'Advance Accounting 1\r'

' vocalise hypothesis103 CHAPTER 6 SOLUTIONS TO MULTIPLE CHOICES 6-1: a Assets per Jessica Company- remainder sheetP3,550,000 Jessica’s proportionate evoke in assets of JV (50%) 1,000,000 number assets of JessicaP4550,000 6-2: a add up liabilities moreover of Jenny Co. 6-3: b 6-4: b investment of Heart P80,000 cyberspace piece: Sales150,800 live of gross sales (150,800 ? 125%)120,640 Gross wage 30,160 Expenses 10,000 pull in hit 20,160 do good/loss ratio x 40% 8,064 ease of investiture in JVP88,064 6-5: a hard currencyP190,000 mathematical product inventory 29,360 Accounts receivable 150,800 full(a) assets 370,160 sweet-flavored Co’s, proportionate pursual x 60% Sweet Company’s region in total assetP222,096 6-6: a Sales7,200 woo of sales PurchasesP10,000 merchandise inventory, block off (50% of P10,000)__5,000_5,000 Gross net income2,200 Expenses___ five hundred solve do goodsP 1,700 104Chapter 6 6-7: b first investment ( currency) P10,000 put on office (P1,700 / 2)___850 brace of investiture flyerP10,850 6-8: a join threaten account in front pull in statistical dispersion (credit poise)P 9,000 unsold merchandise__2,500 occasion meditation expediency sooner tip off to SalasP11,500 pin venture attain aft(prenominal) tiptoe to Salas (P11,500 / cxv%)P10,000 6-9: b Fee of Salas (P10,000 x 15%)P 1,500 loot mete out of Salas (P10,000 x 25%)_2,500 TotalP 4,000 6-10: b SalasSalve sense of equilibrium before take in distributionP  500 (dr)P 2,000 (cr) addition share:Sabas (P10,000 x 40%)4,000 Salve (P10,000 x 35%)_______3,500 dimensionP 3,500 (cr)P 5,500 (cr) 6-11: d knock venture account balance before pull in distribution ( account)P  6,000 articulate venture profit (P4,500 x 3)_13,500 Cost of unsold merchandise (inventory) taken by DanteP19,500 6-12: b Edwin Capital: Debits: dimension before profit distributionP14,000 assign: Profit share__4,500 Due from Edwin (debit balance)P  9,500 joint speculation105 definetlement to Ferdie (Balance of upper-case letter account)Debits:P  â€0†credit:Balance before profit distributionP16,000 Profit share__4,500_20,500 Due to Ferdie (credit balance)P20,500 occlusion to Dante (balance of JV Cash account) Debits:Balance before coin settlementP30,000 Due from Edwin__9,500P39,500 reference books:Due to Ferdie_20,500 BalanceP19,000 6-13: a JV account balance before profit distribution (cr)P 4,600 unsold merchandise (required dr balance after profit distribution)__2,000 join venture profit before fee to JerryP 6,600 joystick venture profit after fee (P6,600 / one hundred ten%)__6,000 Fee to JerryP   600 6-14: d incrust CapitalIsaac Capital Balances before profit distribution(P  200)P 1,800Profit distribution: Harry P6,000 x 50%)3,000 Isaac (P6,000 x 20%)1,200 Cash settlementsP 2,800P  3,000 6-15: b SalesP14,000 Cost of sales: trade in inventory, petition (contributions)P14,000 Freight300 Purchases__4,000 Goods available for saleP18,300 swop inventory, end (P8,300/2)__4,15014,150 Gross profit (loss)(150) Expenses (P400 + P200)__600 Net profit (loss)P(  750) 6-16: c Contributions to the control stick accident (P5,000 + P8,000)P13,000 Loss share (P750 x 50%)(   375) unsold merchandise taken (withdrawal)(  4,150) final exam settlement to jackP  8,475 106Chapter 6 SOLUTIONS TO PROBLEMS riddle 6 †1 Books of Blanco (Manager)Books of AblanJV Cash100,000 investing in JV90,000 word jeopardize90,000 swap inventory90,000 Cash100,000 Ablan Capital90,000 conjugation Venture60,000 JV cash60,000 spliff Venture20,000 JV cash20,000 JV cash200,000 common Venture200,000 count of JV Profit Total debit to JVP170,000 Total credit to JVP200,000 character reference balance (Profit)P  30,000 Distribution pin Venture30,000 investing in JV15,000 Profit from JV15,000Profit from JV15,000 Ablan capital15,000 Ablan capit al105,000Cash105,000 JV cash105,000 enthronization in JV105,000 Cash155,000 JV cash155,000 critical point Venture107 line of work 6 †2 Books of the conjunction Venture 1. computer equipment105,000Ella capital60,000 Fabia capital45,000 2. Purchases80,000 Supplies2,000 Diaz capital82,000 3. Expenses9,000 Diaz capital9,000 4. Cash150,000 Sales150,000 5. Expenses30,000 Cash30,000 6. Merchandise inventory20,000 Ella capital20,000 7. Fabia capital10,000 Cash10,000 8. Adjusting and closing entries: (a)Expenses500 Supplies500 (b)Sales150,000 Income compact150,000 Income summary77,500 Merchandise inventory2,500 Purchases80,000 Income summary39,500 Expenses39,500 Distribution of profit: Income summary33,000 Diaz capital11,000 Ella capital11,000 Fabia capital11,000 108Chapter 6 Books of Diaz (1) enthronization in say Venture82,000Cash82,000 (2) coronation in mutual Venture9,000 Cash9,000 (3)To cross-file profit share: Investment in Joint Venture11,000 Profit from Joint Venture11,0 00 Books of Ella: (1)Investment in Joint Venture60,000 electronic computer equipment60,000 (2)Investment in Joint Venture20,000 Merchandise inventory20,000 (3)To say profit share: Investment in Joint Venture11,000 Profit from Joint Venture11,000 Books of Fabia: (1)Investment in Joint Venture45,000 Computer equipment45,000 (2)Cash10,000 Investment in Joint Venture10,000 (3)To come in profit share: Investment in Joint Venture11,000 Profit from Joint Venture11,000 Joint Venture109 Problem 6 †3 1)No reveal Set of Joint Venture Books is Used Books of Duran (Manager) May1:Joint Venture12,500 Castro capital12,000 Cash500 7:JV cash10,000 Bueno capital10,000 26:Joint Venture9,500 JV cash9,500 30:JV accounts receivable16,000 Joint Venture16,000 June30:JV cash15,000 JV accounts receivable15,000 27:JV cash9,000 Joint Venture9,000 30:To testify unsold merchandise taken by Duran: Merchandise inventory3,000 Joint Venture3,000 To record profit distribution: Joint Venture6,000 Profit from JV2,000 Bueno capital2,000 Castro capital2,000 To record settlements: Bueno capital12,000 Castro capital14,000 JV cash24,500 Cash1,500Accounts receivable1,000 JV accounts receivable1,000 110Chapter 6 Books of Bueno May7:Investment in Joint Venture10,000 Cash10,000 June30:Investment in Joint Venture2,000 Profit from Joint Venture2,000 Cash12,000 Investment in Joint Venture12,000 Books of Castro May1:Investment in Joint Venture12,000 Merchandise inventory12,000 June30:Investment in Joint Venture2,000 Profit from Joint Venture2,000 Cash14,000 Investment in Joint Venture14,000 (2)A Separate Set of Books is used: Books of the Joint Venture May1:Merchandise inventory12,500 Castro capital12,000 Duran capital500 7:Cash10,000 Bueno capital10,000 26:Purchases9,500 Cash9,500 0:Accounts receivable16,000 Sales16,000 June20:Cash15,000 Accounts receivable15,000 27:Cash9,000 Sales9,000 Joint Venture111 June 30:Closing entries: Sales25,000 Income summary25,000 Income summary19,000 Merchandise invent ory, end3,000 Merchandise inventory12,500 Purchases9,500 Distribution of profit: Income summary6,000 Bueno capital2,000 Castro capital2,000 Duran capital2,000 Settlements to merchant-venturers: Bueno capital12,000 Castro capital14,000 Duran capital2,500 Merchandise inventory3,000 Accounts receivable1,000 Cash24,500 Books of Duran (Manager/Operator) May1:Investment in Joint Venture500 Cash500 June30:Investment in Joint Venture2,000Profit from Joint Venture2,000 Cash2,500 Investment in Joint Venture2,500 Books of Bueno and Castro (Same as in No. 1 requirement) 112Chapter 6 Problem 6 †4 (1)Books of Seiko (Manager/Operator) April1:JV Cash102,000 Notes collectible †PNB34,000 Roles capital34,000 Timex capital34,000 May:Joint venture64,100 Cash16,300 Rolex capital7,800 June:Rolex capital30,000 JV cash30,000 Joint venture111,400 Cash37,400 Rolex capital64,700 Timex capital9,300 July:Cash40,000 Rolex capital15,000 Timex capital10,000 JV cash65,000 Joint venture55,770 Cash13,970 Ro lex capital31,240 Timex capital10,560 dire:Cash45,000 Rolex capital67,000Timex capital13,500 JV cash125,500 Joint venture30,600 Cash9,730 Rolex capital16,560 Timex capital4,310 To record sales: JV cash (P421,000 x 96%)404,160 Joint venture404,160 Joint Venture113 To record payment of loan to PNB: Notes due †PNB34,000 Rolex capital34,000 Timex capital34,000 Joint venture ( pursuance expense)8,000 JV cash110,000 To record distribution of profit: Joint venture134,290 Gain from JV (30%)40,287 Rolex capital (60%)80,574 Timex capital (10%)13,429 Computed as follows: Total debits tot he JV accountP269,870 Total impute to the JV account_404,160 Gain (credit balance)P134,290 To record settlement: Cash32,687Rolex capital128,874 Times capital14,099 JV cash175,660 Computations: Settlement to Rolex †Balance of capital account: Debits:JuneP30,000 July15,000 August67,000 retribution of label payable_34,000P146,000 opinions:April 1P34,000 May47,800 June64,700 July31,240 August16,560 Profit share_80,574__274,874 Credit balanceP 128,874 114Chapter 6 Settlement to timex †Balance of capital account Debits:JulyP 10,000 August13,500 Payment of loan__34,000P 57,500 attribute:April 1P 34,000 June9,300 July10,560 August4,310 Profit share__13,429_71,599 Credit balanceP 14,099 Settlement to Seiko †Balance of JV cash account Debits:April 1P102,000Loan proceeds_404,160P506,160 Credits:JuneP 30,000 July65,000 August125,500 Payment of loan_110,000_330,500 Balance of JV cash175,660 slight:Settlement to RolexP128,874 Settlement to Timex__14,099_142,973 Settlement to SeikoP  32,687 (2)Partial Balance saddlery June 30, 2008 Books of Seiko (Manager/operator) underway assets: Investment in joint Venture: Joint Venture assets: CashP 72,000 Joint Venture_175,500P247,500 Less: law of other venturers (P116,500 + P43,300)_159,80087,700 Current liabilities: Notes payable †PNB34,000 Joint Venture115 Computation of balances as of June 30, 2008: JV C ashJoint Venture April 1P102,000P30,000JuneMayP  64,100BalanceP  72,000June_111,400 BalanceP175,500 Notes PayableRolex capital P34,000AprilJuneP 30,000P 34,000April 1 47,800May _________64,700June P 30,000P146,500 P116,500 Timex capital P34,000April __9,000June P43,300 Problem 6 †5 Consolidated Balance Sheet CashP 61,000 Receivables122,000 Inventory102,500 Other assets__40,500 Total assetsP326,000 Accounts payableP 61,000 Other liabilities96,500 Capital stock50,000 maintained earnings_118,500 Total liabilities and stockholders truthP326,000 Consolidated Income narration SalesP246,750 Cost of sales_124,750 Gross profit122,000 direct expenses__58,250 Consolidated net incomeP  63,750 16Chapter 6 Problem 6 â€6 (a)Journal entries on venture books June 15:Cash1,000,000 MacDo1,000,000 Initial contribution at 6% July 1:Land2,400,000 owe payable1,650,000 Cash 750,000 Purchased land for cash and 6% owe. Aug 1:Cash1,100,000 MacDo1,100,000 superfluous cont ribution at 6%. Land 950,000 Cash 950,000 gainful for improvements. Sept 30: owe payable 250,000 fill expense- owe 3,750 Cash 253,750 Reduced owe and give interest. Oct 31: owe payable 400,000 recreate expense- owe 8,000 Cash 408,000 Reduced owe and paid interest. Nov 30:mortgage payable 300,000Interest expense- owe 7,500 Cash 307,500 Reduced mortgage and paid interest. Dec 31:mortgage payable 200,000 Interest expense- Mortgage 21,000 Cash 221,000 Reduced mortgage and make semi-annual interest payment. Joint Venture117 31:Cash2,600,000 Sales2,600,000 Sales to date. 31:Commissions 130,000 Cash 130,000 P2,600,000 x 5% 31:Expenses 628,100 Cash 628,100 remunerative expenses 31:Interest expense- Venturer 60,000 MacDo 60,000 6% on P1,000,000 from June 15 to declination 31, and on P1,100,000 from August 1 to December 31. 31:Sales2,600,000 Land (cost of land sold)1,145,000 Expenses 628,100 Commissions 130,000Interest expense- mortgage 40,250 Interest- venturer 60,000 Income summa ry 596,650 To ending income and expense accounts. 31:Income summary 596,650 MacDo 596,650 MacEn 238,660 To divide gain, 60:40. 31:MacDo 801,650 Cash 801,650 Payment on account. (b)Journal entries on MacDo’s books: June 15:Investment in Joint Venture1,000,000 Cash1,000,000 Initial contribution. Aug 1:Investment in Joint Venture1,100,000 Cash1,100,000 special contribution. 118Chapter 6 Dec 31:Investment in Joint Venture 60,000 Interest income 60,000 Interest earned on cash advanced. 31:Investment in Joint Venture 357,990Gain on Joint Venture 357,990 60% of gain on venture. 31:Cash 801,650 Investment in Joint Venture 801,650 refund in part of advances. (c)MacDo and MacEn Joint Venture Income Statement For the full stop from June 15 to December 31, 2008 SalesP2,600,000 Cost of land sold: LandP2,400,000 Improvements 950,000 TotalP3,350,000 Unsold land 2,205,000 1,145,000 Gross profit 1,455,000 Expenses: Advertising and office expensesP 628,100 Interest on mortgage 40,250 Inter est on advances 60,000 Commissions 130,000 858,350 Net gainP 596,650 Distributions: MacDo (P596,650 x 60%)P 357,990 MacEn (P596,650 x 40%) 238,660Mac Do and MacEn Joint Venture Balance Sheet December 31, 2008 Assets CashP 250,000 Land 2,205,000 Total AssetsP2,455,000 Liabilities and equity: Mortgage payableP 500,000 MacDo 1,716,340 MacEn 238,660 Total liabilities and equityP2,455,000 Joint Venture119 Venturers equity (interest) MacDoMacEnTotal InvestedP2,100,000P2,100,000 Shares: GainP 357,990P238,660P 596,650 Interest on advances 60,000 60,000 Commissions 130,000 130,000 Total 417,990 368,660 786,650 Balances 2,517,990 368,660 2,886,650 Withdrawn (801,650) (130,000) (931,650) Equity (interests)P1,716,340P238,660P1,955,000\r\n'