P-1 A branch of Venell Corporation is on its first year of operations. The following series of activities summarize the branch transactions: a. The home office sends P75,000 to the newly formed branch to start its operations. b. The home office shipped merchandise, with a cost of P45,000 to the branch. c. The branch purchased P60,000 worth of merchandise from outside suppliers. d. The home office transfers delivery equipment with a book value of P75,000 to the branch for Php 90,000. The home office pays transportation charges of P3,000: e. The branch sells P112,500 worth of merchandise. f. The home office pays P3,750 of expenses applicable to the branch but has not charged the branch for them. g. The branch records depreciation of P9,000 on the delivery equipment. h. The branch incurs and records P22,500 of selling and administrative expense. i. The branch remits P52,500 to the home office. Required: Journal entries to record the transaction on the books of the home office and on its branch.

P-1 A branch of Venell Corporation is on its first year of operations. The following series of activities summarize the branch transactions: a. The home office sends P75,000 to the newly formed branch to start its operations. b. The home office shipped merchandise, with a cost of P45,000 to the branch. c. The branch purchased P60,000 worth of merchandise from outside suppliers. d. The home office transfers delivery equipment with a book value of P75,000 to the branch for Php 90,000. The home office pays transportation charges of P3,000: e. The branch sells P112,500 worth of merchandise. f. The home office pays P3,750 of expenses applicable to the branch but has not charged the branch for them. g. The branch records depreciation of P9,000 on the delivery equipment. h. The branch incurs and records P22,500 of selling and administrative expense. i. The branch remits P52,500 to the home office. Required: Journal entries to record the transaction on the books of the home office and on its branch.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter3: Processing Accounting Information

Section: Chapter Questions

Problem 3.9AMCP: Journal Entries Castle Consulting Agency began business in February. The transactions entered into...

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Journal Entries Castle Consulting Agency began business in February. The transactions entered into by Castle during its first month of operations are as follows: Acquired articles of incorporation from the state and issued 10,000 shares of capital stock in exchange for $150,000 in cash. Paid monthly rent of $400. Signed a five-year promissory note for $100,000 at the bank. Purchased software to be used on future jobs. The software costs $950 and is expected to be used on five to eight jobs over the next two years. Billed customers $12,500 for work performed during the month. Paid office personnel $3,000 for the month of February. Received a utility bill of $100. The total amount is due in 30 days. Required Prepare in journal form, the entry to record each transaction.
Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Analyze Dollar General Dollar General Corporation (DG) is a discount retailer with more than 12,000 stores. It offers a wide range of merchandise normally for 10 or less. The following data (in millions) were taken from recent financial statements of Dollar General: a. Compute the asset turnover ratio for Year 2 and Year 1. Round to two decimal places. b. Interpret the change in the asset turnover ratio from Year 1 to Year 2.
Journal Entries Atkins Advertising Agency began business on January 2. The transactions entered into by Atkins during its first month of operations are as follows: Acquired its articles of incorporation from the state and issued 100,000 shares of capital stock in exchange for $200,000 in cash. Purchased an office building for $150,000 in cash. The building is valued at $110,000, and the remainder of the value is assigned to the land. Signed a three-year promissory note at the bank for $125,000. Purchased office equipment at a cost of $50,000, paying $10,000 down and agreeing to pay the remainder in ten days. Paid wages and salaries of $13,000 for the first half of the month. Office employees are paid twice a month. Paid the balance due on the office equipment. Sold $24,000 of advertising during the first month. Customers have until the 15th of the following month to pay their bills. Paid wages and salaries of $15,000 for the second half of the month. Recorded $3,500 in commissions earned by the salespeople during the month. They will be paid on the fifth of the following month. Required Prepare in journal form the entry to record each transaction.
PLEASE SHOW SOLUTIONS IN GOOD ACCOUNTING FORM. 6. On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the year, Kit 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?
Grassley Company completes these transactions during November of the current year (terms for all its credit sales are 2/10, n/30). Nov. 1 Purchased $5,058 of office equipment on credit from Brun Supply, terms n/30. 2 Borrowed $88,500 cash from Wisconsin Bank by signing a long-term note payable. 4 Purchased $33,500 of merchandise from BLR Industries, terms 2/10, n/30. 5 Purchased $1,040 of store supplies on credit from Grebe Company, terms n/30. 8 Sold merchandise on credit to Cyd Rounder, Invoice No. 439, for $6,550 (cost is $3,910). 10 Sold merchandise on credit to Carlos Mantel, Invoice No. 440, for $13,500 (cost is $8,500). 11 Purchased $2,557 of merchandise from Lo Company, terms 2/10, n/30. 12 Sent BLR Industries Check No. 633 in payment of its November 4 purchase less the discount of $670. 15 Issued Check No. 634 for $6,585; payee is Payroll, in payment of sales salaries expense for the first half of the month. 15 Cash sales for the first half of the month are $18,170 (cost is…
Provide a good accounting form in the solution. Thank you! ABC Corporation established its Poblacion branch in 2018. Merchandise costing P120,000 is shipped to this branch. During the initial year, the home office acquires an equipment for P80,000 to be carried in the branch books, and the branch maintains physical possession and use. The equipment has a useful life of 4 years. The branch sells 60 percent of the inventory for P100,800 on account and subsequently collected half of the amount. The branch remits 80 percent in cash to the Home Office. What is the correct Home Office account balance on the records of the branch?
October 1 - Invested P250,000 to start the businessOctober 2 - Paid P30,000 cash for various service equipmentOctober 5 - Paid P7,500 for the monthly rental of the shop.October 6 - Purchased various supplies from Lean Merchandising on credit for P18,500October 7 - Bought additional service equipment for P65,000, with cash downpayment ofP30,000 and balance on credit.October 8 - Completed repair works and collected P45,000 cash.October 10 - Purchased additional supplies for cash amounting to P9,200.October 13 - Billed J. Lumaban for the repair of the car amounting to P15,000 on credit.October 15 - Paid the helper salaries for P12,000.October 18 - Paid the amount due to Lean Merchandising.October 23 - Collected from J. Lumaban.October 25 - Collected cash from a customer for the repair of car amounting to P32,000.October 28 - The owner withdraws cash for P16,000.October 30 - Paid light and water for P7,500 Paid telephone bill for 13,200.October 31 - Paid salaries to shop helper for…
October 1 - Invested P250,000 to start the businessOctober 2 - Paid P30,000 cash for various service equipmentOctober 5 - Paid P7,500 for the monthly rental of the shop.October 6 - Purchased various supplies from Lean Merchandising on credit for P18,500October 7 - Bought additional service equipment for P65,000, with cash downpayment ofP30,000 and balance on credit.October 8 - Completed repair works and collected P45,000 cash.October 10 - Purchased additional supplies for cash amounting to P9,200.October 13 - Billed J. Lumaban for the repair of the car amounting to P15,000 on credit.October 15 - Paid the helper salaries for P12,000.October 18 - Paid the amount due to Lean Merchandising.October 23 - Collected from J. Lumaban.October 25 - Collected cash from a customer for the repair of car amounting to P32,000.October 28 - The owner withdraws cash for P16,000.October 30 - Paid light and water for P7,500 Paid telephone bill for 13,200.October 31 - Paid salaries to shop helper for…
October 1 - Invested P250,000 to start the businessOctober 2 - Paid P30,000 cash for various service equipmentOctober 5 - Paid P7,500 for the monthly rental of the shop.October 6 - Purchased various supplies from Lean Merchandising on credit for P18,500October 7 - Bought additional service equipment for P65,000, with cash downpayment ofP30,000 and balance on credit.October 8 - Completed repair works and collected P45,000 cash.October 10 - Purchased additional supplies for cash amounting to P9,200.October 13 - Billed J. Lumaban for the repair of the car amounting to P15,000 on credit.October 15 - Paid the helper salaries for P12,000.October 18 - Paid the amount due to Lean Merchandising.October 23 - Collected from J. Lumaban.October 25 - Collected cash from a customer for the repair of car amounting to P32,000.October 28 - The owner withdraws cash for P16,000.October 30 - Paid light and water for P7,500 Paid telephone bill for 13,200.October 31 - Paid salaries to shop helper for…
Show the solution in good accounting form. Thank you! Main Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The branch reported an inventory on December 31, 2021: Outsiders, P3,391; Home office, P7,625 The transactions for the year are given effect to in the trial balance below: (see photo attached) 1. Determine the net profit of the Cavite Branch for 2021.
Mbalamwezi Merchandising Enterprise conducted the following transactions during its first month of operations 1st Jan Issued sh500,000 of capital stock to owners 2nd Jan Obtained a loan for sh200,000 from XY Bank 3rd Jan Equipment was purchased for sh400,000 paying by cheque 4th Jan Merchandise inventory was purchased for sh250,000 on account 15th Jan Employees who earned sh5,000 this period were paid 16th Jan A utility bill for sh1,500 was received but not paid 17th Jan Merchandise inventory costing sh100,000 was sold to customers for sh175,000 on account 26th Jan Customers paid sh80,000 on their accounts 29th Jan Dividends of sh5,000 were paid REQUIRED: i) Conduct the debit credit analysis for the above transactions for the month of January 2022. ii) Journalize the events for the month