonus of 15% of profit after salary and bonus. Any balance of profit or loss is shared equally. 2. How much were the sales of the joint operation? 3. In the settlement of the joint operation, how much total cas did Difficult, the holder of JO-cash, pay to Easy and Average?
Fasy, Average and Difficult formed a joint operation. The following were their contributions: Easy, P100; Average, P120; and Difficult, P80. On completion of the joint operation, the joint operators' books show the following balances: Easy Average Difficult Personal accounts (before closing) 100 Cr. 120 Cr. 580 Dr. Expenses (paid from JO cash) Unsold inventory taken 240 60 The contractual arrangement stipulates that Difficult, the appointed manager, is entitled to a salary of P6 and a bonus of 15% of profit after salary and bonus. Any balance of profit or loss is shared equally. 2. How much were the sales of the joint operation? 3. In the settlement of the joint operation, how much total cas did Difficult, the holder of JO-cash, pay to Easy and Average?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Choices are:
2.)
A. 900
B. 880
C. 860
D. 920
3. )
A. 460
B. 380
C. 220
D. 240
Transcribed Image Text:Use the following information for the next two questions:
Easy, Average and Difficult formed a joint operation. The
following were their contributions: Easy, P100; Average, P120; and
Difficult, P80. On completion of the joint operation, the joint
operators' books show the following balances:
Difficult
580 Dr.
Easy
Average
Personal accounts (before closing)
100 Cr.
120 Cr.
Expenses (paid from JO cash)
Unsold inventory taken
240
60
The contractual arrangement stipulates that Difficult, the
appointed manager, is entitled to a salary of P6 and a bonus of
15% of profit after salary and bonus. Any balance of profit or loss
is shared equally.
2. How much were the sales of the joint operation?
3. In the settlement of the joint operation, how much total cash
did Difficult, the holder of JO-cash, pay to Easy and Average?
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