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Exercise 4 - 1
Paulo, Edwin and Marco
Worksheet Summarizing Joint Venture Transactions
May 12 to 26, 2008
Construction of stand
Purchases
Additional purchases
Sales
Stand taken by Edwin
Unsold merchandise taken by Marco
Net profit
Joint Venture
Debit
Credit
P 3,000
30,000
60,000
P153,000
2,000
4,000*
P 93,000
P159,000
66,000
_______
P159,000
P159,000
Paulo
Credit
Debit
P 80,000
Marco
Credit
P 30,000
45,000
P 75,000
1,530
24,000
9,285
P 34,815
P109,815
_______
P109,815
Debit
Credit
P 3,000
P10,000
P33,000
2,000
P 80,000
Distribution of profit:
Permit paid by Paulo
Commission
Balance shared 50%, 10% and 40%
Share in net income
Totals
Cash settlement
Edwin
Debit
5,000
P40,000
P35,000
P10,000
_______
P35,000
______
P35,000
P 9,900
1,857
P11,757
P21,757
13,243
P35,000
4,000
P44,000
P 8,000
_______
P44,000
______
P44,000
P12,000
7,428
P19,428
P27,428
16,572
P44,000
_______
P 80,000
29,815
P109,815
Purchases
Cost of sales (P153,000 / 180%**)
Inventory, end
Value upon which participants can purchase inventory
Value assigned to the inventory taken by Lito
P90,000
85,000
P 5,000
x 80%
P 4,000
Exercise 4 3
Books of Jolly
Books of Bernie
110,000
Joint Venture
Income from JV
Bernie
Sonny
160,000
Sonny
JV Cash
Income from JV
Bernie
78,000
110,000
80,000
40,000
40,000
62,400
10,400
5,200
Jolly
Joint Venture
110,000
Joint Venture
Jolly
Income from JV
Sonny
160,000
Sonny
Jolly
Income from JV
78,000
Books of Sonny
110,000
80,000
40,000
40,000
72,800
5,200
Jolly
Joint Venture
110,000
Joint Venture
Jolly
Bernie
Income from JV
160,000
110,000
80,000
40,000
40,000
Cash
Loss from JV
Bernie
Jolly
62,400
15,600
72,000
150,000
Problem 4-1
Dario, Val, and Rene
Worksheet Summarizing Joint Venture Transactions
August 7 - 10, 2008
Joint Venture
Debit
Credit
1,000
10,000
500
15,000
45,000
Construction of stand
Purchases
Payment of permit to operate
Additional purchases
Sales
Fire extinguishers divided among venturers
Unsold merchandise taken by Dario
26,500
19,759
46,250
Net profit
Distribution of profit:
Cleaning of lawn of Rene
Commission
Balance -75% to Dario and 25% to Val
Totals
Cash settlement
1,250
46,250
Dario
Debit
Debit
Rene
Credit
Debit
Credit
500
10,000
15,000
3,333
1,250
19,583
5,000
20,000
3,333
21,000
23,333
5,000
6,000
938
27,938
23,333
27,938
23,333
8,000
312
13,312
10,020
23,333
10,000
3,334
10,000
13,334
10,500
46,250
19,583
8,355
27,938
P25,000
22,500
P 2,500
X 50%
P 1,250
Val
Credit
P 1,000
10,000
500
4,000
13,334
1,666
15,000
15,000
15,000