Cost of goods sold of the branch in so far as the home office is concernedAdjusted balance of allowance for overvaluation Sparta Company set up a branch in a province. The entity and its branch provided the following data for thesecond year of branch operation:Home OfficeP2,000,000100,000BranchSales revenue to outside customersP100,00060,000Beginning inventoryPurchases from outside supplierShipment to branchShipment from home officeEnding inventoryOperating expenses800,000200,000400,000160,000300,000500,000100,00080,000The home office to branch markup based on cost is 25% this year and last year.• Twenty percent (20%) of the beginning inventory came from an outside supplier.Twenty-four percent (24%) of the ending inventory of the branch came from last year's shipment fromthe home office, while 50% came from the current year's shipment from the home office.

Given : 25% mark up sale by home office to Branch. 20 % of the beginning inventory came from…

Answered: home office is concerned Adjusted…

Business

Accounting

home office is concerned Adjusted balance of allowance for overvaluation

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter24: Recording International And Internet Sales

Section: Chapter Questions

Problem 1MP

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Cebu Branch submitted the following data to its home office in Manila for 2021, its first year of operation: Sales P2,300,000; Shipments from Home Office P1,850,000; Operating expenses P235.000; Home Office Current P480,000. Shipments to the branch are billed at cost. The December 31 inventory of the branch was P255,500. What was the balance of the Investment in Branch account on December 31, 2021 on the home office books?
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