For nos. 27 to 30 . JULIO COMPANY and AUGUSTO COMPANY are participants in a...
80.2K
Verified Solution
Link Copied!
Question
Accounting
For nos. 27 to 30 . JULIO COMPANY and AUGUSTO COMPANY are participants in a joint arrangement sharing control and profits equally. They contributed P500,000 each. JULIO's contribution is cash. AUGUSTO contributed an equipment with a carrying value of P480,000. The equipment has a ten-year remaining life when contributed. They established APRIL MAY CORPORATION on January 2, 2023 to carry on the joint undertaking, thus JULIO AND AUGUSTO have equal rights over the net assets of the business. The following information is relevant in answering the various questions: 27. How much total amount of asset(s) will AUGUSTO COMPANY recognize on January 2,2023 to record its investment? 28. At what amount will the investment of AUGUSTO COMPANY be shown in its December 31, 2023 balance sheet? 29. At what amount will JULIO COMPANY report its Retained Earnings at December 31, 2023? 30. The journal entry AUGUSTO COMPANY will record its investment on January 2,2023 will include a. a debit to Cash in JO of P250,000 b. a debit to Equipment in JO of P240,000 c. a credit to gain on sale of P20,000 d. a credit to gain on sale of P10,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
For nos. 27 to 30 . JULIO COMPANY and AUGUSTO COMPANY are participants in a joint arrangement sharing control and profits equally. They contributed P500,000 each. JULIO's contribution is cash. AUGUSTO contributed an equipment with a carrying value of P480,000. The equipment has a ten-year remaining life when contributed. They established APRIL MAY CORPORATION on January 2, 2023 to carry on the joint undertaking, thus JULIO AND AUGUSTO have equal rights over the net assets of the business. The following information is relevant in answering the various questions: 27. How much total amount of asset(s) will AUGUSTO COMPANY recognize on January 2,2023 to record its investment? 28. At what amount will the investment of AUGUSTO COMPANY be shown in its December 31, 2023 balance sheet? 29. At what amount will JULIO COMPANY report its Retained Earnings at December 31, 2023? 30. The journal entry AUGUSTO COMPANY will record its investment on January 2,2023 will include a. a debit to Cash in JO of P250,000 b. a debit to Equipment in JO of P240,000 c. a credit to gain on sale of P20,000 d. a credit to gain on sale of P10,000 