Show solution in good accounting form.a. Assuming there is no separate records maintained, compute for the Joint Operation Account of Medium, before distributing net incomeb. Assuming there is no separate records maintained, compute for the profit after management fee and bonusc. Assuming there is no separate records maintained, compute for cash settlement for Large.d. Assuming there is separate records maintained for the joint operation, compute for the Joint Operation Account of small, before distributing net incomee. Assuming there is separate records maintained for the joint operation, compute for the cash settlement for Medium Small, Medium and Large formed a joint operation. The following were the jointoperation transactions:> Small transferred cash of P100,000 to Large, the appointed manager,representing Small's contribution> Medium contributed inventories worth P120,000.Large contributed cash of P80,000Large purchased inventories worth P160,000 and paid freight of P20,000 usingthe cash contributions➤ Large made cash sales of P900,000Large paid expenses of P240,000 from Joint Operation-cashAll inventories were sold except one-third from large's purchases. Large was chargedfor the cost of the unsold inventory. The joint operators agreed on the following:a. Large is entitled to a management fee of P6,000 and a bonus of 20% of profitafter management fee and bonus.b. Any remaining profit or loss is divided equally.

You have posted multiple-pat questions, so s per our policy only first three sub parts are answered.…

Answered: Show solution in good accounting form.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Show solution in good accounting form.

a. Assuming there is no separate records maintained, compute for the Joint Operation Account of Medium, before distributing net income

b. Assuming there is no separate records maintained, compute for the profit after management fee and bonus

c. Assuming there is no separate records maintained, compute for cash settlement for Large.

d. Assuming there is separate records maintained for the joint operation, compute for the Joint Operation Account of small, before distributing net income

e. Assuming there is separate records maintained for the joint operation, compute for the cash settlement for Medium

Small, Medium and Large formed a joint operation. The following were the joint
operation transactions:
> Small transferred cash of P100,000 to Large, the appointed manager,
representing Small's contribution
> Medium contributed inventories worth P120,000.
Large contributed cash of P80,000
Large purchased inventories worth P160,000 and paid freight of P20,000 using
the cash contributions
➤ Large made cash sales of P900,000
Large paid expenses of P240,000 from Joint Operation-cash
All inventories were sold except one-third from large's purchases. Large was charged
for the cost of the unsold inventory. The joint operators agreed on the following:
a. Large is entitled to a management fee of P6,000 and a bonus of 20% of profit
after management fee and bonus.
b. Any remaining profit or loss is divided equally.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions