Cash Contributed to a Joint Operation Was Used to Purchase

question 10

Multiple Choice

Cash contributed to a joint operation was used to purchase Equipment ($100 000) and raw materials ($70 000) . The following entry would be part of the overall recording of these transactions:

• A) \(\begin{array} { l l c }
• \text { DR } & \text { Equipment } & \$ 100,000 \\
• \text { DR } & \text { Raw materials } & \$ 70,000 \\
• \text { CR } & \text { Cash } & \$ 170,000 ;
• \end{array}\)
• B) \(\begin{array} { l l r }
• \text { DR } & \text { Work in progress } & \$ 170,000 \\
• \text { CR } & \text { Joint operation capital } & \$ 170,000 ;
• \end{array}\)
• C) DR Cash\(\quad\) \(\$ 170,000\)
• DR Contribution to joint operation \(\quad \$ 170,000\);
• D)\(\begin{array} { l l r }
• \mathrm { DR } & \text { Cash } & \$ 170,000 \\
• \mathrm { CR } & \text { Equipment } & \$ 100,000 \\
• \mathrm { CR } & \text { Raw materials } & \$ 70,000 .
• \end{array}\)

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