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ilable: account, P1,500,000; Expenses paid, P100,000 d, what is the balance of the Investment in Joint mber 31, 20x1? d, what is the balance of the Investment in Joint

ilable: account, P1,500,000; Expenses paid, P100,000 d, what is the balance of the Investment in Joint mber 31, 20x1? d, what is the balance of the Investment in Joint

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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X Company and Y Company formed a joint venture, XY Company, in 20x1 to sell particular merchandise. Cash investments by the venturers X Company (65%) P1,200,000; Y Company (35%) P800,000. The following information is available: Purchases of merchandise on account, P1,500,000; Expenses paid, P100,000; Sales on account (130% of cost), P1,508,000. REQUIRED: 11. What is the net income? 12. Using the equity method, what is the balance of the Investment in Joint Venture account in the books of Y Company on December 31, 20x1? 13. Using the equity method, what is the balance of the Investment in Joint Venture account in the books of X Company on December 31, 20x1?
Transcribed Image Text:X Company and Y Company formed a joint venture, XY Company, in 20x1 to sell particular merchandise. Cash investments by the venturers X Company (65%) P1,200,000; Y Company (35%) P800,000. The following information is available: Purchases of merchandise on account, P1,500,000; Expenses paid, P100,000; Sales on account (130% of cost), P1,508,000. REQUIRED: 11. What is the net income? 12. Using the equity method, what is the balance of the Investment in Joint Venture account in the books of Y Company on December 31, 20x1? 13. Using the equity method, what is the balance of the Investment in Joint Venture account in the books of X Company on December 31, 20x1?
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