15. ABOMINABLE VERY BAD Co. has several branches. On December 31, 20x1, the "Investment in Branch One" maintained by the home office shows a balance of P400,000 while the "Home office" account maintained by Branch One shows a balance of P568,000. The following information was determined: (a) Branch Two acquired equipment for P120,000 to be maintained in the books of the home office. This was recorded by the home office as a transaction with Branch One. (b) Branch One acquired equipment for P160,000 to be maintained in its books. This was not recorded by the home office. (c) Branch Four remitted cash collections of P40,000 to the home office which the latter failed to record. (d) The home office erroneously charged Branch One for a debit memo of P48,000 received from Branch Five. (e) Branch One reversed a previous debit memo from Branch Six amounting to P24,000. The home office decided that this charge is appropriately Branch Seven's cost. REQUIREMENT: How much is adjusted balance of the "Home Office" account?

15. ABOMINABLE VERY BAD Co. has several branches. On December 31, 20x1, the "Investment in Branch One" maintained by the home office shows a balance of P400,000 while the "Home office" account maintained by Branch One shows a balance of P568,000. The following information was determined: (a) Branch Two acquired equipment for P120,000 to be maintained in the books of the home office. This was recorded by the home office as a transaction with Branch One. (b) Branch One acquired equipment for P160,000 to be maintained in its books. This was not recorded by the home office. (c) Branch Four remitted cash collections of P40,000 to the home office which the latter failed to record. (d) The home office erroneously charged Branch One for a debit memo of P48,000 received from Branch Five. (e) Branch One reversed a previous debit memo from Branch Six amounting to P24,000. The home office decided that this charge is appropriately Branch Seven's cost. REQUIREMENT: How much is adjusted balance of the "Home Office" account?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 23MC: A company purchased a building twenty years ago for $150,000. The building currently has an...

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