Tom and Jerry form a joint arrangement considered as joint operation with equal interest in the entity. Tom contributed a machine for P1,000,000 and Jery contributed cash amounting P1,000,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

1. Which of the following is incorrect? The journal entry of Tom to record his contribution

a. Credit machine amounting to 1,000,000.

b. Credit gain on machine amounting to 500,000.

c. Debit machine in joint operation amounting to 500,000.
d. Debit cash in joint operation amounting to 500,000.
2. Which of the following is incorrect? The journal entry of Jerry to record his contribution. 
a. Debit machine in joint operation amounting to 500,000.
b. Debit cash in joint operation amounting to 500,000.
c. Debit cash in joint operation amounting to 1,000,000
d. Credit cash amounting to 1,000,000.
Tom and Jerry form a joint arrangement considered as joint operation with equal interest in the entity. Tom
contributed a machine for P1,000,000 and Jerny contributed cash amounting P1,000,000.
Transcribed Image Text:Tom and Jerry form a joint arrangement considered as joint operation with equal interest in the entity. Tom contributed a machine for P1,000,000 and Jerny contributed cash amounting P1,000,000.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Double entry bookkeeping system
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education