Use the following information for the next two questions: A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 960 720 Expenses paid 800 Other income 40 The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally. How much is the profit (loss) of the joint operation? _____________________ On the cash settlement between the joint operators a. A pays B ₱368 b. B pays A ₱368 c. A pays B ₱428 d. B pays A ₱428
Use the following information for the next two questions: A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 960 720 Expenses paid 800 Other income 40 The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally. How much is the profit (loss) of the joint operation? _____________________ On the cash settlement between the joint operators a. A pays B ₱368 b. B pays A ₱368 c. A pays B ₱428 d. B pays A ₱428
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Use the following information for the next two questions:
A and B formed a joint operation. The following were the transactions during the year:
|
A |
B |
Total purchases |
400 |
320 |
Total sales |
960 |
720 |
Expenses paid |
800 |
|
Other income |
40 |
The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally.
- How much is the profit (loss) of the joint operation? _____________________
- On the cash settlement between the joint operators
a. A pays B ₱368
b. B pays A ₱368
c. A pays B ₱428
d. B pays A ₱428
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 4 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education