Presented below are items taken from the unadjusted trial balance of the Company and its branch on December 31, 2021. It is the company’s policy to bill all branches for merchandise shipments at 30% above cost. Determine: a. How much of the branch inventory on January represents purchases from outsiders? b. Assuming that the branch ending inventory acquired from home office is P 46,800 at billed price, what is the net income (loss) of the branch insofar as the home office is concerned?

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: Home Office Books Branch Books P 360,000 119,880 Shipments to branch Allowance for overvaluation of…

A: Following is the Branch Inventory on January represents purchases from outsiders: Purchases from…

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

A: Particulars Amount Purchase of Merchandise P9,000,000 Less: Ending inventory 1,500,000 Cost of…

Q: What is the correct balance on December 31, 2021 of the Branch Current account per home office…

A:

Q: Home Office Branch Dr. (Cr.) P (3,200,000) Dr. (Cr.) Sales Shipments to branch Shipments from home…

A: Branch accounting refers to a system where separate accounts are maintained for each branch.

Q: Palisade Creek Co. is a merchandising business that uses the perpetual inventory system.The account…

A: Journal entries refer to the process of systematically recording the financial transactions of a…

Q: The following information was taken from the accounting records of Chicoutimi Ltée. and Jonquière…

A: Formula: Average inventory=Opening inventory+Closing inventory2

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: National Distributing Company uses a periodic inventory system to track its merchandise inventory…

A: formula to calculate cost percentage = cost of goods sold / net sales    cost of goods sold =…

Q: (a) Use the above account balances along with the additional information, prepare the adjusting…

A:

Q: At the end of Concord Department Store’s fiscal year on November 30, 2020, these accounts appeared…

A: Income statement is a statement that helps in determining the income or the profit and loss of a…

Q: Home Office Books P 360,000 119,880 Branch Books Shipments to branch Allowance for overvaluation of…

A: Branch accounting is a system of keeping separate books of accounts for each branch whereas Home…

Q: HOW DO I PREPARE AN INCOME STATEMENT TABLE? At the end of Monty Department Store’s fiscal year on…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Yellow Company’s inventory at December 31, 2021 was P570,000 based on a physical count of goods…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

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

A: Allowance for overvaluation of branch inventory shows the excess of the shipment price over the…

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: ending inventory at cost as of January 31, 2021, using the retail method which approximates lower of…

A:

Q: At the end of Novak Department Store’s fiscal year on November 30, 2020, these accounts appeared in…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Selected information from the statement of financial position of FIGHTING Company at November 30 and…

A: Purchases = Ending accounts payable + cash paid to suppliers of inventory -  beginning accounts…

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

A: Accounts receivable is the outstanding amount from the parties to whom the credit sales has been…

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

A: Balances in branch books : Sales P 720,000 Expenses P 240,000 Shipment from home office P 432,000

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: Presented below is information related to Blossom Company, owned by D. Flamont, for the month of…

A: Note: As per the policy, we’ll answer the first question since the exact one wasn’t specified.…

Q: The Cherry Company’s physical inventory on December 31, 2021 showed that merchandise with a cost of…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

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

A: Cost of Goods Sold = (Inventory, January 1 + Purchases) - Inventory, June 30…

Q: Hong Cha-young Company began operations late in 2020. For the first quarter ended March 31, 2020,…

A: Accounts Payable:- It is a current liabilities which has to be paid within a year and it appears in…

Q: Select information below is taken from the December 31, 2020 adjusted trial balance of Rummer…

A: The question is based on the concept of Financial Management.

Q: The following information is available for the Johnson Corporation for 2018:          Beginning…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

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: How do I prepare an income statement table?   At the end of Monty Department Store’s fiscal year…

A: Income Statement of the business is a useful financial statement which shows all income and expenses…

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: Hampton Co. took a physical count of its inventory on December 31.  In addition, it had to decide…

A: Merchandise sold are the goods which are sold by the seller and ownership is transferred to the…

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: Presented below is information related to Sarasota Co. for the month of January 2020. Ending…

A: Adjusting entries are made at the end of an accounting period to comply the revenue and expenses…

Q: . The Cherry Company's physical inventory on December 31, 2021 showed that merchandise with a cost…

A: Correct inventory that should appear in Cherry Company's statement of financial position at December…

Q: Fuque Inc. uses the retail inventory method to estimate ending inventory for its monthly financial…

A: a.

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: On December 31, 2021, Titanium Inc. had recorded $175,000 in its inventory account.  The controller…

A: Ending inventory: It implies to the total raw materials, work in process, and finished goods that…

Q: a. The percentage of profit on cost that the home office uses to bill merchandise shipped to branch…

A: Allowance for overvaluation of branch inventory is also called the unrealized profit at  the branch.…

Q: At the end of Novak Department Store’s fiscal year on November 30, 2020, these accounts appeared in…

A: Income statement is a statement that helps in determining the income or the profit and loss of a…

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: Selected information from the statement of financial position of FAIRVIEW Company at November 30 and…

A: Wages expense for the month of December = Ending wages payable + cash paid for wages - beginning…

Q: The following are accounts taken from the books of WEI LONG TRADING for year ended December 31,…

A: Multi Step income statement :— It is an income that is spilted into small items.    Rows of this…

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.