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guapka [62]
1 year ago
6

what type of relationship has probably been formed if two or more parties agree to combine their efforts for a single business t

ransaction?
Business
1 answer:
Tamiku [17]1 year ago
7 0

Answer:

A joint venture has been formed.

Explanation:

A joint venture (JV) relationship is a business arrangement in which two or more parties agree to combine their resources and efforts for the purpose of accomplishing a specific task or a single business transaction. This task or transaction can be a new business project or any other business activity.  As they are jointly engaged in the business transaction, they also agree to share the profits (rewards) and losses (risks) arising from the transaction jointly.

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Answer:

The Journal entry is as follows:

Depletion expense - Coal Deposit  A/c     Dr. $280,000

To Accumulated depletion -Coal Deposit                        $280,000

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