me bin Arrangements Times Instn: Writ your a answers on te paces provid Elen and Cat SEE Gv slowed commision fies puns Sh nen we Sess ow) Ete “ult sowed commis 3% oe besa (3) any remaining peofit ‘shall be shared equally, Venture transactions follow: . fa December 20 lena make cash purchases, P9500. January “Y Catherine pays venture expenses, i300 4g SEI%. 0 flows: ea, 000 Cathrine P.00 (members phir own thes), tena rer usold merchandise and eeeies ish of P2500 on the stu, (6 The panier make cash eitement 1. The join vestre profit ores is Stefan and Damon join ina venture for the sale of cenain novels ding convention. Stef acts a8 8 managing parte, Partners {gre to the following: Stefan sal be allowed a commission of Son gross pureases: members sal te allomed corission of 30% on thee respective sales: ny remaining peoit is toe shared eal: Venture wansactons follow Sune 12 Damon ives Stefan #300 to be used for vemure purposes Stefan purcass merchandise For P10.00, paying P.000 the balance within 1 dys Stan pays expenses chargeable the venture, P10. Sales by Sefan and Damon ae follows: cash proceed are hep by parties making the sles) Stefan 9.70, Damen 7,90, 18. Stetan pays adn vente expenses, P1200, 20 Unsold merchandise i etmed by Scfn credit of PAOD being allowed onthe setun. The balance ‘owed spat. Stem between pres cml “ is 2. The joint venture prof sss 3. The balance ofthe invstnent in join venue 4. Share of Damon inthe jim venture pot o ss Jeremy. Jenna and Atari form a joint vertu for the sale of cena merchandise. Jeremy and Jena are ro convibue the merchandise. Alves 0a asthe sles agent andi 9 be allowed So rom sales Jreniy and Jena ae fo be allowed ayer ‘on tei orginal investment. The Blane of any prof enthe vena 4 be ides ely no he ree pais ‘On March |. Jeremy an Jenna contbued mereandie of #22000 and P3000 respectively Between Mare | and Jue 1 Alarie fad ventre merchaniseon nest Fer P80O.D0 of which P768.000 was cole alowed snes acount of 7195200 out of jit ‘enture cath On June I, the venture was trminaed and ursl merckandive on hand ws tured to Jeremy and Jena at he Foloing values: Jeremy, PSO,000, Jena, P3800, Cash element was completed on is dt 15. The oat verte profit ores is_ 6. The cash setlemen received opal by.‘On January 1, 2013, entities A and B each i «2013, em ‘ach acquired 30 percent ofthe ordinary shares that carry voting rights ata general meeting of shareholders of enity C for P300,000. Entities A and B immediately agreed to share control entity over C. For the year ended December 31. 2013, entity C recognized a profit of P400,000. On December 30, 2013. entity C dividend of P15S0,000 for the year 2013. At December 31. 2013. the fair value of each venture clared and paid a However, there is no published price quotation for entity C investment in entity C is P425.000. 1, Assuming Entity A uses fair value method to account for its investment in entity C. how much will be reported as Investment in © ‘on December 31. 2013? 12, How much is the total Income from Tavestment in entity C that Enity A will include in is statement of comprehensive income? for F 30,08 On March 1, 2013, entfies A and B each acquired 30 percent of the ordinary shares that carry voting rights ata general meeting of shareholders of entity C: Entities A and B immediately agreed to share control over ently C. On December 31, 2013. entity C declared a dividend of P100,000 for the 2013. Entity C reported a profit of P80,000 for the year ended December 31, 2013. At December 31 2013. the fair value of investment is P293,000 and costs to sell P3,000. There is no published price quotation for entity C. 12 Entity B uses equity method to account for its investment, the December 31. 2013 balance of Investment in C will bePed Corporation owns 40% Fina statement Ps robe any Ht oe ay ezine meres. I separate i ah tol Maha ee te emanate Separate financial statements 1 Neat ha a a he hot sls 03 teammate as flows: ‘Sorements ot Fee leh es a ove ea eit faoengor Hage nm Poles ecgesion ron Company ‘Sates. » : 00 Sha inte et nome Hon an Copy peer Coweta onion 50000 Dapecao pense ‘enon ‘ota Sherer hom soatn Retmad ering-anny 2013 sano : Ventures 250.000 Daisens son008 Accumultes profs ote Ventre eaiy-December 213 ° Statement of Financial Postion Avot December 3.2013 ° 50.000 30000 Invertones 40.000 tant ‘a.a00 Baidings-net 00.00 Egupment net 180.000 lnenmen i Juan Company ae Tota ats PT wea Fae Accounts payable Pino 100.000 hc tabsies 10 0,000 (Orsinay shares sov.oue . ‘Accumulated profits and Hoses ° = Venture equity 2 Tonal eqaites eke sean sing the euity meted of acconting ot sentune imal fling Nanos st Pde Covpycaion a the ns of 2012: IT. Netincome’ TH Hous Astetems 19 through 22 are based on the following information: oom wn well sngice ofthe shares were incurred ). SME JV Sranuary 1, 2013, SME JV acquired » 35% equity of 7 Corporation for P37.000, SME IY. ‘rstegie financial and operating decisions of Z Corporation, Transaction costs | by SMEIV. "_s ended 2013. Z Corporation recognize’ (On December 31. 2013. Z Corporation declared and paid a dividend of P24,000 for the year ended 20 Profi oF P18,000 for that year. sion techniques SME JV determined. Flite pies quotations do mot exis for the shares of Z Corporation. Using appropriate valuation techniques SME JV. determined, Jent in Z Corporation at December 31, 2013 as P49,000. Costs to sell are estimate fo the fair value of its invest 3 (oF the investments. SME does not prepare consolidated financial statements because it does not have any subsidiary. presented in the statement of comprehensive income for Z Corporation using the fair 19. What is the profit (loss) of SME JV to be value method? meideraat ® te Profit (oss) of SME JV 10 be presented in the statement of comprehensive income for Z Corporation using the cost mode!”