PROBLEM 5-3. RECONCILIATION OF HO AND BRANCH ACCOUNTS The following were found in your examination of the interplant accounts between the Home Office and the Legaspi Branch: a. Transfer of fixed assets from Home office amounting to P53,960 was not booked by the branch. b. P10,000 covering marketing expense of another branch was charged by Home Office to Legaspi c. Legaspi recorded a debit note on inventory transfers from Home Office of P75,000 twice. d. Home office recorded cash transfer of P65,700 from Legaspi branch as coming from Naga branch. f. Legaspi recorded a debit memo from Home Office of P4,650 as P4,560. The balance in the Home Office books of its Investment in Legaspi Branch account was a debit balance of P165,920 before adjustments. Required: Prepare a reconciliation statement for the home office and branch

PROBLEM 5-3. RECONCILIATION OF HO AND BRANCH ACCOUNTS The following were found in your examination of the interplant accounts between the Home Office and the Legaspi Branch: a. Transfer of fixed assets from Home office amounting to P53,960 was not booked by the branch. b. P10,000 covering marketing expense of another branch was charged by Home Office to Legaspi c. Legaspi recorded a debit note on inventory transfers from Home Office of P75,000 twice. d. Home office recorded cash transfer of P65,700 from Legaspi branch as coming from Naga branch. f. Legaspi recorded a debit memo from Home Office of P4,650 as P4,560. The balance in the Home Office books of its Investment in Legaspi Branch account was a debit balance of P165,920 before adjustments. Required: Prepare a reconciliation statement for the home office and branch

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.2P: Sales-related transactions The- following selected transactions were completed by Affordable...

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Sales-related transactions The- following selected transactions were completed by Affordable Supplies Co., which sells supplies primarily to wholesalers and occasionally to retail customers. Jan. 6. Sold merchandise on account, $14,000. terms FOB shipping point, n/com. The cost of merchandise sold was $8,400. 8. Sold merchandise on account. $20,000. terms FOB destination. 1/10. n/30. The cost of merchandise sold was $14,000. 16. Sold merchandise on account, $19-500. terms FOB shipping point, n/30. The cost of merchandise sold was $11,700. 18. Received check for amount due for sale on January 8. 19. Issued credit memorandum for $4,500 for merchandise returned from sale on January 16. The cost of the merchandise returned was $2,700. 26. Received check for amount due for sale on January 16 less credit memorandum of January 19. 31. Paid Cashell Delivery Service $3,000 for merchandise delivered during January to customers under shipping terms of FOB destination. 31. Received cheek for amount due for sale of January 6. Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Affordable Supplies Co. Identify each transaction by date.
Purchase-related transactions Journalize entries for the following related transactions of Lilly Heating Air Company: A. Purchased 36,000 of merchandise from Schell Co. on account, terms 1/10, n/30. B. Paid the amount owed on the invoice within the discount period. C. Discovered that 9,000 of the merchandise purchased in (A) was defective and returned items, receiving credit. D. Purchased 5,000 of merchandise from Schell Co. on account, terms n/30. E. Received a refund from Schell Co. for return in (C) less the purchase in (D).
Sandren Co. purchased inventory on credit from Acto Supply Co. for $4,000. Sandren Co. would record this transaction in the ________. A. general journal B. cash receipts journal C. cash disbursements journal D. purchases journal E. sales journal
The following were found in your examination of the interplant accounts between the Home Office and the Bacolod Branch: Transfer of fixed assets from Home Office amounting to 53,960 was not recorded by the branch. Fixed assets used in the branch are required to be maintained in the books of the branch. 10,000 covering marketing expense of another branch was charged by Home Office to Bacolod. Bacolod recorded twice a 75,000 debit note for inventory transfers from Home Office. Home office recorded cash transfer of 65,700 from Bacolod Branch as coming from Tacloban Branch. Bacolod reversed a previous debit memo from Samar Branch amounting to 10,500. Home Office decided that this charge is appropriately Tacloban’s Branch cost. Bacolod recorded a debit memo from Home Office of 4,650 as 4,560. How much are the net adjustments – Debit (Credit) – on the following accounts? Bacolod Branch Current Account Home Office Current Account a. (75,700)…
(5) The company "Z" displays in its accounting records the following costs for the goods purchased to reach safely its warehouses: Invoice value of goods 150.000€, discounts given on the invoice value of the purchase of 11.000 €, transport paid for the transport of goods from the warehouse of the supplier to the premises of the buyer 2.500 €, insurance premiums of goods 3.150 € were paid, packing costs for the transport 8.450 €, fees and customs clearance costs 7.780 €, commissions purchases 4.140 €, administrative expenses 5.550 €, salaries and wages 6.750 €, light-water-phone 3.150€, advertising-promotion costs 3.550€ and financial interest (debit) 1.485€. Requested: To determine the cost of purchase of the quantities purchased.
3. The following information came from the books and records of ABC Corporation and its branch. The balances are as of December 31, 2021, the fourth year of the corporation’s existence. (see image below) There are no shipments in transit between the home office and the branch. Both shipment accounts are properly recorded. The closing inventory at billed prices includes merchandise acquired from the home office in the amount of 210,000 and 90,000 acquired from vendors for a total of 300,000. Determine the correct net income of the branch.
Selected information from the trial balances for the home office and the branch of Lalay Company at December 31, 2012 is provided. The branch acquires merchandise from the home office and outside suppliers. Home Office Branch Sales P60,000 P30,000 Shipments to branch 8,000 Allowance for overvaluation of branch inventory 3,600 Shipments from home office 10,000 Purchase (outsiders) 35,000 5,500 Merchandise inventory 12.01.12 20,000 15,000 Expenses 14,000 6,000 Additional information: Merchandise inventory, December 31, 2012: Home office P20,000 Branch (P7,500 from home office and P2,500 from outsiders) 10,000 1. The combined net income for Home office and branch operations is a. P22,500 c. P25,100 b. P24,600 d. P21,500