n January 01, 2020 Kitkat Company, Inc. establishes a branch in Buang. During the year, Kitkat Inc. transfers cash and merchandise to the branch worth P15,000 and P45,000 respectively. Freight was paid by the home office worth P1,500 included in the cost of merchandise. The home office also incurred P5,700 expenses of which 30 percent was allocated to the branch. On December 31, 2020, the branch incurred a loss of P4,000.
n January 01, 2020 Kitkat Company, Inc. establishes a branch in Buang. During the year, Kitkat Inc. transfers cash and merchandise to the branch worth P15,000 and P45,000 respectively. Freight was paid by the home office worth P1,500 included in the cost of merchandise. The home office also incurred P5,700 expenses of which 30 percent was allocated to the branch. On December 31, 2020, the branch incurred a loss of P4,000.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 5EB: Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On...
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On January 01, 2020 Kitkat Company, Inc. establishes a branch in Buang.
During the year, Kitkat Inc. transfers cash and merchandise to the branch
worth P15,000 and P45,000 respectively. Freight was paid by the home
office worth P1,500 included in the cost of merchandise. The home office
also incurred P5,700 expenses of which 30 percent was allocated to the
branch. On December 31, 2020, the branch incurred a loss of P4,000.
What is the balance of the branch account as per home office books
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