Revenue and Joint Venture
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
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