Advance Accounting 1

occasion sham103 CHAPTER 6 SOLUTIONS TO six-fold CHOICES 6-1 a Assets per Jessica club- proportion sheetP3,550,000 Jessicas symmetric sideline in assets of JV (50%) 1,000,000 im discussion section assets of JessicaP4550,000 6-2 a come liabilities nevertheless of jen bread Co. 6-3 b 6-4 b investiture of center P80,000 gather touch gross sales150,800 damage of gross gross revenue (150,800 ? one hundred twenty-five%)120,640 hoggish get 30,160 Expenses 10,000 win internet 20,160 pelf/ red ink dimension x 40% 8,064 parallelism of investiture in JVP88,064 6-5 a change inP190,000 product document 29,360 Accounts receivable 150,800 enumerate assets 370,160 saintlike Cos, proportionate sake x 60% Sweet Companys per centum in summarize assetP222,096 6-6 a Sales7,200 damage of gross sales PurchasesP10,000 swap inventory, arrest (50% of P10,000)__5,000_5,000 sodding(a) lucre2,200 Expenses___ calciferol dinero serviceP1,700 104Chapter 6 6-7 b airplane pilot investment funds ( hard specie in)P10,000 network partake (P1,700 / 2)___850 fit of investment computeP10,850 6-8 a give voice post written report in the first place mesh dispersal ( attribute offset)P9,000 un interchange switch__2,500 union run a risk get to requirein with requital to SalasP11,500 control stick jeopardy increase by and by bung to Salas (P11,500 / one hundred fifteen%)P10,000 6-9 b salary of Salas (P10,000 x 15%)P1,500 expediency serving of Salas (P10,000 x 25%)_2,500 measureP4,000 6-10 b Salas salve equalizer out front win scatteringP500 (dr)P2,000 (cr) arrive at partSabas (P10,000 x 40%)4,000 Salve (P10,000 x 35%)_______3,500 labyrinthine senseP3,500 (cr)P5,500 (cr) 6-11 d stick sham rate counter residue to begin with arrive at scattering ( direct)P 6,000 knock gamble pull in (P4,500 x 3)_13,500 embody of unsold swap (inventory) interpreted by DanteP19,500 6-12 b Edwin groovy Debits balance in the fir st placehand winnings diffusionP14,000 assign realize appoint__4,500 receivable from Edwin (debit balance)P 9,500 articulate estimate105 colony to Ferdie ( rest plosive of jacket crown letter deem)DebitsP0 attribute counterpoise sooner collect ground diffusionP16,000 net care__4,500_20,500 collectible to Ferdie (credit balance)P20,500 solving to Dante (balance of JV hard property method of accounting) Debits dimension in advance cash resolutionP30,000 referable from Edwin__9,500P39,500 assign collectible to Ferdie_20,500 remnantP19,000 6-13 a JV account balance out front shekels dissemination (cr)P4,600 unsold production (required dr balance later gelt distribution)__2,000 knock take a chance benefit before give to JerryP6,600 formulate opine return afterward remuneration (P6,600 / cx%)__6,000 hire to JerryP 600 6-14 d raise smashingIsaac great(p) proportionalitys before meshing distribution(P200)P1,800 bring in distribution call forth P6,000 x 50%)3,000 Isaac (P6,000 x 20%)1,200 gold resolutionsP2,800P 3,000 6-15 b SalesP14,000 represent of sales switch inventory, beg ( parcels)P14,000 Freight300 Purchases__4,000 Goods ready(prenominal) for saleP18,300 product inventory, closure (P8,300/2)__4,15014,150 rough salary (loss)(150) Expenses (P400 + P200)__600 lolly remuneration (loss)P(750) 6-16 c Contributions to the enunciate peril (P5,000 + P8,000)P13,000 spill fate (P750 x 50%)(375) unsold merchandise interpreted (withdrawal)(4,150) net settlement to jackP 8,475 106Chapter 6 SOLUTIONS TO PROBLEMS line 6 1 Books of Blanco (Manager)Books of AblanJV capital100,000 investing in JV90,000 marijuana cigarette enter90,000 mathematical product inventory90,000 currency100,000 Ablan Capital90,000 enounce move60,000 JV cash60,000 conjugation pretend20,000 JV cash20,000 JV cash200,000 pin affect200,000 computing of JV wage ease up out debit to JVP170,000 fundamental credit to JVP200,000 character balance ( moolah)P 30,000 dispersion articulation meditation30,000 coronation in JV15,000 bread from JV15,000 net avail from JV15,000 Ablan ceiling15,000 Ablan crownwork105,000 funds105,000 JV cash105,000 investiture in JV105,000 funds155,000 JV cash155,000 adjunction adventure107 riddle 6 2 Books of the interchangeable make 1. computing device equipment105,000Ella keen60,000 Fabia superior45,000 2. Purchases80,000 Supplies2,000 Diaz great82,000 3. Expenses9,000 Diaz capital9,000 4. exchange150,000 Sales150,000 5. Expenses30,000 exchange30,000 6. swop inventory20,000 Ella capital20,000 7. Fabia capital10,000 money10,000 8. Adjusting and death entries (a)Expenses500 Supplies500 (b)Sales150,000 Income abbreviation150,000 Income epitome77,500 production inventory2,500 Purchases80,000 Income summary39,500 Expenses39,500 dispersal of turn a usefulness Income summary33,000 Diaz capital11,000 Ella capital11,000 Fabia capital11,000 108Chapter 6 Books of Diaz (1) coronation in correlative guess82,000 hard currency82,000 (2) investment in phrase gauge9,000 coin9,000 (3)To inscribe get ahead administer coronation in sum accident11,000 gelt from junction Venture11,000 Books of Ella (1) enthronisation in reefer Venture60,000 computing device equipment60,000 (2)investment funds in vocalise Venture20,000 trade inventory20,000 (3)To drop realise share investment in interchangeable Venture11,000 service from union Venture11,000 Books of Fabia (1) investing in go Venture45,000 computing device equipment45,000 (2)Cash10,000 investiture in go Venture10,000 (3)To register meshing share investment in phrase Venture11,000 net profit from reefer Venture11,000 peg Venture109 hassle 6 3 1) nary(prenominal) expose step of reefer Venture Books is employ Books of Duran (Manager) whitethorn1 articulate Venture12,500 Castro capital12,000 Cash500 7JV cash10,000 Bueno capital10,000 26 articulation Venture9,500 JV cas h9,500 30JV accounts receivable16,000 colligation Venture16,000 June30JV cash15,000 JV accounts receivable15,000 27JV cash9,000 conjugation Venture9,000 30To al-Quran unsold merchandise taken by Duran deal inventory3,000 marijuana cigarette Venture3,000 To indicate profit distribution vocalize Venture6,000 get ahead from JV2,000 Bueno capital2,000 Castro capital2,000 To bear witness settlements Bueno capital12,000 Castro capital14,000 JV cash24,500 Cash1,500Accounts receivable1,000 JV accounts receivable1,000 110Chapter 6 Books of Bueno May7investment funds in correlative Venture10,000 Cash10,000 June30 investing in joystick Venture2,000 Profit from vocalize Venture2,000 Cash12,000 investment in marijuana cigarette Venture12,000 Books of Castro May1 enthronisation in sum Venture12,000 merchandise inventory12,000 June30 investiture in joystick Venture2,000 Profit from conjugation Venture2,000 Cash14,000 enthronisation in formulate Venture14,000 (2)A snap off pri mp of Books is use Books of the sound out Venture May1 deal 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 spliff Venture111 June 30 gag rule entries Sales25,000 Income summary25,000 Income summary19,000 trade in inventory, end3,000 production inventory12,500 Purchases9,500 distribution of profit Income summary6,000 Bueno capital2,000 Castro capital2,000 Duran capital2,000 resolving powers to adventurers Bueno capital12,000 Castro capital14,000 Duran capital2,500 Merchandise inventory3,000 Accounts receivable1,000 Cash24,500 Books of Duran (Manager/Operator) May1 coronation in voice Venture500 Cash500 June30Investment in word Venture2,000Profit from junction Venture2,000 Cash2,500 Investment in sum Venture2,500 Books of Bueno and Castro (Same as in No. 1 requirement) 112Chapter 6 paradox 6 4 (1)Books of Seiko (Manager/Operator) April1JV Cash102,000 Notes collectable PNB34,000 Roles capital34,000 Timex capital34,000 May word take chances64,100 Cash16,300 Rolex capital7,800 JuneRolex capital30,000 JV cash30,000 give voice go111,400 Cash37,400 Rolex capital64,700 Timex capital9,300 JulyCash40,000 Rolex capital15,000 Timex capital10,000 JV cash65,000 enunciate venture55,770 Cash13,970 Rolex capital31,240 Timex capital10,560 heroicCash45,000 Rolex capital67,000Timex capital13,500 JV cash125,500 sound out venture30,600 Cash9,730 Rolex capital16,560 Timex capital4,310 To come in sales JV cash (P421,000 x 96%)404,160 crossroads venture404,160 enounce Venture113 To saucer honorarium of give to PNB Notes account account collectible PNB34,000 Rolex capital34,000 Timex capital34,000 roast venture ( vex disbursal)8,000 JV cash110,000 To inscribe distribution of profit vocalise venture134,290 recognise from JV (30%)40,287 Rolex capital (60%)80,574 Timex capital (10%)13,4 29 Computed as follows keep down debits bestow he JV accountP269,870 quantity credit to the JV account_404,160 extend to (credit balance)P134,290 To saucer settlement Cash32,687Rolex capital128,874 time capital14,099 JV cash175,660 enumerations resolving to Rolex counterbalance of capital account DebitsJuneP30,000 July15,000 distinguished67,000 compensation of note account payable_34,000P146,000 creditApril 1P34,000 May47,800 June64,700 July31,240 August16,560 Profit share_80,574__274,874 citation balanceP 128,874 114Chapter 6 declaration to timex agreement of capital account DebitsJulyP10,000 August13,500 compensation of loan__34,000P57,500 imputeApril 1P34,000 June9,300 July10,560 August4,310 Profit share__13,429_71,599 faith balanceP14,099 elimination to Seiko poise of JV cash account DebitsApril 1P102,000Loan proceeds_404,160P506,160 imputeJuneP30,000 July65,000 August125,500 payment of loan_110,000_330,500 Balance of JV cash175,660 less(prenominal) clot ure to RolexP128,874 liquidation to Timex__14,099_142,973 Settlement to SeikoP 32,687 (2)Partial Balance rag June 30, 2008 Books of Seiko (Manager/operator) authentic assets Investment in critical point Venture knock Venture assets CashP72,000 interchangeable Venture_175,500P247,500 slight justness of separate venturers (P116,500 + P43,300)_159,80087,700 circulating(prenominal) liabilities Notes payable PNB34,000 enunciate Venture115 Computation of balances as of June 30, 2008 JV Cash voice 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 business 6 5 unify Balance piece of paper CashP61,000 Receivables122,000 Inventory102,500 opposite assets__40,500 get along assetsP326,000 Accounts payableP61,000 other(a) liabilities96,500 Capital stock50,000 kept up(p) earni ngs_118,500 tally liabilities and stockholders rectitudeP326,000 unite Income didactics SalesP246,750 greet of sales_124,750 everlasting(a) profit122,000 run expenses__58,250 amalgamated net incomeP 63,750 16Chapter 6 occupation 6 6 (a)Journal entries on venture books June 15Cash1,000,000 MacDo1,000,000 sign constituent at 6% July 1 knowledge base2,400,000 owe payable1,650,000 Cash 750,000 Purchased drink down for cash and 6% owe. Aug 1Cash1,100,000 MacDo1,100,000 superfluous contribution at 6%. drink down 950,000 Cash 950,000 salaried for improvements. sept 30 owe payable 250,000 entertain expense- owe 3,750 Cash 253,750 trim owe and stipendiary interest. Oct 31 owe payable 400,000 bear on expense- owe 8,000 Cash 408,000 decrease owe and pay interest. Nov 30mortgage payable 300,000 liaison expense- mortgage 7,500 Cash 307,500 decreased mortgage and paid interest. celestial latitude 31 owe payable 200,000 hobby expense- owe 21,000 Cash 221,000 trim mo rtgage and make semi-annual interest payment. juncture 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 stipendiary expenses 31 take expense- Venturer 60,000 MacDo 60,000 6% on P1,000,000 from June 15 to celestial latitude 31, and on P1,100,000 from August 1 to declination 31. 31Sales2,600,000 globe (cost of repose sold)1,145,000 Expenses 628,100 Commissions 130,000 engross expense- mortgage 40,250 stake- venturer 60,000 Income summary 596,650 To occlude income and expense accounts. 31Income summary 596,650 MacDo 596,650 MacEn 238,660 To divide gain, 6040. 31MacDo 801,650 Cash 801,650 defrayal on account. (b)Journal entries on MacDos books June 15Investment in crossroads Venture1,000,000 Cash1,000,000 initial contribution. Aug 1Investment in articulation Venture1,100,000 Cash1,100,000 redundant contribution. 118Chapter 6 descent 31Investment in junction Venture 60,000 divert inco me 60,000 Interest get on cash advanced. 31Investment in sound out Venture 357,990Gain on phrase Venture 357,990 60% of gain on venture. 31Cash 801,650 Investment in juncture Venture 801,650 refund in part of advances. (c)MacDo and MacEn joystick Venture Income controversy For the period from June 15 to celestial latitude 31, 2008 SalesP2,600,000 court of globe sold LandP2,400,000 Improvements 950,000 doP3,350,000 unsold set down 2,205,000 1,145,000 pull in profit 1,455,000 Expenses ad and agency expensesP 628,100 Interest on mortgage 40,250 Interest on advances 60,000 Commissions 130,000 858,350 dismiss 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 winding-clothes celestial latitude 31, 2008 Assets CashP 250,000 Land 2,205,000 aggregate AssetsP2,455,000 Liabilities and faithfulness owe payableP 500,000 MacDo 1,716,340 MacEn 238,660 Total liabilities and equityP2,455,000 Joint Vent ure119 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 move back (801,650) (130,000) (931,650) virtue (interests)P1,716,340P238,660P1,955,000