Kindly answer the following. You alwayd reject it please answer now.4. Assuming there is separate records maintained for the joint operation, compute for the Joint Operation Account of Medium, before distributing net income.5. Assuming there is separate records maintained for the joint operation, compute for the cash settlement for Medium. Accounting for Joint Operation TransactionsSmall, Medium and Large formed a joint operation. The followingFact pattern:Copall, Medium and Large formed a joint operation. The followingwere the joint operation transactions:Small transferred cash of P100,000 to Large, the appóintedmanager, representing Small's contribution.Medium contributed inventories worth P120,000.. Large contributed cash of P80,000.d. Large purchased inventories worth P160,000 and paid freightof P20,000 using the cash contributions.e. Large made cash sales of P900,000.f. Large paid expenses of P240,000 from the JO-Cash.a.All inventories were sold 'except one-third from Large'spurchases. Large was charged for the cost of the unsoldinventory.The joint operators agreed on the following:i.Large is entitled to à management fee of P6,000 and abonus of 15% of profit after management fee and bonus.Any remaining profit or loss is divided equally.ii.

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Business

Finance

separate records

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Kindly answer the following. You alwayd reject it please answer now.

4. Assuming there is separate records maintained for the joint operation, compute for the Joint Operation Account of Medium, before distributing net income.

5. Assuming there is separate records maintained for the joint operation, compute for the cash settlement for Medium.

Accounting for Joint Operation Transactions
Small, Medium and Large formed a joint operation. The following
Fact pattern:
Copall, Medium and Large formed a joint operation. The following
were the joint operation transactions:
Small transferred cash of P100,000 to Large, the appóinted
manager, representing Small's contribution.
Medium contributed inventories worth P120,000.
. Large contributed cash of P80,000.
d. Large purchased inventories worth P160,000 and paid freight
of P20,000 using the cash contributions.
e. Large made cash sales of P900,000.
f. Large paid expenses of P240,000 from the JO-Cash.
a.
All inventories were sold 'except one-third from Large's
purchases. Large was charged for the cost of the unsold
inventory.
The joint operators agreed on the following:
i.
Large is entitled to à management fee of P6,000 and a
bonus of 15% of profit after management fee and bonus.
Any remaining profit or loss is divided equally.
ii.

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