7. The year-end balance of the "Investment in Dagupan Branch in the home office books has a balance of P225,770. The following information was determined during the reconciliation: CHAPTER 11 | HO BRANCH | MILLAN a. Office equipment costing the home office P3,500 was recorded by the branch as P350. b. Insurance premium of P675 charged by the home office was taken up twice by the branch. c. Freight charge on merchandise made by the home office for P1,125 was recorded in the branch books as P1,215. d. Home office credit memo representing a discount on merchandise for P800 was not recorded by the branch. e. The branch failed to take up a P700 debit memo from the home office representing the share of the branch in advertising f. The home office inadvertently recorded a remittance for P3,000 from its Cebu branch as a remittance from its Dagupan branch How much are the unadjusted and adjusted balances of the "Home office account as of year-end? ANSWER: Unadjusted: 226, 485 – Adjusted: 228,700

7. The year-end balance of the "Investment in Dagupan Branch in the home office books has a balance of P225,770. The following information was determined during the reconciliation: CHAPTER 11 | HO BRANCH | MILLAN a. Office equipment costing the home office P3,500 was recorded by the branch as P350. b. Insurance premium of P675 charged by the home office was taken up twice by the branch. c. Freight charge on merchandise made by the home office for P1,125 was recorded in the branch books as P1,215. d. Home office credit memo representing a discount on merchandise for P800 was not recorded by the branch. e. The branch failed to take up a P700 debit memo from the home office representing the share of the branch in advertising f. The home office inadvertently recorded a remittance for P3,000 from its Cebu branch as a remittance from its Dagupan branch How much are the unadjusted and adjusted balances of the "Home office account as of year-end? ANSWER: Unadjusted: 226, 485 – Adjusted: 228,700

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.…
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