a. The home office inadvertently faxed a note to the branch informing the branch of a collection of one of the home office's customers amounting to P23,000. This amount was ignored by the branch's accountant. b. The branch returned merchandise to the home office worth P 256,000. This was not the item ordered by the branch. The accountant of the home office was not able to update the records pertaining to this transaction. c. Merchandise worth P66.340 is still in transit to the branch. d. The branch accountant recorded a merchandise worth P245,000 as P254,000. e. The home office collected an account receivable of the branch amounting to P35,670. The home office accountant repeatedly sent a note to the branch regarding this collection. The branch, in error, recorded the amount twice in its books. f. The branch accountant became aware of the transposition error he committed when he recorded the receipt of the merchandise and made the correcting entry accordingly. g. The branch's net income was not recorded by the home office. The branch reported a net income of P366,920. Compute for the unadjusted balance of the Home Office Current account.

a. The home office inadvertently faxed a note to the branch informing the branch of a collection of one of the home office's customers amounting to P23,000. This amount was ignored by the branch's accountant. b. The branch returned merchandise to the home office worth P 256,000. This was not the item ordered by the branch. The accountant of the home office was not able to update the records pertaining to this transaction. c. Merchandise worth P66.340 is still in transit to the branch. d. The branch accountant recorded a merchandise worth P245,000 as P254,000. e. The home office collected an account receivable of the branch amounting to P35,670. The home office accountant repeatedly sent a note to the branch regarding this collection. The branch, in error, recorded the amount twice in its books. f. The branch accountant became aware of the transposition error he committed when he recorded the receipt of the merchandise and made the correcting entry accordingly. g. The branch's net income was not recorded by the home office. The branch reported a net income of P366,920. Compute for the unadjusted balance of the Home Office Current account.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 18MC: You returned damaged goods to C.C. Rogers Inc. and received a credit memo for $250. Which journal(s)...

See similar textbooks

Similar questions

The company just took a physical count of inventory and found $75 worth of inventory was unaccounted for. It was either stolen or damaged. Which journal would the company use to record the correction of the error in inventory? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
You returned damaged goods to C.C. Rogers Inc. and received a credit memo for $250. Which journal(s) would the company use to record this transaction? A. sales journal only B. purchases journal and the accounts payable subsidiary ledger C. cash receipts journal and the accounts receivable subsidiary ledger D. cash disbursements journal and the accounts payable subsidiary ledger E. general journal and the accounts payable subsidiary ledger
Your examination of the accounts revealed the following information: 1. On December 28, the branch remitted P12,500 in cash to the home office that was not received until January 4. 2. Merchandise that was billed to the branch at P7,500 was in transit at December 31. 3. The branch failed to take up a P1,200 credit memo from the home office representing the cash collections. 4. The branch returned damaged merchandise worth P3,000 but the home office recorded it as P13,000 5. The unadjusted balances in the home office and branch books are P23,140 and P14,340, respectively. What is the adjusted balance of Investments in Branch and Home Office accounts on December 31, 2020?
The following misstatements are included in the accounting records of the Dillon Manufacturing Company: Cash paid on accounts receivable was stolen by the mail clerk when the mail was opened. A sales invoice was miscalculated by $1,000 as a result of a key-entry mistake. Cash paid on accounts receivable that had been prelisted by a secretary was stolen by the bookkeeper, who records cash receipts and accounts receivable. He failed to record the transactions. A material sale was recorded on the last day of the year even though the goods were not shipped until three days later. Merchandise was shipped to a customer, but no bill of lading was prepared. Because billings are prepared from bills of lading, the customer was not billed. The controller approved a payment to a consulting firm owned by his sister. The consulting firm did not actually perform any services for the company. The shipping clerk included several additional valuable items in a shipment that were not…
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 December 31, the Investment in Branch account on the home office books of the SG Company shows a balance of P168,000. The following are some of the transactions between the home office and the branch: a. Merchandise billed at P12,300 was shipped by the home office to the branch on December 28. The merchandise is in transit and has not been recognized on the books of the branch. b. The branch collected a home office accounts receivable of P50,000 but failed to notify the home office of this collection. c. The home office was charged P12,800 when the branch returned merchandise to the home office on December 31. The merchandise is in transit. d. The home office recorded incorrectly the branch net income for November at P22,500. The branch reported net income of P25,200. The unadjusted balance of the Home Office account was:
The following misstatements are included in theaccounting records of the Joyce Manufacturing Company:1. A sales invoice was miscalculated by $1,000 as a result of a key-entry mistake.2. Cash paid on accounts receivable that had been prelisted by a secretary was stolenby the bookkeeper who records cash receipts and accounts receivable. He failed torecord the transactions.3. A material sale was recorded on the last day of the year even though the goods werenot shipped until 3 days later.4. Merchandise was shipped to a customer, but no bill of lading was prepared. Becausebillings are prepared from bills of lading, the customer was not billed.5. The controller approved a payment to a consulting firm owned by his sister. Theconsulting firm did not actually perform any services for the company.6. The shipping clerk included several additional valuable items to a shipment that werenot included in the customer’s order and were not invoiced to the customer. Theshipping clerk has an arrangement…
On December 31, the Investment in Branch account on the home office books of the Unlimited Company shows a balance of P168,000. The following are some of the transactions between the home office and the branch:a. Merchandise billed at P12,300 was shipped by the home office to the branch on December 28. The merchandise is in transit and has not been recognized on the books of the branch.b. The branch collected a home office accounts receivable of P50,000 but failed to notify the home office of this collection.c. The home office was charged P12,800 when the branch returned merchandise to the home office on December 31. The merchandise is in transit.d. The home office recorded incorrectly the branch net income for November at P22,500. The branch reported net income of P25,200.1. The unadjusted balance of the Home Office account was: 2. What is the adjusted balance of the Home Office account?
Assume that Oman Formaldehyde Chemical Company LLC sold the chemical of OMR 540 to the customer and received the check to the same amount. The cheque deposited in the bank immediately but the cheque received from the customer was misreported in the cash receipts journal as OMR 450. Therefore while preparing the Bank Reconciliation statement, what adjustment the accountant will do? Choose the correct answer from the following given options. a. Add OMR 540 to the cash book balance b. Deduct OMR 90 from the cash book balance c. Deduct OMR 540 from the cash book balance d. Add OMR 90 to the cash book balance Clear my choice
Which of the following errors would not affect net income?A. Post-dated checks are classified as cash upon receipt from customersB. Purchases on account are unrecorded because the goods are still in transit : butthe goods were included in inventoryC. Depreciation expense was recorded twice for the same yearD. The client charged an ordinary repair as part of equipment cost.
April showers sells goods on credit to most of it's customers. In order to control it's debtor collection system the company maintains a sale ledger control account. In preparing the accounts for the year to 31 October 2019 the accountant discovers that the total of all the personal accounts in the sales ledger account to sh.12,802 whereas the balance on the sales ledger control account is sh.12,550 Upon investigating the matter, the following errors were discovered. - sales for the week ending 27 March 2019 amounting to sh 850 had been ommited from the control account. - A debtor account balance of sh 300 had not been included in the list of balance . - Cash received of sh. 750 had been entered in a personal account as sh. 570. - Discounts allowed totalling sh.100 had not been entered in the control account. - A personal account balance had been undercast by sh.200. - A contra item of sh.400 with the purchase ledger had not been entered in the control account. - A bad debt of…
April showers sells goods on credit to most of it's customers. In order to control it's debtor collection system the company maintains a sale ledger control account. In preparing the accounts for the year to 31 October 2019 the accountant discovers that the total of all the personal accounts in the sales ledger account to sh.12,802 whereas the balance on the sales ledger control account is sh.12,550 Upon investigating the matter, the following errors were discovered.- sales for the week ending 27 March 2019 amounting to sh 850 had been ommited from the control account.- A debtor account balance of sh 300 had not been included in the list of balance .- Cash received of sh. 750 had been entered in a personal account as sh. 570.- Discounts allowed totalling sh.100 had not been entered in the control account.- A personal account balance had been undercast by sh.200.- A contra item of sh.400 with the purchase ledger had not been entered in the control account.- A bad debt of sh.500 had…