Rolling Ltd and Stones Ltd enter into a contractual agreement to form a jointly controlled operation on 1 July 2004.Rolling Ltd is to contribute land and production buildings and equipment.Stones Ltd agrees to contribute $21.2 million in cash.It is agreed that they will share output,assets and future contributions in the ratio 50:50.The following information relates to the contribution by Rolling LtD. What are the entries to record the formation of the jointly controlled operation in the books of Rolling Ltd and Stones Ltd and to record the revaluation of land and equipment?
E) None of the given answers.

Question

Rolling Ltd and Stones Ltd enter into a contractual agreement to form a jointly controlled operation on 1 July 2004.Rolling Ltd is to contribute land and production buildings and equipment.Stones Ltd agrees to contribute $21.2 million in cash.It is agreed that they will share output,assets and future contributions in the ratio 50:50.The following information relates to the contribution by Rolling LtD.  What are the entries to record the formation of the jointly controlled operation in the books of Rolling Ltd and Stones Ltd and to record the revaluation of land and equipment?
E) None of the given answers.

Quizplus · Accepted Answer

The Answer of Rolling Ltd and Stones Ltd enter into a contractual agreement to form a jointly controlled operation on 1 July 2004.Rolling Ltd is to contribute land and production buildings and equipment.Stones Ltd agrees to contribute $21.2 million in cash.It is agreed that they will share output,assets and future contributions in the ratio 50:50.The following information relates to the contribution by Rolling LtD.  What are the entries to record the formation of the jointly controlled operation in the books of Rolling Ltd and Stones Ltd and to record the revaluation of land and equipment?
E) None of the given answers.

Rolling Ltd and Stones Ltd Enter into a Contractual Agreement