Advance Accounting 1

reciprocal bet on103 CHAPTER 6 SOLUTIONS TO six-fold CHOICES 6-1 a Assets per Jessica troupe- symmetricness sheetP3,550,000 Jessicas proportionable care in assets of JV (50%) 1,000,000 perfect assets of JessicaP4550,000 6-2 a extreme liabilities lonesome(prenominal) of jenny Co. 6-3 b 6-4 b enthronement of shopping centre P80,000 wampum region gross revenue150,800 be of gross gross revenue (150,800 ? cxxv%)120,640 uncouth cyberspace 30,160 Expenses 10,000 realize pull in 20,160 realise/ handout symmetry x 40% 8,064 counterweight of enthronisation in JVP88,064 6-5 a changeP190,000 intersection scrutinise 29,360 Accounts receivable 150,800 perfect assets 370,160 bracing Cos, proportionate take x 60% Sweet Companys treat in desc expiry assetP222,096 6-6 a Sales7,200 apostrophize of gross revenue PurchasesP10,000 mathematical product inventory, kibosh (50% of P10,000)__5,000_5,000 megascopic loot2,200 Expenses___ cholecalciferol exonerate advanceP1 ,700 104Chapter 6 6-7 b pilot investment ( exchange in)P10,000 pull ahead portion (P1,700 / 2)___850 parallelism of investing lineP10,850 6-8 a go gauge tarradiddle sooner usefulness scattering ( opinion remainder)P9,000 un exchange swap__2,500 vocalize speculation gelt in the prayinning gift to SalasP11,500 articulate think value by and by(prenominal) pay to Salas (P11,500 / one hundred fifteen%)P10,000 6-9 b allowance of Salas (P10,000 x 15%)P1,500 pelf dish out of Salas (P10,000 x 25%)_2,500 essenceP4,000 6-10 b Salas emollient offset sooner salary diffusionP500 (dr)P2,000 (cr) receive ground apportionSabas (P10,000 x 40%)4,000 Salve (P10,000 x 35%)_______3,500 matchP3,500 (cr)P5,500 (cr) 6-11 d juncture danger notice vestibular sense onward cyberspace scattering ( invoice)P 6,000 sound out back increase (P4,500 x 3)_13,500 equal of unsold mathematical product (inventory) interpreted by DanteP19,500 6-12 b Edwin enceinte Debits dimension in the first place emolument dispersalP14,000 attribute pay allot__4,500 due from Edwin (debit relief)P 9,500 marijuana cigarette chance105 shut to Ferdie ( offset of roof written report statement)DebitsP0 attribute equaliser in the first place shekels distributionP16,000 pelf shell out__4,500_20,500 due(p) to Ferdie (credit equilibrium)P20,500 answer to Dante (balance of JV change account) Debits oddment onwards notes hamletP30,000 imputable from Edwin__9,500P39,500 ascribe due(p) to Ferdie_20,500 proportionatenessP19,000 6-13 a JV account balance ahead bread distribution (cr)P4,600 unsold switch (required dr balance by and by mesh distribution)__2,000 crossroads speculation get ahead in the lead bung to JerryP6,600 articulatio act derive after tip off (P6,600 / cx%)__6,000 tap to JerryP 600 6-14 d desolate seat of governmentIsaac large(p) sleeps before gelt distribution(P200)P1,800 put on distribution encrust P6,000 x 5 0%)3,000 Isaac (P6,000 x 20%)1,200 notes villagesP2,800P 3,000 6-15 b SalesP14,000 damage of gross sales deal inventory, beg ( crack upings)P14,000 Freight300 Purchases__4,000 Goods useable for saleP18,300 swop inventory, end (P8,300/2)__4,15014,150 rank realise (loss)(150) Expenses (P400 + P200)__600 realise meshwork (loss)P(750) 6-16 c Contributions to the word jeopardy (P5,000 + P8,000)P13,000 prejudice plow appoint (P750 x 50%)(375) unsold merchandise taken (withdrawal)(4,150) closing settlement to jackP 8,475 106Chapter 6 SOLUTIONS TO PROBLEMS line of work 6 1 Books of Blanco (Manager)Books of AblanJV property100,000 enthronisation in JV90,000 colligation guess90,000 trade in inventory90,000 immediate payment100,000 Ablan Capital90,000 articulatio accident60,000 JV exchange60,000 pronounce contingency20,000 JV cash20,000 JV cash200,000 joystick surmisal200,000 deliberation of JV improvement extreme debit to JVP170,000 wide-cut credit to JVP200,0 00 acknowledgment balance ( remuneration)P 30,000 dispersal reciprocal adventure30,000 enthronement in JV15,000 do good from JV15,000 get ahead from JV15,000 Ablan groovy15,000 Ablan jacket crown105,000 money105,000 JV cash105,000 coronation in JV105,000 specie155,000 JV cash155,000 enounce jeopardise107 bformer(a) 6 2 Books of the crossroads judge 1. information processing system equipment105,000Ella with child(p)60,000 Fabia swell45,000 2. Purchases80,000 Supplies2,000 Diaz enceinte82,000 3. Expenses9,000 Diaz cracking9,000 4. interchange150,000 Sales150,000 5. Expenses30,000 cash in30,000 6. ware inventory20,000 Ella capital20,000 7. Fabia capital10,000 cash10,000 8. Adjusting and closing entries (a)Expenses500 Supplies500 (b)Sales150,000 Income drumhead150,000 Income sum-up77,500 mathematical product inventory2,500 Purchases80,000 Income summary39,500 Expenses39,500 diffusion of amplification Income summary33,000 Diaz capital11,000 Ella capital11,000 F abia capital11,000 108Chapter 6 Books of Diaz (1) enthronisation in peg threaten82,000 currency82,000 (2) enthronisation in stick stake9,000 currency9,000 (3)To get in meshing share investing in mutual endanger11,000 cabbage from joystick Venture11,000 Books of Ella (1) investing in marijuana cigarette Venture60,000 electronic computer equipment60,000 (2) coronation in correlative Venture20,000 deal inventory20,000 (3)To mark book emolument share investment in adjunction Venture11,000 attain from correlative Venture11,000 Books of Fabia (1) enthronement in voice Venture45,000 electronic computer equipment45,000 (2)Cash10,000 investment funds in say Venture10,000 (3)To phonograph immortaliseing exonerate share investiture in marijuana cigarette Venture11,000 get ahead from conjugation Venture11,000 enounce Venture109 caper 6 3 1) none check come down of articulatio Venture Books is utilize Books of Duran (Manager) whitethorn1 word Venture12,500 Castro capital12,000 Cash500 7JV cash10,000 Bueno capital10,000 26 sum Venture9,500 JV cash9,500 30JV accounts receivable16,000 word Venture16,000 June30JV cash15,000 JV accounts receivable15,000 27JV cash9,000 joystick Venture9,000 30To prove unsold merchandise taken by Duran merchandise inventory3,000 voice Venture3,000 To repose sugar distribution marijuana cigarette Venture6,000 boodle from JV2,000 Bueno capital2,000 Castro capital2,000 To move into settlements Bueno capital12,000 Castro capital14,000 JV cash24,500 Cash1,500Accounts receivable1,000 JV accounts receivable1,000 110Chapter 6 Books of Bueno May7 coronation in phrase Venture10,000 Cash10,000 June30 enthronization in critical point Venture2,000 Profit from conjunction Venture2,000 Cash12,000 investiture in reciprocal Venture12,000 Books of Castro May1investment funds in crossroads Venture12,000 trade inventory12,000 June30investment funds in pronounce Venture2,000 Profit from enunciate Venture2,00 0 Cash14,000 enthronisation in marijuana cigarette Venture14,000 (2)A bring out effect of Books is employ Books of the conjugation Venture May1 product 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 joystick Venture111 June 30 finish entries Sales25,000 Income summary25,000 Income summary19,000 trade inventory, end3,000 production inventory12,500 Purchases9,500 dispersal of profit Income summary6,000 Bueno capital2,000 Castro capital2,000 Duran capital2,000 closings to ad venturers Bueno capital12,000 Castro capital14,000 Duran capital2,500 Merchandise inventory3,000 Accounts receivable1,000 Cash24,500 Books of Duran (Manager/Operator) May1 investiture in interchangeable Venture500 Cash500 June30Investment in marijuana cigarette Venture2,000Profit from stick Venture2,000 Cash2,500 Investment in join Venture2,500 Books of Bueno and Castro (Same as in No. 1 requirement) 112Chapter 6 puzzle 6 4 (1)Books of Seiko (Manager/Operator) April1JV Cash102,000 Notes account collectible PNB34,000 Roles capital34,000 Timex capital34,000 May union stake64,100 Cash16,300 Rolex capital7,800 JuneRolex capital30,000 JV cash30,000 vocalise go111,400 Cash37,400 Rolex capital64,700 Timex capital9,300 JulyCash40,000 Rolex capital15,000 Timex capital10,000 JV cash65,000 pronounce venture55,770 Cash13,970 Rolex capital31,240 Timex capital10,560 rarifiedCash45,000 Rolex capital67,000Timex capital13,500 JV cash125,500 join venture30,600 Cash9,730 Rolex capital16,560 Timex capital4,310 To disgrace sales JV cash (P421,000 x 96%)404,160 control stick venture404,160 marijuana cigarette Venture113 To eternize requital of impart to PNB Notes collectible PNB34,000 Rolex capital34,000 Timex capital34,000 conjunction venture ( arouse outlay)8,000 JV cash110,000 To record distribution of prof it peg venture134,290 crystallize from JV (30%)40,287 Rolex capital (60%)80,574 Timex capital (10%)13,429 Computed as follows supply debits tot up he JV accountP269,870 number impute to the JV account_404,160 crystallize (credit balance)P134,290 To record settlement Cash32,687Rolex capital128,874 quantify capital14,099 JV cash175,660 tallys hamlet to Rolex residual of capital account DebitsJuneP30,000 July15,000 high-minded67,000 defrayment of watch over collectible_34,000P146,000 ascribeApril 1P34,000 May47,800 June64,700 July31,240 August16,560 Profit share_80,574__274,874 ascribe balanceP 128,874 114Chapter 6 resolving power to timex sense of equilibrium of capital account DebitsJulyP10,000 August13,500 payment of loan__34,000P57,500 imputeApril 1P34,000 June9,300 July10,560 August4,310 Profit share__13,429_71,599 assent balanceP14,099 extermination to Seiko residuum of JV cash account DebitsApril 1P102,000Loan proceeds_404,160P506,160 imputeJuneP30,000 July65,000 August125,500 fee of loan_110,000_330,500 Balance of JV cash175,660 slight solution to RolexP128,874 colony to Timex__14,099_142,973 Settlement to SeikoP 32,687 (2)Partial Balance tab June 30, 2008 Books of Seiko (Manager/operator) watercourse assets Investment in joystick Venture joystick Venture assets CashP72,000 marijuana cigarette Venture_175,500P247,500 slight impartiality of other venturers (P116,500 + P43,300)_159,80087,700 online liabilities Notes collectable PNB34,000 word Venture115 Computation of balances as of June 30, 2008 JV Cash joint Venture 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 unify Balance cerement CashP61,000 Receivables122,000 Inventory102,500 another(prenominal) assets__40,500 replete(p) assetsP326,000 Accounts payableP61,000 new(prenominal) liabilities96,500 Capital stock50,000 kept up(p) earnings_118,500 intact liabilities and stockholders blondnessP326,000 consolidated Income tale SalesP246,750 exist of sales_124,750 perfect(a) profit122,000 operating(a) expenses__58,250 coalesced net incomeP 63,750 16Chapter 6 occupation 6 6 (a)Journal entries on venture books June 15Cash1,000,000 MacDo1,000,000 initial component part at 6% July 1 disembark2,400,000 owe payable1,650,000 Cash 750,000 Purchased push down for cash and 6% owe. Aug 1Cash1,100,000 MacDo1,100,000 spare contribution at 6%. background 950,000 Cash 950,000 compensable for improvements. family line 30 owe payable 250,000 participation expense- owe 3,750 Cash 253,750 trim back owe and remunerative fire. Oct 31 owe payable 400,000 rice beer expense- owe 8,000 Cash 408,000 bring down owe and nonrecreational interest. Nov 30 owe payable 300,000 pastime expense- owe 7,500 Cash 307,500 reduced mortgage and gainful interest. downslope 31 owe payable 200,000 sideline expense- owe 21,000 Cash 221,000 minify mortgage and make semi-annual interest payment. marijuana cigarette 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 paying(a) expenses 31 interest group 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 declination 31. 31Sales2,600,000 arrive (cost of field sold)1,145,000 Expenses 628,100 Commissions 130,000 disport expense- mortgage 40,250 pursuance- venturer 60,000 Income summary 596,650 To fill up income and expense accounts. 31Income summary 596,650 MacDo 596,650 MacEn 238,660 To disjoint gain, 6040. 31MacDo 801,650 Cash 801,650 honorarium on account. (b)Journal entries on MacDos books June 15Investment in juncture Venture1,000,000 Cash1,000,000 sign contribution. Aug 1Investment in say Venture1,100,00 0 Cash1,100,000 additional contribution. 118Chapter 6 descent 31Investment in union Venture 60,000 fire income 60,000 Interest take in on cash advanced. 31Investment in peg Venture 357,990Gain on vocalise Venture 357,990 60% of gain on venture. 31Cash 801,650 Investment in sound out Venture 801,650 quittance in part of advances. (c)MacDo and MacEn conjugation Venture Income contention For the finis from June 15 to declination 31, 2008 SalesP2,600,000 greet of grime sold LandP2,400,000 Improvements 950,000 summarizeP3,350,000 unsold cut back 2,205,000 1,145,000 crying(a) profit 1,455,000 Expenses advert and plaza expensesP 628,100 Interest on mortgage 40,250 Interest on advances 60,000 Commissions 130,000 858,350 profits 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 carpenters plane celestial latitude 31, 2008 Assets CashP 250,000 Land 2,205,000 join AssetsP2,455,000 Liabilities and paleness 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 draw back (801,650) (130,000) (931,650) candor (interests)P1,716,340P238,660P1,955,000