13. AMNESTY PARDON Co. is currently preparing its combined financial statements. At December 31,20x1, the home office shows a P624,000 balance in its "Investment in branch" account while thebranch showed a P280,800 balance in its "Home office" account. The following information hasbeen gathered:(a) The home office shipped merchandise worth P80,000 to the branch during December 20x1which the latter has received and recorded only in January 20x2.(b) The home office collected P40,000 accounts receivable on behalf of the branch. The branch didnot yet receive the credit memo sent by the home office.(c) The branch returned damaged merchandise worth P120,000 to the home office. The homeoffice did not yet receive the debit memo sent by the branch.(d) A remittance of cash collections amounting to P160,000 was not yet recorded by the homeoffice.(e) The home office allocated overhead cost of P20,000 to the branch which the latter has recordedtwice.(f) Freight charge of P48,000 paid by the home office for shipments of merchandise to the branchwas recorded by the latter as P4,800.REQUIREMENT: How much is the adjusted balance of the "home office" account?

Particulars Amount (P) Balance of 'Home Account' in the books of Branch 280800 Add:…

3. AMNESTY PARDON Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a P624,000 balance in its "Investment in branch" account while the branch showed a P280,800 balance in its "Home office" account. The following information has been gathered: a) The home office shipped merchandise worth P80,000 to the branch during December 20x1

3. AMNESTY PARDON Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a P624,000 balance in its "Investment in branch" account while the branch showed a P280,800 balance in its "Home office" account. The following information has been gathered: a) The home office shipped merchandise worth P80,000 to the branch during December 20x1

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement

Section: Chapter Questions

Problem 13E

See similar textbooks

Similar questions

Screpcap Co. had the following transactions during the first week of June: June 1Purchased merchandise on account from Acme Supply, 2,700, plus freight charges of 160. 1Issued Check No. 219 to Denver Wholesalers for merchandise purchased on account, 720, less 1% discount. 1Sold merchandise on account to F. Colby, 246, plus 5% state sales tax plus 2% city sales tax. June 2Received cash on account from N. Dunlop, 315. 2Made cash sale of 413 plus 5% state sales tax plus 2% city sales tax. 2Purchased merchandise on account from Permon Co., 3,200, plus freight charges of 190. 3Sold merchandise on account to F. Ayres, 211, plus 5% state sales tax plus 2% city sales tax. 3Issued Check No. 220 to Ellis Co. for merchandise purchased on account, 847, less 1% discount. 3Received cash on account from F. Graves, 463. 4Issued Check No. 221 to Penguin Warehouse for merchandise purchased on account, 950, less 1% discount. 4Sold merchandise on account to K. Stanga, 318, plus 5% state sales tax plus 2% city sales tax. 4Purchased merchandise on account from Mason Milling, 1,630, plus freight charges of 90. 4Received cash on account from O. Alston, 381. 5Made cash sale of 319 plus 5% state sales tax plus 2% city sales tax. 5Issued Check No. 222 to Acme Supply for merchandise purchased on account, 980, less 1% discount. Required 1. Record the transactions in a general journal. 2. Assuming these are the types of transactions Screpcap Co. experiences on a regular basis, design the following special journals for Screpcap: (a) Sales journal (b) Cash receipts journal (c) Purchases journal (d) Cash payments journal
Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Days’ sale in receivable
Jonel Corporation operates a branch in Cebu. In October, the HO shipped P 68,000 merchandise to this branch, which the branch credited the HO account for P 86,000. In November, the branch collected P2,000 HO accounts receivable. The HO was properly notified but debited Investment in Branch account for P 8,000. At the end of the year, the HO paid and recorded a P 12,000 expense for the branch but the branch has not yet made the appropriate entry for this. At year-end, the branch transferred P 50,000 cash to HO but the HO has not yet made the necessary entry. Based on the above, the corrections needed are a. HO to credit its Investment in Branch account for P 48,000, and the Branch to debit the HO account for P 18,000. b. HO to credit its Investment in Branch account for P 60,000 and the Branch to debit the HO account for P6,000 c. HO to credit its Investment in Branch account for P 56,000 and the Branch to debit the HO account for P 6,000. d. HO to credit its Investment in Branch…
On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During theyear, Kit Inc. transfers cash and merchandise to the branch worth P15,000 andP45,000 respectively. Freight was paid by the home office worth P1,500 included inthe cost of merchandise. The home office also incurred P5,700 expenses of which 30percent was allocated to the branch. On December 31, 2020, the branch incurred aloss of P4,000. What is the balance of the branch account as per home office books?*Please answer in good Acctg form. Thanks!
ABC Company operates a number of branches. On December 31, 2022, its Mindanao branch showed a Home Office Account balance of P547,000 and the home office books showed an Investment in Mindanao branch of P511,000. The following information are made available: 1. A P300,000 shipment, originally intended and charged to Luzon branch was actually shipped to Mindanao branch. 2. Home office was charged for P24,000 for merchandise returned by Mindanao branch on December 30. The home office has not yet received the said merchandise. 3. A P240,000 shipment was charged by the home office to Mindanao branch. However, it was actually shipped and retained by Visayas branch. 4. A P40,000 cash transfer from Visayas was not taken up in the books of the home office. 5. Home office collected P72,000 of the accounts receivable of Mindanao. The branch was not notified of the collection. 6. The home office recorded Mindanao net income at P325,500. However, the correct net income of the branch is P253,500.…
Northwest Sales had the following transactions in Year 1: The business was started when it acquired $58,500 cash from the issue of common stock. Northwest purchased $185,000 of merchandise for cash in Year 1. During the year, the company sold merchandise for $198,220. The merchandise cost $109,021. Sales were made under the following terms: a. Cash sales $48,870b. Credit card sales (The credit card company charges a $2.25 percent service fee.) $139,520c. Sales on account $9,830 The company collected all the amount receivable from the credit card company. The company collected $9,044 of accounts receivable. The company paid $40,927 cash for selling and administrative expenses. Determined that 3.75 percent of the ending accounts receivable balance would be uncollectible. Required Show the effects of each of the transactions on the elements of the financial statements, using a horizontal statements model. Use + for increase, − for decrease, and leave blank for not affected. In the…
Germany Company started business at the beginning of current year. The entity established an allowance for doubtful accounts estimated at 5% credit sales.During the year, the entity wrote off Php50,000 of uncollectible accounts.Merchandise purchased amounted to Php9,000,000 and ending merchandise inventory was Php1,500,000. Goods were sold at 40% above cost.The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to Php6,000,000.What amount should be reported as sales on account?What is the net realizable value of accounts receivable at year-end?
18. The following information pertains to Q Company:Trade accounts receivable, net of P10,000 credit balance in customers’ accounts, P350,000Notes receivable, P30,000 due in 12 months, P210,000Advances to officers, due in 2 years, P20,000Advances to suppliers, P10,000Sale price of unsold goods sent on consignment to Entity F (120% of cost), P24,000Security deposit paid on a one-year lease contract, P6,000Dividends receivable, P30,000Determine the total current receivables.
Germo Company started business at the beginning of the current year. The entity established an allowance for doubtful accounts estimated at 5% of credit sales. During the year, the entity wrote off P50,000 of uncollectible accounts. Further analysis showed that the merchandise purchased amounted to P9,000,000 and ending merchandise inventory was P1,500,000. Goods were sold at 40% above cost. The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to P6,000,000. What is the amount of sales on account?
Germo Company started business at the beginning of the current year. The entity established an allowance for doubtful accounts estimated at 5% of credit sales. During the year, the entity wrote off P50,000 of uncollectible accounts. Further analysis showed that the merchandise purchased amounted to P9,000,000 and ending merchandise inventory was P1,500,000. Goods were sold at 40% above cost. The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to P6,000,000. What is the net realizable value of accounts receivable at year-end?
MD Company started business at the beginning of current year. The entity established an allowance for doubtful accounts estimated at 5% credit sales. During the year, the entity wrote off Php20,000 of uncollectible accounts. Merchandise purchased amounted to Php18,000,000 and ending merchandise inventory was Php3,000,000. Goods were sold at 20% above cost. The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to Php12,000,000. What is the net realizable value of accounts receivable at year-end