On July 1, 2021, A, B, and C formed a joint venture for the sale of merchandise. A was designated as the n=managing participant. Profits or losses are to be divided as follows: A – 50%; B-25% and C-25%. On October 1, 2021, though the joint venture is still uncompleted, the participant agreed to recognize profit or loss on the venture to date. The cost of inventory on hand is determined at P25,000. The joint venture account has a debit balance of P15,000 before distribution of profit and loss. No separate set of books is maintained for the joint venture and the participants record in their individual books all venture transactions. a. The joint venture profit (loss) on October 1, 2021 is a. P10,000 Using the sme information above and the joint venture account has a credit balance of P30,000, the joint venture profit (loss) is a. (P55,000) b. P25,000 c. (P15,000) d. None b. P55,000 с. (Р5,000) d. P5,000

On July 1, 2021, A, B, and C formed a joint venture for the sale of merchandise. A was designated as the n=managing participant. Profits or losses are to be divided as follows: A – 50%; B-25% and C-25%. On October 1, 2021, though the joint venture is still uncompleted, the participant agreed to recognize profit or loss on the venture to date. The cost of inventory on hand is determined at P25,000. The joint venture account has a debit balance of P15,000 before distribution of profit and loss. No separate set of books is maintained for the joint venture and the participants record in their individual books all venture transactions. a. The joint venture profit (loss) on October 1, 2021 is a. P10,000 Using the sme information above and the joint venture account has a credit balance of P30,000, the joint venture profit (loss) is a. (P55,000) b. P25,000 c. (P15,000) d. None b. P55,000 с. (Р5,000) d. P5,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Scarlet Company owns 80% of Tamara Corp.'s common stock. During October 2019 Tamara sold merchandise to Scarlet for 125,000. At December 31, 2019, one-half of the merchandise remained in Scarlet inventory. For 2019, gross profit percentages were 30% for Scarlet and 40% for Tamara. The amount of unrealized intercompany profit in ending inventory at December 31, 2019 that should be eliminated in consolidation is: O 20,000 O 18,750 O 25,000 O 50,000
During 2018, the following events occurred: 1. Addilional inventory was acquired during he year at a cost of P 354,000 and recprded using the perpetual inventory system. As of December 31, 2018, the partnership owedn70,800 to its suppliers. 2 In order to facilitate startup operations, the partnership borTowed P 500,000 from a bank on May 1, 2018. The borowing was evidenced by a 9% interest bearing note and interest is payable semi-annually. Interest payments due for 2018 are accordingly paid by the partnership. 3. Sales on account amounted to P1,829,000 with related cost of goods sold of P1,058,000. At December 31, 2018, customers owed the partnership P247,300. 4. Selling and general expenses, exduding depreciation and interest, amounted to P401 200. On December 31, 2018, P 73,160 of these expenses are unpaid. 5. The partnership pays a weekly salary of P 12,800 which is payable every Friday. December 31, 2018 falls on a Thursday and this accrual is not yet recorded in the partnership…
Vaibhav
On January 1, 2021, Entity A and Entity B incorporated AB Company. The contractual agreement provided that the decisions on relevant activities will require the unanimous consent of both Entity A and Entity B, and they will have right to the net assets of AB Company. Entity A and Entity B invested P400,000 and P600,000 respectively, equivalent to 40:60 capital interest of AB Company. The financial statements of AB Company provided the following data for its two-year operation (see image below).1. How much is the balance of Investment in Joint Venture to be reported by Entity B in its Statement of Financial Position at December 31, 2022? 2. How much is the balance of Investment in Joint Venture to be reported by Entity A in its Statement of Financial Position at December 31, 2021? _______________
On October 1, 2021, Tyeso Company entered in a noncancellable purchase commitment to purchase inventory at P3,000 per unit. The 2,500 units of inventory will be delivered on February 28, 2022. On December 31,2021, the fair value of each inventory is at P2,850. On date of delivery, each unit of inventory is selling at P2,910. A. How much is the amount of liability on purchase commitment as of December 31, 2021? B. How much is the amount of inventory recorded on February 28, 2022? C. How much is the amount of gain or loss recognized on February 28, 2022?
Company A is parent company with subsidiary Company B. The following intercompany sales were recorded for the year ended 31 December 2020. - Intercompany sales at invoice prices amounted to RM100,000 of which RM40,000 remained in the closing inventories of the buying company. The profit element on intercompany sales to the selling company was at 20% of the invoice prices. Required:Show the journal entries to eliminate the above intercompany transactions.
Arriba and its 80 percent-owned subsidiary (Abajo) reported the following figures for the year ending December 31, 2021 (credit balances indicated by parentheses). Abajo paid dividends of $49,000 during this period. Sales Cost of goods sold Operating expenses Dividend income Net income Arriba $(980,000) Abajo $(490,000) 490,000 229,300 284,200 98,000 (39,200) 0 $(245,000) $(162,700) In 2020, Intra-entity gross profits of $49,000 on upstream transfers of $147,000 were deferred into 2021. In 2021 intra-entity gross profits of $64,700 on upstream transfers of $178,400 were deferred into 2022. a. What amounts appear for each line in a consolidated income statement for the year ending December 31, 2021? b. What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 21 percent. (For all requirements, Input all amounts as positive values.) Sales Cost of goods sold Operating expenses Dividend income Amount
On 5 June 2022, a parent entity sold inventories to a subsidiary entity for $80. The inventories had previously cost the parent entity $72. All the inventories are still held by the subsidiary at reporting date, 30 June 2022. Ignoring tax effects, the adjustment entry in the consolidation worksheet at reporting date is: a. Sales revenue O b. O C. Cost of sales Inventories Cash Sales revenue Cost of sales Inventories Sales revenue Cost of sales Inventories d. Sales revenue Cash Inventories Cost of sales Dr Ä ÄÄ Ä ÄJÄJ Cr Cr Dr Cr Dr Cr Dr Cr Cr Dr Cr Dr Cr 80 000 72 000 72 000 80 000 72 000 72 000 8 000 72 000 72 000 72 000 72 000 8 000 72 000 72 000
Camille, Incorporated, sold $147,000 in inventory to Eckerle Company during 2023 for $245,000. Eckerle resold $109,000 of this merchandise in 2023 with the remainder to be disposed of during 2024. Required: Assuming that Camille owns 34 percent of Eckerle and applies the equity method, what journal entry is recorded at the end of 2023 to defer the intra-entity gross profit? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. 1.Record the entry at the end of 2023 to defer unrealized gross profit.
The Partnership of Rose and Dailine is being dissolved, and the assets and equities at book value and fair value and profit and loss ratios at January 1, 2021 are as follows:Book Value Fair ValueCash P20,000 P20,000Accounts Receivables – net 100,000 100,000 Inventories 50,000 200,000Plant Assets – net 100,000 120,000P270,000 P440,000Accounts Payable P50,000 P50,000Rose, Capital 120,000Dailine, Capital 100,000P270,000 Rose and Dailine agreed to admit Janyla into the partnership for one-third interest. Janyla invests P95,000 cash and a building to be used in the business with a book value to Janyla for P100,000 and a fair value of P120,000.Compute the capital balance of Dailine after the admission assuming that the assets are revalued and goodwill is recognized.a. P175,000 c. P195,000b. 155,000 D. 205,000
During 2020, Blue Company purchased inventory costing $80,000 and sold the inventory to its wholly-owned subsidiary, Red, for $100,000 before December 31, 2020. The following elimination entry in consolidation was made for profit deferred on intercompany inventory events: Sales 100,000 Cost of goods 80,000 Inventory 20,000 During 2021 all of the profit deferred on this intercompany inventory sale in 2020 was recognized when the inventory was sold to third parties for $120,000. What elimination entry is needed in consolidation in 2021?
ABC Corp. is engaged in the manufacture and sale of facemasks. To increase sales, the marketing arm of the Company entered into consignment agreements with third parties. Inday. a consignee received the facemasks on March 1, 2021. If unsold, VAT shall accrue on: O April 29, 2021 O May 1, 2021 O April 30, 2021 O No VAT shall accrue