On January 1, 20x1 ABC entered into joint arrangement classified as a joint venture. ABC acquired 50% interest in the joint venture for a total cost of 500,000. In its statement of comprehensive income, the joint venture reported a net profit of 2,000,000 and other comprehensive income 500,000. On Sept 1 20x1 the venture declared cash dividends amounting to 200,000 to all stakeholders to be paid on January 20x2. How much is the balance of the investment in joint venture account of ABC as of Dec 31?

On January 1, 20x1 ABC entered into joint arrangement classified as a joint venture. ABC acquired 50% interest in the joint venture for a total cost of 500,000. In its statement of comprehensive income, the joint venture reported a net profit of 2,000,000 and other comprehensive income 500,000. On Sept 1 20x1 the venture declared cash dividends amounting to 200,000 to all stakeholders to be paid on January 20x2. How much is the balance of the investment in joint venture account of ABC as of Dec 31?

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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