Compute for the realized profit in branch inventory. The following information is extracted from the books and records of Elaine Company and its branch. The balances are atDecember 31, 2012 of the company's operations.Home OfficeBranchSalesP260,000P 78,000Shipments to branchShipments from home officePurchases104,00039,00078,00D26,000ExpensesInventory, January 1, 2012Allowance for overvaluation of branch inventory31,200However, no shipments in transit between home office and the branch were made. Both shipments accounts areproperly recorded. The ending inventory includes merdhandise acquired from the home office in the amount ofP26,000 and P7,800 acquired from outsiders acquired from the home office in the amount of P26,000 and P7,800acquired from outsiders for a total of P33,800.

Meaning of Branch Accounting Branch Accounting is a system in which separate books of accounts are…

Answered: Compute for the realized profit in…

Business

Accounting

Compute for the realized profit in branch inventory.

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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During 2016, Jose Corporation transferred inventory from its home office to itsLaguna Branch at a billed price of P110,000. The inventory originally cost thecompany P90,000. The home office reported sales and cost of goods sold ofP1,400,000 and P590,000, respectively. The Laguna branch reported sales and costof goods sold of P675,000 and P300,000, respectively. All of the inventory had beensold by year – end. What is the cost of goods sold to be reported in the 2016 combined statement of comprehensive income?
The following are extracted from the records of DONATELLO CO. and its branch MICHELANGELO Co. on December 31, 2008, the third year of the corporation's existence: DONATELLO CO. MICHELANGELO CO. Allowance for Overvaluation $72,500 Sales $600,000 Expenses $200,000 Shipment from Home Office $444,000 The branch acquires all of its merchandise from the Home Office. The inventories of the Branch at billed prices are: January 1, 2008-$47,717.18 December 31, 2008-$84,000 Determine the branch profit-adjusted. a)107,500 b)49,000 c)25,766 d)58,500
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