User Account

All Pages

Compute the share of AA in the expense of the joint operator

Assignment Help Accounting Basics
Reference no: EM132795135

Question - AA, BB and CC sign an agreement to collectively purchase a yacht and to hire a company to manage and operate the yacht on their behalf. The cost involved in running and operating the yacht business and the revenue earned from the pipeline are shared by the three parties based on their ownership percentages. All major operating and financing decisions related to the yacht business must be agreed to by the three companies. The cost of purchasing the yacht was P56M. The yacht has an estimated 20-year useful life with no residual value. The management fee for operating the yacht business for 2020 was P11.2M. Revenue earned from the yacht business in 2020 was P18.48M. AA invested P16.8M for a 30% interest.

Required -

Q1. Compute the share of AA in the revenue of the joint operations in 2020.

a. P1.344M b. P5.544M c. P11.2M d. P16.8M

Q2. Compute the share of AA in the expense of the joint operator for 2020.

a. P0.84M b. P3.36M c. P4.2M d. P5.544M

Q3. Compute the share of AA in the gross profit/net income of the joint operations for 2020.

a. P1.344M b. P5.544M c. P11.2M d. P16.8M

Q4. Compute the ending capital/investment of AA for 2020.

a. P18.144M b. P16.8M c. P1.344M d. NIL

Reference no: EM132795135

Questions Cloud

Which financial statement do find long-term liabilities : List the page number from the most recent Form 10-K where you found long-term liabilities for your company. What types of long-term liabilities does the company
Why government should emphasize economic growth : A. Propose TWO (2) reasons why government should emphasize economic growth as a part of its mandate.
Encouraging the consumption of healthy food : c) Is the government going to be successful in encouraging the consumption of healthy food? Briefly explain.
What is the marginal rate of substitution : Suppose x1 is a "good" and good x2 is a "bad". That is, the consumer is better off with more units of x1, but worse off with more units of x2.
Compute the share of AA in the expense of the joint operator : The management fee for operating the yacht business for 2020 was P11.2M. Compute the share of AA in the expense of the joint operator for 2020
Explain the potential culpability of each party : Explain the potential culpability of each party. Include possible civil or criminal penalties for each party - How could Armstrong have protected himself
Why are carbohydrates considered most valuable energy source : Why are carbohydrates considered our most valuable energy source? And, list all of the various classifications and forms of carbohydrates found in your textbook
Implement a child-care subsidy program : Suppose that the government is currently considering whether to implement a child-care subsidy program for low-income families.
Determining the job-training requirement : There is a debate going on regarding the way that your state links the receipt of welfare benefits to attending job training sessions

Reviews

Write a Review

Accounting Basics Questions & Answers

  Record the impairment of the asset at December

Record the impairment of the asset at December 31, 2019. Besides, prepare the journal entry to record depreciation expense for 2020

  Calculate the expected annual sick-leave expense

Dainty Ltd has an average weekly payroll of $200 000. Calculate the expected annual sick-leave expense for Dainty Ltd (on the basis of average salaries)

  What types of budgeting techniques are used

How does budgeting for a governmental entity differ from a for profit entity? Why? What types of budgeting techniques are used for governmental entities

  Use weighted-ave process costing.

Prepare a cost of production report for current month. Use Weighted-Ave process costing.

  Record the transactions in general journal form

Mar 29 Declared and distributed a 5% stock dividend on the common stock. Record the transactions in general journal form

  Acid-test ratio for the current year

a. What is the acid-test ratio for the current year? b. What is the inventory turnover for the current year? c. What is days' sales in receivables for the current year?

  Calculate total revenue and marginal revenue

Perfectly competitive firm Doggies Paradise Inc. sells winter coats for dogs. Dog coats sell for $72 each. The fixed costs of production are $100.

  What are the provisions in the sarbanes-oxley act

What are the provisions in the Sarbanes-Oxley Act 2002 and the New York Stock Exchange listing requirements that are aimed at improving corporate governance.

  Determine best type of income statement retailer should use

As a Financial Accountant, determine the best type of income statement a retailer should use. Defend your suggestion.

  Calculate the cost of materials used for production

Determine the number of material units needed to produce products X and Y and calculate the cost of materials used for production.

  The equipment has an estimated life of five years and an

assume that sample company purchased factory equipment on january 1 2012 for 60000.the equipment has an estimated life

  How prepare the journal entry to record the impairment loss

Prepare the journal entry to record the impairment loss, if any, and indicate where the loss would be reported in the income statement.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd