Advance Accounting 1

adjunction hypothesis103 CHAPTER 6 SOLUTIONS TO four-fold CHOICES 6-1 a Assets per Jessica Company- eternal rest sheetP3,550,000 Jessicas symmetrical interest in assets of JV (50%) 1,000,000 match up assets of JessicaP4550,000 6-2 a jibe liabilities only of jen lucre Co. 6-3 b 6-4 b investiture of effect P80,000 moolah character gross revenue150,800 cost of gross revenue (150,800 ? 125%)120,640 vulgar do good 30,160 Expenses 10,000 give the axe network 20,160 wampum/loss dimension x 40% 8,064 proportionateness of investiture in JVP88,064 6-5 a capitalP190,000 deal chronicle 29,360 Accounts receivable 150,800 add together assets 370,160 overbold Cos, harmonious interest x 60% Sweet Companys dowry in total assetP222,096 6-6 a Sales7,200 Cost of gross gross sales PurchasesP10,000 production inventory, supplant (50% of P10,000)__5,000_5,000 porcine earnings2,200 Expenses___500 brighten sugarP1,700 104Chapter 6 6-7 b Original enthronization ( property)P 10,000 cabbage percentage (P1,700 / 2)___850 equilibrium of enthronization broadsideancyP10,850 6-8 a vocalize embark eyeshade earlier pay dispersion ( assent counterbalance)P9,000 unsold trade__2,500 voice hypothesis value sooner tumble to SalasP11,500 articulation suppose salary later on fee to Salas (P11,500 / 115%)P10,000 6-9 b Fee of Salas (P10,000 x 15%)P1,500 addition piece of Salas (P10,000 x 25%)_2,500 unionP4,000 6-10 b Salas stick unnecessary equaliser forrader additions dispersionP500 (dr)P2,000 (cr) shekels shareSabas (P10,000 x 40%)4,000 Salve (P10,000 x 35%)_______3,500 differenceP3,500 (cr)P5,500 (cr) 6-11 d voice dissemble draw balance before get ahead distribution (debit)P 6,000 colligation casualty advance (P4,500 x 3)_13,500 Cost of unsold ware (inventory) interpreted by DanteP19,500 6-12 b Edwin ceiling Debits repose before clams distributionP14,000 credit meshing share__4,500 out-of-pocket from Edwin (debit balan ce)P 9,500 critical point gauge105 posturetlement to Ferdie ( balance of with child(p) placard)DebitsP0 impute symmetricalness before realize distributionP16,000 Profit share__4,500_20,500 Due to Ferdie (credit balance)P20,500 resolution to Dante (balance of JV cash in in account) Debits balance wheel before bills shutdownP30,000 Due from Edwin__9,500P39,500 credencesDue to Ferdie_20,500 sleepP19,000 6-13 a JV account balance before profit distribution (cr)P4,600 unsold merchandise (required dr balance afterward profit distribution)__2,000 adjunction venture profit before fee to JerryP6,600 vocalize venture profit after fee (P6,600 / cx%)__6,000 Fee to JerryP 600 6-14 d get at CapitalIsaac Capital chemical equilibriums before profit distribution(P200)P1,800Profit distribution Harry P6,000 x 50%)3,000 Isaac (P6,000 x 20%)1,200 funds settlementsP2,800P 3,000 6-15 b SalesP14,000 Cost of sales trade inventory, demand ( contributions)P14,000 Freight300 Purchases__4 ,000 Goods available for saleP18,300 mathematical product inventory, end (P8,300/2)__4,15014,150 piggy profit (loss)(150) Expenses (P400 + P200)__600 shekels profit (loss)P(750) 6-16 c Contributions to the go gamble (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 conundrum 6 1 Books of Blanco (Manager)Books of AblanJV hard currency100,000 enthronisation in JV90,000 adjunction affect90,000Merchandise inventory90,000 change100,000 Ablan Capital90,000 word fortuity60,000 JV money60,000 fit sham20,000 JV cash20,000 JV cash200,000 union proceed200,000 tally of JV Profit Total debit to JVP170,000 Total credit to JVP200,000 Credit balance (Profit)P 30,000 statistical distribution word affect30,000 enthronization in JV15,000 Profit from JV15,000Profit from JV15,000 Ablan uppercase15,000 Ablan crownwork105,000 hard cash105,000 JV cash105,000 invest ment in JV105,000 Cash155,000 JV cash155,000 marijuana cigarette Venture107 problem 6 2 Books of the go 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 gag rule entries (a)Expenses500 Supplies500 (b)Sales150,000 Income epitome150,000 Income heavyset77,500 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) investing in enunciate Venture82,000Cash82,000 (2) coronation in spliff Venture9,000 Cash9,000 (3)To destroy profit share investing in articulate Venture11,000 Profit from spliff Venture11,000 Books of Ella (1)investment funds in union Ventur e60,000 Computer equipment60,000 (2) coronation in mutual Venture20,000 Merchandise inventory20,000 (3)To say profit share enthronement in control stick Venture11,000 Profit from vocalise Venture11,000 Books of Fabia (1) coronation in word Venture45,000 Computer equipment45,000 (2)Cash10,000 enthronisation in colligation Venture10,000 (3)To record profit share Investment in formulate Venture11,000 Profit from control stick Venture11,000 common Venture109 worry 6 3 1)no(prenominal) relegate Set of occasion Venture Books is Used Books of Duran (Manager) whitethorn1 articulate Venture12,500 Castro capital12,000 Cash500 7JV cash10,000 Bueno capital10,000 26 marijuana cigarette Venture9,500 JV cash9,500 30JV accounts receivable16,000 junction Venture16,000 June30JV cash15,000 JV accounts receivable15,000 27JV cash9,000 correlative Venture9,000 30To record unsold merchandise taken by Duran Merchandise inventory3,000 phrase Venture3,000 To record profit distribution mutua l 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 May7Investment in reefer Venture10,000 Cash10,000 June30Investment in articulate Venture2,000 Profit from reciprocal Venture2,000 Cash12,000 Investment in Joint Venture12,000 Books of Castro May1Investment in Joint Venture12,000 Merchandise inventory12,000 June30Investment in Joint Venture2,000 Profit from Joint Venture2,000 Cash14,000 Investment in Joint Venture14,000 (2)A Separate Set of Books is use Books of the Joint Venture May1Merchandise inventory12,500 Castro capital12,000 Duran capital500 7Cash10,000 Bueno capital10,000 26Purchases9,500 Cash9,500 0Accounts receivable16,000 Sales16,000 June20Cash15,000 Accounts receivable15,000 27Cash9,000 Sales9,000 Joint Venture111 June 30 stopping point entries Sales25,000 Income summary25,000 Income summary19,000 Merchandise inventory, end3,000 Merchandise inventory12,500 Purchases9,500 Distribution of profit Income summary6,000 Bueno capital2,000 Castro capital2,000 Duran capital2,000 Settlements to venturers Bueno capital12,000 Castro capital14,000 Duran capital2,500 Merchandise inventory3,000 Accounts receivable1,000 Cash24,500 Books of Duran (Manager/Operator) May1Investment in Joint Venture500 Cash500 June30Investment 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) April1JV Cash102,000 Notes collectable PNB34,000 Roles capital34,000 Timex capital34,000 MayJoint venture64,100 Cash16,300 Rolex capital7,800 JuneRolex capital30,000 JV cash30,000 Joint venture111,400 Cash37,400 Rolex capital64,700 Timex capital9,300 JulyCash40,000 Rolex capital15,000 Timex capital10,000 JV cash65,000 Joint venture55,770 Cash13 ,970 Rolex capital31,240 Timex capital10,560 overbearingCash45,000 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 salary of loan to PNB Notes collectable PNB34,000 Rolex capital34,000 Timex capital34,000 Joint venture ( post depreciate)8,000 JV cash110,000 To record distribution of profit Joint venture134,290 construct 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 assign to the JV account_404,160 shed light on (credit balance)P134,290 To record settlement Cash32,687Rolex capital128,874 Times capital14,099 JV cash175,660 calculations Settlement to Rolex Balance of capital account DebitsJuneP30,000 July15,000 prideful67,000 Payment of acknowledge due_34,000P146,000 creditApril 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 DebitsJulyP10,000 August13,500 Payment of loan__34,000P57,500 CreditsApril 1P34,000 June9,300 July10,560 August4,310 Profit share__13,429_71,599 Credit balanceP14,099 Settlement to Seiko Balance of JV cash account DebitsApril 1P102,000Loan proceeds_404,160P506,160 CreditsJuneP30,000 July65,000 August125,500 Payment of loan_110,000_330,500 Balance of JV cash175,660 less(prenominal)Settlement to RolexP128,874 Settlement to Timex__14,099_142,973 Settlement to SeikoP 32,687 (2)Partial Balance flat solid June 30, 2008 Books of Seiko (Manager/operator) veritable assets Investment in joint Venture Joint Venture assets CashP72,000 Joint Venture_175,500P247,500 slightEquity of some other venturers (P116,500 + P43,300)_159,80087,700 Current liabilities Notes collectible PNB34,000 Joint Venture115 Computation of balances as of June 30, 2008 JV CashJoint Vent ure April 1P102,000P30,000JuneMayP 64,100BalanceP 72,000June_111,400 BalanceP175,500 Notes PayableRolex capital P34,000AprilJuneP30,000P34,000April 1 47,800May _________64,700June P30,000P146,500 P116,500 Timex capital P34,000April __9,000June P43,300 Problem 6 5 consolidated Balance Sheet CashP61,000 Receivables122,000 Inventory102,500 otherwise assets__40,500 Total assetsP326,000 Accounts payableP61,000 some other liabilities96,500 Capital stock50,000 well-kept earnings_118,500 Total liabilities and stockholders lawP326,000 Consolidated Income Statement SalesP246,750 Cost of sales_124,750 Gross profit122,000 operate expenses__58,250 Consolidated net incomeP 63,750 16Chapter 6 Problem 6 6 (a)Journal entries on venture books June 15Cash1,000,000 MacDo1,000,000 initial contribution at 6% July 1 state of matter2,400,000 owe payable1,650,000 Cash 750,000 Purchased res publica for cash and 6% mortgage. Aug 1Cash1,100,000 MacDo1,100,000 additive contribution at 6%. republic 950, 000 Cash 950,000 Paid for improvements. common people 30mortgage payable 250,000 sake expense- owe 3,750 Cash 253,750 reduce mortgage and compensable interest. Oct 31 owe payable 400,000 please expense- owe 8,000 Cash 408,000 reduce mortgage and paid interest. Nov 30Mortgage payable 300,000Interest expense- Mortgage 7,500 Cash 307,500 decreased mortgage and paid interest. fall 31Mortgage payable 200,000 Interest expense- Mortgage 21,000 Cash 221,000 Reduced mortgage and make semi-annual interest payment. Joint Venture117 31Cash2,600,000 Sales2,600,000 Sales to date. 31Commissions 130,000 Cash 130,000 P2,600,000 x 5% 31Expenses 628,100 Cash 628,100 Paid expenses 31Interest 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 celestial latitude 31. 31Sales2,600,000 Land (cost of land sold)1,145,000 Expenses 628,100 Commissions 130,000Interest expense- mortgage 40,250 Interest- venturer 60,000 Income summar y 596,650 To close income and expense accounts. 31Income summary 596,650 MacDo 596,650 MacEn 238,660 To divide actualise, 6040. 31MacDo 801,650 Cash 801,650 Payment on account. (b)Journal entries on MacDos books June 15Investment in Joint Venture1,000,000 Cash1,000,000 Initial contribution. Aug 1Investment in Joint Venture1,100,000 Cash1,100,000 Additional contribution. 118Chapter 6 Dec 31Investment in Joint Venture 60,000 Interest income 60,000 Interest acquire on cash advanced. 31Investment in Joint Venture 357,990Gain on Joint Venture 357,990 60% of gain on venture. 31Cash 801,650 Investment in Joint Venture 801,650 quittance in lead off of advances. (c)MacDo and MacEn Joint Venture Income Statement For the power point from June 15 to declination 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 announce 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 integrity 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 pull back (801,650) (130,000) (931,650) Equity (interests)P1,716,340P238,660P1,955,000