On 30 June 2013, Perkins Ltd, Thorpe Ltd and Hackett Ltd entered into a joint venture operation to produce apparel and related products for the Australian national swimming team. The venturers equally share in output and costs. On the same date, the recorded amounts of each venturer's contributions are as follows:

Assume that agreed values equal recoverable amount and no revaluations have occurred.
Which of the following combinations correctly indicates the effects on the statement of financial position and statement of financial performance of Perkins Ltd, respectively, after processing the journal entries to account for this joint venture arrangement?

Question

On 30 June 2013, Perkins Ltd, Thorpe Ltd and Hackett Ltd entered into a joint venture operation to produce apparel and related products for the Australian national swimming team. The venturers equally share in output and costs. On the same date, the recorded amounts of each venturer's contributions are as follows:

Assume that agreed values equal recoverable amount and no revaluations have occurred.
Which of the following combinations correctly indicates the effects on the statement of financial position and statement of financial performance of Perkins Ltd, respectively, after processing the journal entries to account for this joint venture arrangement?

Quizplus · Accepted Answer

The Answer of On 30 June 2013, Perkins Ltd, Thorpe Ltd and Hackett Ltd entered into a joint venture operation to produce apparel and related products for the Australian national swimming team. The venturers equally share in output and costs. On the same date, the recorded amounts of each venturer's contributions are as follows:

Assume that agreed values equal recoverable amount and no revaluations have occurred.
Which of the following combinations correctly indicates the effects on the statement of financial position and statement of financial performance of Perkins Ltd, respectively, after processing the journal entries to account for this joint venture arrangement?