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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Which of the following is incorrect? The
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.
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