ntegrity operates a branch in Laoag City. At close of the business on December 31, 2022. Laoag Branch account in the home office books showed a debit balance of P234,900. The inter-office accounts were in agreement at the beginning of the year. For purposes of reconciling the interoffice accounts, the following facts were ascertained. a. Computer equipment costing the home office P27,000 was sent to Laoag branch. The home office will maintain the records of the asset used by the branch. Meanwhile back at the branch, no entry was made. b. The branch acquired a machinery costing P18,000. The home office will maintain the records of the asset used by the branch. The home office was not yet notified. c. The home office charged the branch for freight amount to P2,220. It should have been charged to its customer. d. The home office inadvertently recorded a Laoag branch remittance of P4,200, as collection from its customers on account. e. On December 24, 2022, the branch sent a check for P9,600 to its suppliers on account. The branch erroneously recorded the transaction as a remittance to the home office and sent a copy of the debit memo to the home office. The home office recorded this upon receiving the debit memo on December 29, 2022. f. On December 26, 2022 the branch returned P6,600 of excess merchandise to the home office. The merchandise was received by the home office on December 30, 2022 and credited Lanao Branch Current. g. The home office allocated advertising and rent expense totaling P5,400 to Laoag branch. The home office charged the said expense to Laguna branch by mistake, Laoag branch had not entered the allocated at year-end. h. A home office customer remitted P3,600 to the branch. The branch inadvertently recorded this transaction on December 28, 2022 as a transfer of cash from the home office. The home office made no entry during the year. i. Inventory costing P36,000 was sent to the branch by the home office on December 14, 2022. The branch recorded the transaction as a purchase of merchandise on account from outsiders by mistake. What is the unadjusted balance of the home office current account as of December 31, 2022? a. P222,480 b. P171,480 c. P188,880 d. P178,320 e. P181,320
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Integrity operates a branch in Laoag City. At close of the business on December 31, 2022. Laoag Branch account in the home office books showed a debit balance of P234,900. The inter-office accounts were in agreement at the beginning of the year. For purposes of reconciling the interoffice accounts, the following facts were ascertained.
a. Computer equipment costing the home office P27,000 was sent to Laoag branch. The home office will maintain the records of the asset used by the branch. Meanwhile back at the branch, no entry was made.
b. The branch acquired a machinery costing P18,000. The home office will maintain the records of the asset used by the branch. The home office was not yet notified.
c. The home office charged the branch for freight amount to P2,220. It should have been charged to its customer.
d. The home office inadvertently recorded a Laoag branch remittance of P4,200, as collection from its customers on account.
e. On December 24, 2022, the branch sent a check for P9,600 to its suppliers on account. The branch erroneously recorded the transaction as a remittance to the home office and sent a copy of the debit memo to the home office. The home office recorded this upon receiving the debit memo on December 29, 2022.
f. On December 26, 2022 the branch returned P6,600 of excess merchandise to the home office. The merchandise was received by the home office on December 30, 2022 and credited Lanao Branch Current.
g. The home office allocated advertising and rent expense totaling P5,400 to Laoag branch. The home office charged the said expense to Laguna branch by mistake, Laoag branch had not entered the allocated at year-end.
h. A home office customer remitted P3,600 to the branch. The branch inadvertently recorded this transaction on December 28, 2022 as a transfer of cash from the home office. The home office made no entry during the year.
i. Inventory costing P36,000 was sent to the branch by the home office on December 14, 2022. The branch recorded the transaction as a purchase of merchandise on account from outsiders by mistake.
What is the unadjusted balance of the home office current account as of December 31, 2022?
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