On August 1, 20x1. Bombo and Chocolat formed a joint operation to acquire and sell a special type of merchandise. The contractual arrangements provide that Watson is to manage the joint operation for a fee and that gain, and losses are to be divided equally. On August 1, 20x1, Fernando invest cash of 50,000 which was used to purchase merchandise. Watson incurs expenses amounting to 2,460. On August 17, one half of the merchandise was sold for 36,700 cash.

Required: Profit (loss) of the joint operation for August. No further transactions until end of month.

Answer rating: 100% (QA)

Cost of merchandise 50000 expenses 2400 Total value of ... View the full answer