The following are the transactions of a joint operation formed by A, B and C during a year: > A contributed cash of P400 and merchandise costing P800. > B contributed merchandise costing P1,600. Freight-in paid by B is P80. > C made purchases amounting to P400 using the cash contributed by A. > C paid expenses of P800 using its own cash. > C made total sales of P3,200. All the merchandise was sold except one-half of those contributed by B. > Cis appointed as the manager of the joint operation. As compensation, C is entitled to a P120 salary plus bonus of 25% on profit after salary and bonus. > Interest of 10% per annum is allowed to A and B's capital contributions. > Cis charged for the cost of any unsold inventory. Profit or loss after necessary adjustments shall be divided equally. How much is the profit or loss after salaries but before bonus of the joint operation?

The following are the transactions of a joint operation formed by A, B and C during a year: > A contributed cash of P400 and merchandise costing P800. > B contributed merchandise costing P1,600. Freight-in paid by B is P80. > C made purchases amounting to P400 using the cash contributed by A. > C paid expenses of P800 using its own cash. > C made total sales of P3,200. All the merchandise was sold except one-half of those contributed by B. > Cis appointed as the manager of the joint operation. As compensation, C is entitled to a P120 salary plus bonus of 25% on profit after salary and bonus. > Interest of 10% per annum is allowed to A and B's capital contributions. > Cis charged for the cost of any unsold inventory. Profit or loss after necessary adjustments shall be divided equally. How much is the profit or loss after salaries but before bonus of the joint operation?

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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The following are the transactions of a joint operation formed by A, B and C during a year:
> A contributed cash of P400 and merchandise costing P800.
> B contributed merchandise costing P1,600. Freight-in paid by B is P80.
> C made purchases amounting to P400 using the cash contributed by A.
> C paid expenses of P800 using its own cash.
> C made total sales of P3,200. All the merchandise was sold except one-half of those
contributed by B.
> Cis appointed as the manager of the joint operation. As compensation, C is entitled to a
P120 salary plus bonus of 25% on profit after salary and bonus.
Interest of 10% per annum is allowed to A and B's capital contributions.
Cis charged for the cost of any unsold inventory. Profit or loss after necessary adjustments
shall be divided equally.
How much is the profit or loss after salaries but before bonus of the joint operation?

The accountant of DD Corp. prepared a statement of affairs. Assets which there are no claims or liens
are expected to produce P700,000. Unsecured claims of all classes totaled to P1,050,000. The following
data are claims deemed outstanding: Accrued salaries P15,000; Unrecorded note for P10,000 on which
P600 of interest has accrued held by Norway Corp; A note for P30,000 secured by P40,000 receivable,
estimated to be 60% collectible held by JJ Co.; A P15,000 note, on which P300 interest has accrued held
by Jay Real Estate Co with a book value of P10,000 and a market value of P18,000 is pledged to
guarantee payment of principal and interest; Unpaid income taxes of P35,000. Compute for the amount
realized by partially secured creditors

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