Home Office Books P 360,000 119,880 Branch Books Shipments to branch Allowance for overvaluation of branch inventory Shipments from home office Purchases (from outsiders) Merchandise inventory, January 1 Merchandise inventory, December 31 Sales P 468,000 173,520 65,520 58,500 648,000

Q: 5. Presented below are items taken from the unadjusted trial balance of the Company and its branch…

A: Head or home office sends goods to the branches and treats the goods as investment. It is just like…

Q: Northwest Fur Co. started 2021 with $105,000 of merchandise inventory on hand. During 2021, $540,000…

A: Formula: Net purchases = Purchases - purchase returns.

Q: Entity A bills its branch for merchandise shipments 25% of sale. As of cut-off date, December 31,…

A: Calculation of Allowance for overvaluation is shown below:

Q: Branch: - Inventory costing P51,600 was sent to the branch by the home office on December 31, 20…

A: Investment is the amount which is spent by the producer for the purchase of those goods which…

Q: Honesty Corporation’s shipments to and from its Quezon City branch are billed at 125% of cost. On…

A: Adjusted branch net income is an income actually earned by the branch. It is calculated after…

Q: The home office of Glendale Company, which uses the perpetual inventory system, bills shipments of…

A: Solution Gross profit is the profit a business makes after substracting all costs that are related…

Q: 3. The following information came from the books and records of ABC Corporation and its branch. The…

A: The question is related to net income and net income is calculated from sales-cost of goods sold…

Q: The home office bills its branch at 40% above cost. During the year 2020, goods costing 150,000 were…

A: When home office ships inventory to Branch at above cost. Then investment in Branch will debited…

Q: 3. The following information came from the books and records of ABC Corporation and its branch. The…

A:

Q: The home office bills shipments of merchandise to its branch at a markup of 20% based on cost. At…

A: Mark up on shipments from home office  = $960, 000*20/80 = $240, 000

Q: Entity A bills its branch for merchandise shipments 25% of sale. As of cut-off date, December 31,…

A: Branch accounting is the accounting records maintain by the each branch separate from their head…

Q: On January 1,2021, Wackisan Co. sells inventory with list price of ₱100,000 on account under credit…

A: The current asset arising by providing the services or selling the goods on credit is known as…

Q: The home office ships merchandise to the branch at 25 percent above cost. At what amount should the…

A: As per question: home office ships merchandise to the branch at 25 percent above cost i.e selling…

Q: Hola Corporation’s shipments to and from its Manila branch are billed at 125% of cost. On December…

A: Generally, the head office sends goods to a branch at a price above the cost that is at a markup.…

Q: the sales revenues section of the income statement.

A: Sales revenue: sales revenue is the revenue earned by the company through sales Gross sales: Gross…

Q: The June 30, 2021, year-end trial balance for Askew company contained the following information:…

A: Cost of goods sold statement shows all costs that is incurred for manufacturing and selling of…

Q: 3. The following information came from the books and records of ABC Corporation and its branch. The…

A: Branch Accounting is a book-keeping system in which separate accounts are maintained for each…

Q: YE Company ships inventory to its branch at a mark-up of 125% of cost. The required balance of the…

A: Some time , head office sent the goods to branch at price over the cost price for which the head…

Q: Presented below are items taken from the unadjusted trial balance of the Company and its branch on…

A: Answer -  Working Note : i. Beginning inventory from HO, at cost (11,880 / 30%) = P 39,600.   ii.…

Q: Oro Corporation has a branch in Cebu. The branch reported income of P130,000 for 2019. The branch…

A: Step 1 Branch accounting is a bookkeeping system in which separate accounts are maintained for each…

Q: Chico Company allows its customers to return merchandise within 30 days of purchase. ∙ At December…

A:

Q: The following information are extracted from the books and records of MNO and its branch. The…

A: Branch accounting is the type of accounting in which accounting treatment is shown for two branches…

Q: During the month of February 2020, the following transactions occurred. Feb. 1 Collected P113,000…

A: Journal entries recording is the first step of accounting process, under which at least one account…

Q: The home office of SG Company, which uses the perpetual inventory system, bills shipments of…

A: Gross profit is the amount which indicates the earnings of an entity after reducing the cost of…

Q: 3. The following information came from the books and records of ABC Corporation and its branch. The…

A: In this problem we will decide the net income at branch  as per…

Q: Additional information: Merchandise inventory, ₱50,400 Shipments to the branch are billed at 140% of…

A: Merchandise Inventory : 50400 Shipments to branch are billed at 140% of cost

Q: The following are selected transactions for KnK, Enterprises on September 2020. All transactions…

A: The journal is the primary book of entry of business transactions. A journal entry keeps record of…

Q: Also  prepare journal entries to record he December 20 purchase and the December  29 sales using…

A: The perpetual inventory method and periodic inventory method are the methods used to count the…

Q: Selected information from the trial balances for the home office and the branch of Lalay Company at…

A: Here Student asked for Multi sub part question we will solve first three sub part question for you.…

Q: The home office sells merchandise to its branch at 120% of cost. The branch was established several…

A: Lets understand the basics. When home office shipped goods to branch office which exceeds its cost…

Q: 1. The home office bills its branch at 40% above cost. During the year 2020, goods costing 150,000…

A: Branch and Head office concept comes in to existence  where company is running from more than one…

Q: The Company has a single branch in Southwest. On March 1, 2020, the home office accounting records…

A: Solution:- Preparation of working paper for the home office to analyse the flow of merchandise to…

Q: 1. how much is the Net Income reported by the Branch? 2. how much is the True Income of the Branch?

A: Net income reported by branch is calculated as follows: Net income = Sales - ( opening inventory +…

Q: The home office bills its branch at 40% above cost. During the year 2020, goods costing 150,000 were…

A: Lets understand the meaning of the "Allowance for overvaluation of branch inventory" account.  This…

Q: Yahoo Company bills its Palawan branch at 140% of cost during 2020. Goods billed at P866,250 were…

A: Cost of goods available for sale means that cost of goods which include the opening stock and…

Q: Selected information from the trial balances for the home office and the branch of Lalay Company at…

A: *As per the guideline if question are interlinked, only 3 subparts are need to be answered…

Q: ZKABAN bills its branch for merchandise shipments 25% of sale. As of cut-offf date, December 31,…

A: Step 1 Overvaluation allowance for branch account is adjusted off due to set off the inter branch…

Q: How much is the cost of goods available for sale of the branch?Required to answer. Single line text.

A: Cost of Goods Sold is the cost of producing the goods, and it consists of direct materials, direct…

Q: Entity A bills its branch for merchandise shipments 25% of sale. As of cut-off date, December 31,…

A: Over-Valuation:-When the budgeted estimation is more than the actual expenses or value incurred,…

Q: Bayabas Company started operations on January 1, 2021. Following data are available as of June 30,…

A: Account Receivable is a Current Asset account. When a credit sales is made , Sales revenue is…

Q: CDE Company bills its Palawan branch at 140% of cost during 2020. Goods billed at P866,250 were…

A: Cost of goods sold means that value of opening stock plus purchases minus closing stock but cost of…

Q: Selected information from the trial balances for the home office and the branch of Lalay Company at…

A: Allowance for overvaluation account shows the profit on unrealized inventory. Hence the unrealized…

Q: Vangie Company, a merchandising concern entity, has the following transactions during 2020: a.…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: On January 15, 2021, Marimar Company shipped 100 cellphone units to Sergio Company.     The related…

A: sale price = list price - trade discount sales is recorded at invoice price  invoice price = 60% of…

Q: On May 1, 2021, Company A shipped merchandise costing $16,000 to Company B on consignment. Company A…

A: Solution Goods sold on consignment Under goods sold on consignment the consignor sends the goods…

Q: The following information are extracted from the books and records of Pinoy Company and its branch.…

A: Answer: Given Sales 200,000Shipments to branch 60,000Shipments from home office 80,000Purchases…

Q: Donovan Inc., a retail store chain, had the following information in its general ledger for the year…

A: Inventoriable costs: Inventoriable cost or Product costs are the costs which are incurred in the…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.