4. The National Home Company ships and bills merchandise to its provincial branch at cost. The branch carries its own accounts receivable and make its own collections. The branch also pays its expenses. The transactions for 2009 are reflected in the branch trial balance that follows: Debit Credit Cash 11,900 Nation Home Co Current 90,000 Shipments from Nation Home Co, 120,000 Accounts Receivable 62,500 Expenses 8,100 Sales 112,500 December 31 Inventory P30,000 The net profit of the branch was? In the home office books, the Branch Current account should be?

4. The National Home Company ships and bills merchandise to its provincial branch at cost. The branch carries its own accounts receivable and make its own collections. The branch also pays its expenses. The transactions for 2009 are reflected in the branch trial balance that follows: Debit Credit Cash 11,900 Nation Home Co Current 90,000 Shipments from Nation Home Co, 120,000 Accounts Receivable 62,500 Expenses 8,100 Sales 112,500 December 31 Inventory P30,000 The net profit of the branch was? In the home office books, the Branch Current account should be?

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 18E

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On December 31, 2020, the Branch Current in the Home Office books shows a balance of P50,000. The following facts are ascertained: Merchandise billed at P 12,500 is in transit on December 31 from the home office to the branch. The branch collected a home office accounts receivable for P3,500. The branch did not notify the home office of such collection. On December 30, the home office sent cash of P7,500 to the branch, but this was charged to general expense; the branch has not received the cash as of December 31. Branch profit for December was recorded by the home office at P2,400 instead of P2,040. The branch returned supplies of P1,500 to the home office but the home office has not yet recorded the receipt of the supplies. Assume all other transactions have been properly recorded. What is the unadjusted balance of the Home Office Current account on the branch books on December 31, 2020?
On June 30, 2021, Alpha Co.'s Mega branch showed a Home Office account balance of $2,735 and the Home Office books showed an investment branch Mega of $2,555. The following additional information is given: Home office was charged for $120 for merchandise returned by Mega branch (merchandise is in transit) $1,200 shipment, charged by Home Office to Mega branch was actually sent and retained by Taco branch. Home office collects a Mega branch accounts receivable of $360 and fails to notify the branch. $1,500 shipment, intended and charged to Pasta branch was shipped to Mega branch and retained by the latter $200 emergency cash transfer from Spaghetti branch was not recorded in the Home Office books Home office erroneusly recorded Mega's net income for May 2021 at $1,627.5 The branch reported a net income of $1,267.5 What is the reconciled amount of the Home Office and Mega branch reciprocal amount?
Main Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The branch reported an inventory on December 31, 2021: Outsiders, P3,391; Home office, P7,625 The transactions for the year are given effect to in the trial balance below: (see image) 10. Using the same information above, determine the branch current account in the Home Office books on January 1, 2022.
Chicken Wings Company is engaged in buying and selling of office equipment which caters both cash and on account sales to customers. The following are the transactions that affect accounts receivable during 2021:Sales (cash and on account), P591,050Cash received from cash customers, P205,175Cash received from credit customers (281,300 was received from customers who took advantage of the discount feature of the company’s credit term 3/10, n/30, P320,800Accounts written of as worthless, P4,955Credit memoranda issued to credit customers for sales returns and allowances, P26,275Cash refunds given to cash customers for sales returns and allowances, P16,972Recoveries on accounts written off as uncollectible in prior periods (not included in cash collections stated above), P6,615An aging of the receivables indicates that P17,300 of the accounts receivable balance are deemed uncollectible.The following balances were taken from the December 31, 2020 statement of financial position:Accounts…
HO operates a branch in Makati. On October 31, 2017, the Branch Current account had a balance of P300,000. In the process of reconciling the reciprocal current accounts, the items that follow were noted:a. The home office had billed the branch P75,000 for merchandise shipment still in transit of October 31.b. A home office customer’s account for P21,000 collected by the branch on October 26 has not been reported to the home office.c. The branch has failed to recognize its P5,000 share of advertising expense paid for by the home office.d. The branch reported a net income of P43,500 during the fiscal period then ended; this was erroneously taken up as P45,500 by the home office. Assuming that all other transactions related to the home office and its branch are correctly recorded, the unadjusted balance of the home office current account as of October 31, 2017 is: A. 243,000 B. 319,000 C. 323,000 D. 239,000
Main Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The branch reported an inventory on December 31, 2021: Outsiders, P3,391; Home office, P7,625 The transactions for the year are given effect to in the trial balance below: (see image) QUESTION: Using the same information above, shipments to Branch account in the Home Office books on January 1, 2022
The following transactions pertain to a branch’s first month’s operations:a. The home office sent P9,000 cash to the branch.b. The home office shipped inventory costing P40,000 to the branch; the intercompany billing was for P50,000.c. Branch inventory purchases from outside vendors totaled P30,000.d. Branch sales on account were P80,000.e. The home office allocated P2,000 in advertising expense to the branch.f. Branch collections on accounts receivable were P45,000.g. Branch operating expenses of P14,000 were incurred, none of which were paid at month-end.h. The branch remitted P17,000 to the home office.i. The branch’s ending inventory (as reported in its balance sheet) is composed of:Acquired from outside vendors P12,000Acquired from home office (at billing price) 20,000Requirements:a. Prepare journal entries in the books of Home Office and Branch.b. Prepare branch’s income statement for its first month’s operation
AMNESTY PARDON Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a ₱624,000 balance in its “Investment in branch” account while the branch showed a ₱280,800 balance in its “Home office” account. The following information has been gathered: (a) The home office shipped merchandise worth ₱80,000 to the branch during December 20x1 which the latter has received and recorded only in January 20x2. (b) The home office collected ₱40,000 accounts receivable on behalf of the branch. The branch did not yet receive the credit memo sent by the home office. (c) The branch returned damaged merchandise worth ₱120,000 to the home office. The home office did not yet receive the debit memo sent by the branch. (d) A remittance of cash collections amounting to ₱160,000 was not yet recorded by the home office. (e) The home office allocated overhead cost of ₱20,000 to the branch which the latter has recorded twice.…
AMNESTY PARDON Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a ₱624,000 balance in its “Investment in branch” account while the branch showed a ₱280,800 balance in its “Home office” account. The following information has been gathered: (a) The home office shipped merchandise worth ₱80,000 to the branch during December 20x1 which the latter has received and recorded only in January 20x2. (b) The home office collected ₱40,000 accounts receivable on behalf of the branch. The branch did not yet receive the credit memo sent by the home office. (c) The branch returned damaged merchandise worth ₱120,000 to the home office. The home office did not yet receive the debit memo sent by the branch. (d) A remittance of cash collections amounting to ₱160,000 was not yet recorded by the home office. (e) The home office allocated overhead cost of ₱20,000 to the branch which the latter has recorded twice.…
Star Company provided the following transactions affecting accountsreceivable during the year ended December 31, 2014:Sales (cash and credit) 5,900,000Cash received from credit customers, all of whomtook advantage of the discount feature of theentity’s credit terms 4/10, n/30 3,024,000Cash received from cash customers 2,100,000Accounts receivable written off as worthless 50,000Credit memorandum issued to credit customersfor sales returns and allowances 250,000Cash refunds given to cash customers for salesreturns and allowances 20,000Recoveries on accounts receivable written off asuncollectible in prior periods (not included incash amount stated above) 80,000The following balances were taken from January 1, 2014 statement of financial position:Accounts receivable 950,000Allowance for doubtful accounts 100,000The entity provided for uncollectible accounts losses by crediting allowance for doubtful accountsin the amount of P 70,000 for the current year.23. What is the balance of accounts…
On August 1, 2019, GREEN CO, a home office established two branches: ORANGE branch and APRICOT branch. GREEN, transferred P280,000 worth of cash and P1,225,000 worth of merchandise to its ORANGE branch. On August 15, the head office instructed ORANGE to transfer three-fourths of the merchandise and cash received to APRICOT branch. In addition, on October 6, 2019, shipments from the main office received by ORANGE branch amounting to P437,500 and freight, collect amounting to P22,750. Three-fifths of the said shipments were sold by ORANGE branch to customers. On November 9, 2019, upon instruction of the home office, ORANGE branch transferred to APRICOT half of the remaining immediate prior month shipments from GREEN. The receiving branch paid additional freight in the amount of P8,750. Had the merchandise been shipped from GREEN directly to APRICOT, only P6,650 worth of freight would have been incurred. Compute the balance of the Investment in APRICOT branch account in the separate…
Main Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The branch reported an inventory on December 31, 2021: Outsiders, P3,391; Home office, P7,625 The transactions for the year are given effect to in the trial balance below: Using the same information above, determine the branch current account in the Home Office books on January 1, 2022 Using the same information above, shipments to Branch account in the Home Office books on January 1, 2022.