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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?

FINANCIAL ACCOUNTING
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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Choices are: 

2.) 

A. 900

B. 880

C. 860

D. 920

3. )

A. 460

B. 380

C. 220

D. 240 

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?
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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