Homework Help is Here – Start Your Trial Now!
Business
Accounting
How much is the net profit of the joint arrangement? D253 500

How much is the net profit of the joint arrangement? D253 500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
as that evant activitic trol of the arrangemer angement might include clauses on arbitration. These provisions may allow for bsence of unanimous consent among the parties that The existence of such provisions does not prevent the from being jointly controlled and, consequently, from being de the scope of IFRS 11, an entity accounts ccordance with relevant IFRSS, such or IFRS 9. ment. CHAPTER 6: JO0INT ARRANGEMENTS 16. Berlin and Rio are participants in a joint arrangement for the purchase through bidding and sales of surplus auto parts from La Casa. The winning bid price of P400,000 was paid equally by Berlin and Rio, constituting their investments in joint arrangement. They agreed that each record his own purchases, sales, and expenses in his own books and share profit and losses equally. After seven months, the arrangement was terminated, and the following data is available: Berlin Joint arrangement account Expenses paid Inventory taken Rio Company Company 175,000 15,000 18,000 155,000 7.500 5,500 How much is the net profit of the joint arrangement? P353,500 b. Р335,500 c. P355,300 d. P305,350 a.
Transcribed Image Text:as that evant activitic trol of the arrangemer angement might include clauses on arbitration. These provisions may allow for bsence of unanimous consent among the parties that The existence of such provisions does not prevent the from being jointly controlled and, consequently, from being de the scope of IFRS 11, an entity accounts ccordance with relevant IFRSS, such or IFRS 9. ment. CHAPTER 6: JO0INT ARRANGEMENTS 16. Berlin and Rio are participants in a joint arrangement for the purchase through bidding and sales of surplus auto parts from La Casa. The winning bid price of P400,000 was paid equally by Berlin and Rio, constituting their investments in joint arrangement. They agreed that each record his own purchases, sales, and expenses in his own books and share profit and losses equally. After seven months, the arrangement was terminated, and the following data is available: Berlin Joint arrangement account Expenses paid Inventory taken Rio Company Company 175,000 15,000 18,000 155,000 7.500 5,500 How much is the net profit of the joint arrangement? P353,500 b. Р335,500 c. P355,300 d. P305,350 a.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Consolidations
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.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS