Revenue and Joint Venture

Topics: Revenue, Generally Accepted Accounting Principles, Income statement Pages: 53 (1581 words) Published: September 22, 2013
Exercise 4-2

Books of Alvin, Managing Partner

Feb.
12
Joint Venture
10,000

Cash

10,000

14
Joint Venture
2,000

Larry

2,000

15
Cash
9,000

Larry
7,500

Joint Venture

16,500

20
Cash
3,000

Joint Venture

3,000

20
Joint Venture
7,500

Income from Joint Venture

4,287.50

Larry

3,212.50

10% commission on net purchases to Alvin

25% commission on own sales

20
Cash
2,287.50

Larry

2,287.50

Books of Larry
Feb.
12
Joint Venture
10,000

Alvin

10,000

14
Joint Venture
2,000

Cash

2,000

15
Cash
7,500

Alvin
9,000

Joint Venture

16,500

20
Alvin
3,000

Joint Venture

3,000

20
Joint Venture
7,500

Alvin

4,287.50

Income from Joint Venture

3,212.50

10% commission on net purchases to Alvin

25% commission on own sales

20
Alvin
2,287.50

Cash

2,287.50

Problem 4-2

Requirement 1
Books of Roland, Managing Partner

1.
Joint Venture
40,300,000

Greg

19,500,000

Medel

13,000,000

Land

7,800,000

2.
Joint Venture
3,000,000

Cash

3,000,000

Improvements on land

3.
Joint Venture Cash
35,400,000

Joint Venture

35,400,000

Sales by venturers.

4.
Joint Venture Cash
14,300,000

Joint Venture

14,300,000

Sales by salesmen

5.
Joint Venture
684,000

Joint Venture Cash

684,000

Venture expenses

6.
Joint Venture
72,000

Income from Joint Venture

72,000

Salaries to Roland as managing partner

Joint Venture
3,540,000

Income from Joint Venture

490,000

Greg

1,280,000

Medel

1,770,000

10% commission on own sales

Joint Venture
2,104,000

Income from Joint Venture

701,334

Greg

701,333

Medel

701,333

Balance of profit divided equally

7.
Greg
21,481,333

Medel
15,471,333

Joint Venture Cash

36,952,666

Final cash settlement

Books of Greg
1.
Joint Venture
40,300,000

Land

19,500,000

Medel

13,000,000

Roland

7,800,000

2.
Joint Venture
3,000,000

Roland

3,000,000

Improvements on land

3.
Roland
35,400,000

Joint Venture

35,400,000

Sales by venturers.

4.
Roland
14,300,000

Joint Venture

14,300,000

Sales by salesmen

5.
Joint Venture
684,000

Roland

684,000

Venture expenses

6.
Joint Venture
72,000

Roland

72,000

Salaries to Roland as managing partner

Joint Venture
3,540,000

Roland

490,000

Income from Joint Venture

1,280,000

Medel

1,770,000

10% commission on own sales

Joint Venture
2,104,000

Roland

701,334

Income from Joint Venture

701,333

Medel

701,333

Balance of profit divided equally

7.
Cash
21,481,333

Medel
15,471,333
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