A Company’s branch in San Fernando began operations on January 1, 2021. During the first year of operations, the home office shipped merchandise to the San Fernando branch that cost P250,000. Freight-in of P1,500 on the shipments from the home office was paid by the branch. The home office should make an adjusting entry for freight-in as follows:*   A. A year-end adjusting entry debiting the branch account for ₱1,500. B. A year-end adjusting entry debiting the home office account for ₱1,500. C. A year-end adjusting entry crediting the branch account for ₱1,500. D. No year-end adjusting entry for the freight charge.

College Accounting (Book Only): A Career Approach
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Chapter12: Financial Statements, Closing Entries, And Reversing Entries
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Problem 4PA: The following accounts appear in the ledger of Celso and Company as of June 30, the end of this...
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  1. A Company’s branch in San Fernando began operations on January 1, 2021. During the first year of operations, the home office shipped merchandise to the San Fernando branch that cost P250,000. Freight-in of P1,500 on the shipments from the home office was paid by the branch. The home office should make an adjusting entry for freight-in as follows:*

 

A. A year-end adjusting entry debiting the branch account for ₱1,500.

B. A year-end adjusting entry debiting the home office account for ₱1,500.

C. A year-end adjusting entry crediting the branch account for ₱1,500.

D. No year-end adjusting entry for the freight charge.

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