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AA Chapter6
AA Chapter6
1. Books of JV
Oct. 1 Cash 105,000
Butch 35,000
Alex 35,000
Roy 35,000
3 Purchases 100,000
Freight 20,000
Cash 50,000
Accounts Payable 70,000
6 Rent 15,000
Cash 15,000
31 Cash 75,000
Sales 75,000
30 Cash 125,000
Sales 125,000
26 Commission 5,000
Cash 5,000
30 Cash 150,000
Sales 150,000
4 Butch 6,000
Purchases 6,000
5 Sales 116,000
Purchases 94,000
Freight 20,000
Rent 45,000
Operating Expenses 25,000
Alex 55,333
Roy 55,333
Butch 55,334
JV Cash 265,000
Alex 90,333
Butch 84,334
Roy 90,333
Cash 265,000
Butch Alex
Roy
Investment in JV 35,000 35,000 35,000
Cash 35,000 35,000 35,000
Merchandise 6,000
Investment In JV 6,000
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Cash 5,000
Commission Income 5,000
e. JV 30,000
e. JV 30,000 Marikina 30,000
Accumulated Depn. 30,000
g. JV 25,500 g. JV 25,500
JV Accts Pay 150,000 Marikina 25,500
JV Cash 175,500
h. JV 20,000 h. JV 20,000
JV Notes Rec 20,000 Marikina ` 20,000
j. JV 67,000 j. JV 67,000
JV Cash 67,000 Marikina 67,000
JV 620,300 l. JV 620,300
Income from JV 310,150 Income from JV 310,150
Bulacan 310,150 Marikina 310,150
4. Cash 24,500
Joint Venture 1,100
Accounts Receivable 25,000
Pilar 600
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5. JV 5,500
Income from JV 2,500
Pilar 3,000
6. Cash 5,000
Joint Venture 5,000
6. Cash 17,200
Pilar 17,200
Book of Pilar
1. Joint Venture 50,000
Pepe 50,000
3. Pepe 25,000
Accounts Receivable 30,000
Joint Venture 55,000
4. Cash 29,400
JV 1,100
Pepe 500
Accounts Receivable 30,000
Pepe 5,000
Joint Venture 5,000
5. Pepe 5,800
Loss from J V 5,800
Joint Venture 11,600
JV 5,500
Commission Income 3,000
Pepe 2,500
6. Pepe 17,20
Cash 17,20
B 7,245
C 13,296
Cash 20,541
To Prove As Accountability:
Investment 10,500
Share in income 3,959
Withdrawal ( 30,500)
20,541
Books of B
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Joint Venture 10,050
A (914+3045) 3,959
Income from JV 3,045
C 3,046
Cash 7,245
C 13,296
A 20,541
To Prove Bs equity:
Investment 10,500
Share in income 3,045
Withdrawal (6,300)
7,245
6. Books of D
1) Joint Venture 600,000
Cash 600,000
2) Joint Venture 25,000
E 25,000
3) Joint Venture 50,000
F 50,000
4) Cash 300,000
E 250,000
F 150,000
Joint Venture 700,000
5) Joint Venture 145,000
Income from JV 29,000
E 58,000
F 58,000
Book of E
1) Joint Venture 600,000
D 600,000
2) Joint Venture 25,000
Cash 25,000
3) Joint Venture 50,000
F 50,000
4) D 300,000
F 150,000
Cash 250,000
Joint Venture 700,000
5) Joint Venture 145,000
D 29,000
F 58,000
Income 58,000
7. Books of Miles
Mellow Company 105,000
Joint Venture 105,000
Joint Venture 225,000
Income from J V 112,500
Milo Company 67,500
Mellow Company 45,000
Mellow Company 190,000
Milo Company 47,500
Cash 237,500
To prove the accountability of Miles Company to the venture participants:
Dr. Balance P100,000
Income from J V 112,500
Equity over the J V 212,500
J V Cash 450,000
237,500
Books of Mellow:
Merchandise 105,000
Joint Venture 105,000
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Milo Company 67,500
Income from Joint Venture 45,000
Cash 190,000
Milo Company 47,500
Cash 237,500
To prove the equity of Mellow from the venture:
Cr. Balance P250,000
Income from J V 45,000
Withdrawal of merchandise (105,000)
190,000
8. Income Statement:
Pepper Consolidated
Sales P 800,000 P 965,000
Cost of Sales (400,000) (482,500)
Operating Expenses (220,000) 275,000
Net Income from Operation 180,000
Income from Joint Venture 27,500 ________
Net Income P 207,500 P 207,500
Financial Position
Cash P 62,500 P 90,000
Receivables 130,000 146,500
Inventories 110,000 132,000
Plant Assets 640,000 827,000
Investment in Jericho 165,000 ________
P1,097,500 P1,195,500
MULTIPLE CHOICE:
1. 1) J V balance 90,000
Unsold merchandise to T 25,000
115,000
Less Bonus of T 15,000
Net Income 100,000
Share of T at 25% 25,000
Answer: C (15,000 + 25,000)= P40,000
2) R S
Profit Share 40,000 35,000
Add Credit Balance 20,000
Less Debit Balance 5,000 ______
35,000 55,000
Answer: B
2) C, Capital P40,000
Share in loss (72,000/3) 24,000
P16,000
Answer: C
3. Sales P150,000
Cost of Sales P120,000
Freight 3,000
Expenses 15,000 138,000
Profit P 12,000
Answer: D
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4. Total Debits P118,000
Total Credits 50,000
Lizas Equity P 68,000
Answer: A
4.
A. Joint Venture
Cars 66,000,000 Sales 240,000,000
Cars 90,000,000
Land cost 9,000,000
Marketing 5,000,000
Sales disc 450,000
Oper exp 586,500
AR loss 1,005,000 1) 68,963,500
Returns 26,400,000
Profit 94,358,500
A Company C Company
15,000,000 66,000,000 11,400,000 90,000,000
26,002,267 27,442,267
77,002,267 106,042,267
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2) A Company 15,000,000
C Company 11,400,000
Joint Venture 26,400,000
Joint Venture 1,005,000
J V AR 1,005,000
Accts Receivable 9,045,000
J V AR 9,045,000
4) V A C
Cars/cash contributed 14.000,000 66,000,000 90,000,000
AR/cars taken back (9,045,000) (15,000,000) (11,400,000)
Profit share 40,913,966 26,002,267 27,442,267
45,868,966 77,002,267 106,042,267
5) A Company 77,002,267
C Company 106,042,227
Cash 45,868,966
Joint Venture Cash 228,913,500
6) Cash 77,002,267
C Company 106,042,227
V Company 183,044,534
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