Problem Solving Test - Joint Arrangement Accounting

Question 1 of 10

1

Three joint operators agree to an arrangement in which they have an equal share in an agricultural joint operation. The work undertaken in setting up the joint operation cost 300,000 and each operator contributed cash. Each operator will need to recognize the followng entry:

Select one of the following:

Cost of Sale 300,000
Cash 300,000
Inventories - Joint Operation 300,000
Cash 300,000
Investment in Joint Venture 300,000
Cash 300,000
Cash - Joint Operation 300,000
Cash 300,000

Explanation

Question 2 of 10

1

Star Cinema and Viva Films had decided to make an arrangement in a movie project entitled: "A Very Special Love" with a 60:40 revenue sharing. There will be no separate vehicle in the arrangement. Viva Films spent 50,000,000 for the production overhead. Star Cinema spent 80,000,000 for the Talent Fees and Salaries and additional 10,000,000 for the distribution and advertising cost.

Box office revenue amounted to 300,000,000.
How much is the net income of Star Cinema from the entire project?

Select one of the following:

180,000,000
90,000,000
150,000,000
160,000,000

Explanation

Question 3 of 10

1

Star Cinema and Viva Films had decided to make an arrangement in a movie project entitled: "A Very Special Love" with a 60:40 revenue sharing. There will be no separate vehicle in the arrangement. Viva Films spent 50,000,000 for the production overhead. Star Cinema spent 80,000,000 for the Talent Fees and Salaries and additional 10,000,000 for the distribution and advertising cost.

Box office revenue amounted to 300,000,000.
How much is the revenue of Viva Films?

Select one of the following:

120,000,000
300,000,000
180,000,000
70,000,000

Explanation

Question 4 of 10

1

Star Cinema and Viva Films had decided to make an arrangement in a movie project entitled: "A Very Special Love" with a 60:40 revenue sharing. There will be no separate vehicle in the arrangement. Viva Films spent 50,000,000 for the production overhead. Star Cinema spent 80,000,000 for the Talent Fees and Salaries and additional 10,000,000 for the distribution and advertising cost.

Box office revenue amounted to 300,000,000.
Depreciation of Star Cinema Production Equipment used in the arrangement amounted to 5,000,000. The 3,000,000 Cost of Administration had been shared by both parties equally.
How much expenses had been made by Star Cinema?

Select one of the following:

96,500,000
95,000,000
90,000,000
81,900,000

Explanation

Question 5 of 10

1

Star Cinema and Viva Films had decided to make an arrangement in a movie project entitled: "A Very Special Love" with a 60:40 profit/loss sharing. There will be a separate vehicle in the arrangement. Viva Films spent 50,000,000 for the production overhead. Star Cinema spent 80,000,000 for the Talent Fees and Salaries and additional 10,000,000 for the distribution and advertising cost.

Box office revenue amounted to 300,000,000.
Depreciation of Star Cinema Production Equipment used in the project amounted to 5,000,000. The 3,000,000 Cost of Administration had been shared by both parties.

How much is the balance of Investment in Joint Venture account of Star Cinema after recording all the transactions above.

Select one of the following:

182,700,000
91,500,000
91,200,000
193,850,000

Explanation

Question 6 of 10

1

Ayala and Robinsons had decided to make a joint arrangement. They decided that a corporation as a separate vehicle shall be made in the arrangement.

Ayala invested 1,000,000. Robinsons invested 3,000,000. Net income for one year amounted to 500,000. Profit sharing is 70:30. 200,000 Cash dividends had been declared and had been distributed in accordance to the ratio of their initial investments. Robinsons had withdrew 100,000 from his investment. Compute the Investment Account Balance of Robinsons after all the transactions above had been accounted.

Select one of the following:

3,000,000
3,150,000
2,900,000
Zero

Explanation

Question 7 of 10

1

Ayala and Robinsons had decided to make a joint arrangement. They decided that a corporation as a separate vehicle shall be made in the arrangement.

Ayala invested 1,000,000. Robinsons invested 3,000,000. Net income for one year amounted to 500,000. Profit sharing is 70:30. 200,000 Cash dividends had been declared and had been distributed in accordance to the ratio of their initial investments. Robinsons had withdrew 100,000 from his investment. How much is the total debits before deducting the total credits of Ayala's Investment in Joint Venture account?

Select one of the following:

1,000,000
1,350,000
350,000
1,400,000

Explanation

Question 8 of 10

1

Ayala and Robinsons had decided to make a joint arrangement. They decided that a corporation as a separate vehicle shall be made in the arrangement.

Ayala invested 1,000,000. Robinsons invested 3,000,000. Net income for one year amounted to 500,000. Profit sharing is 70:30. 200,000 Cash dividends had been declared and had been distributed in accordance to the ratio of their initial investments. Robinsons had withdrew 100,000 from his investment. How much is the total deductions to the Investment in Joint Venture account of Robinsons?

Select one of the following:

150,000
100,000
250,000
300,000

Explanation

Question 9 of 10

1

A, B and C had decided to make a joint operation. A invested Cash of 300,000 and a Equipment of 250,000. B invested 100,000 cash and a building amounted to 1,000,000. C invested inventories amounted to 900,000. The parties agreed to addionally invest cash of 100,000 each.

How much is the Assets of A in the joint operation?

Select one of the following:

300,000
250,000
550,000
650,000

Explanation

Question 10 of 10

1

A, B and C had decided to make a joint operation. A invested Cash of 300,000 and a Equipment of 250,000. B invested 100,000 cash and a building amounted to 1,000,000. C invested inventories amounted to 900,000. The parties agreed to addionally invest cash of 100,000 each.

Revenues earned by the joint operation amounted to 1,000,000. 40% of the revenue was attributed to C. The remaining revenue was distributed to the other parties equally. A spent 20,000 for operating expenses. B spent 80,000 for labor force. C spent 10,000 for other overhead. How much is the net income of A attributable to the joint operation?

Select one of the following:

280,000
300,000
20,00
198,000

	Created by simon_pisano about 9 years ago

Multiple choice type for accounting problems

Problem Solving Test - Joint Arrangement Accounting

Question 1 of 10

Three joint operators agree to an arrangement in which they have an equal share in an agricultural joint operation. The work undertaken in setting up the joint operation cost 300,000 and each operator contributed cash. Each operator will need to recognize the followng entry:

Select one of the following:

Explanation

Question 2 of 10

Select one of the following:

Explanation

Question 3 of 10

Select one of the following:

Explanation

Question 4 of 10

Select one of the following:

Explanation

Question 5 of 10

Select one of the following:

Explanation

Question 6 of 10

Select one of the following:

Explanation

Question 7 of 10

Select one of the following:

Explanation

Question 8 of 10

Select one of the following:

Explanation

Question 9 of 10

Select one of the following:

Explanation

Question 10 of 10

Select one of the following:

Explanation