May 20, one half of the merchandise was sold for P3 Ccount on May 30, 2021 would show a balance of:
May 20, one half of the merchandise was sold for P3 Ccount on May 30, 2021 would show a balance of:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![On May 1, 2021, AAA and BBB formed a joint operation to acquire and sell a special type of merchandise. The contractual
arrangements provide that AAA is to manage the joint operation for a fee and that gain and losses are to be divided
equally. On May 1, 2021, BBB invests cash of P52,000, which P50,000 was used to purchase merchandise. AAA incurs
expenses amounting to P2,500. On May 20, one half of the merchandise was sold for P36,000 cash. In the books of BBB,
the Investment in Joint Operation account on May 30, 2021 would show a balance of:
54,250
45.750](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffa9a816e-9f80-4530-9977-2ff52df7669e%2Fd6b8a9be-b75c-4908-b1e0-2ed05474cf01%2Fwseqv6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On May 1, 2021, AAA and BBB formed a joint operation to acquire and sell a special type of merchandise. The contractual
arrangements provide that AAA is to manage the joint operation for a fee and that gain and losses are to be divided
equally. On May 1, 2021, BBB invests cash of P52,000, which P50,000 was used to purchase merchandise. AAA incurs
expenses amounting to P2,500. On May 20, one half of the merchandise was sold for P36,000 cash. In the books of BBB,
the Investment in Joint Operation account on May 30, 2021 would show a balance of:
54,250
45.750
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