On September 1, 2015, Red and White formed a joint venture to acquire and sell special merchandise. The contractual arrangements provide that Red is to manage the venture for a fee and that profits and losses are to be divided equally. On September 2, 2015, White invest cash of 40,000, which was used to purchase merchandise. Red incurs expenses amounting to 20,000. On September 15, one-half of the merchandise was sold for 28,000 cash. No further transactions occured until the end of the month. In the books of White, the Investment in JV account on Semptember 30 would show a balance of: • 40,000 • 45,000 • 43,000 36,600

On September 1, 2015, Red and White formed a joint venture to acquire and sell special merchandise. The contractual arrangements provide that Red is to manage the venture for a fee and that profits and losses are to be divided equally. On September 2, 2015, White invest cash of 40,000, which was used to purchase merchandise. Red incurs expenses amounting to 20,000. On September 15, one-half of the merchandise was sold for 28,000 cash. No further transactions occured until the end of the month. In the books of White, the Investment in JV account on Semptember 30 would show a balance of: • 40,000 • 45,000 • 43,000 36,600

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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