Problem 9-2 The trial balances before the adjustment for the home office and the branch of the Spade Company show the following items on December 31. Differences in the shipments account balances result from the home office policy of billing the branch for merchandise at 20% above cost. Allowance for overvaluation of branch merchandise a. Shipments to branch Purchases (outsiders) Shipments from home office Merchandise inventory, December 1 Required: Home office books P36,000 P80,000 Branch books P 25,000 P 96,000 P150,000 with an b. Assuming that the branch ending inventory is P100,000, composed of merchandise from the home office at billed price, P84,000, and merchandise from outsiders at cost, P16,000, what entry is necessary in the home office books to adjust the allowance account at the end of the fiscal period?

Problem 9-2 The trial balances before the adjustment for the home office and the branch of the Spade Company show the following items on December 31. Differences in the shipments account balances result from the home office policy of billing the branch for merchandise at 20% above cost. Allowance for overvaluation of branch merchandise a. Shipments to branch Purchases (outsiders) Shipments from home office Merchandise inventory, December 1 Required: Home office books P36,000 P80,000 Branch books P 25,000 P 96,000 P150,000 with an b. Assuming that the branch ending inventory is P100,000, composed of merchandise from the home office at billed price, P84,000, and merchandise from outsiders at cost, P16,000, what entry is necessary in the home office books to adjust the allowance account at the end of the fiscal period?

Name: Problem 9-2The trial balances before the adjustment for the home offi
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Description: Problem 9-2The trial balances before the adjustment for the home office and the branch of the SpadeCompany show the following items on December 31. Differences in the shipments accountbalances result from the home office policy of billing the branch

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter16: Financial Statements And Closing Entries For A Corporation

Section16.1: Preparing An Income Statement

Problem 1OYO

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