The following were found in our examination of the inter-plant accounts between the Home Office and the HIJ Branch: > Inventory costing P51,600 was sent to the branch by the home office on December 31, 2021. The billing was at cost, but the branch recorded the transaction at P40,800 > A branch customer erroneously remitted P3,600 to the home office. The home office recorded this cash collection on December 23, 2021. Meanwhile, back at the branch, no entry has been made yet. > A P12,000 branch remittance to the home office initiated on December 27, 2021, was recorded on the home office books on January 3, 2022 > A home office inventory shipment to the branch on December 28, 2021, was recorded by the branch on January 4, 2022; the billing of P24,000 at cost The home office incurred P14,400 of advertising expenses and allocated P6,000 of this amount to the branch on December 15, 2021. The branch has not recorded this transaction. On December 31, 2021, the Home Office Account on HIJ Branch has a balance of P52,800. Compute the net adjustment to Home office account.

The following were found in our examination of the inter-plant accounts between the Home Office and the HIJ Branch: > Inventory costing P51,600 was sent to the branch by the home office on December 31, 2021. The billing was at cost, but the branch recorded the transaction at P40,800 > A branch customer erroneously remitted P3,600 to the home office. The home office recorded this cash collection on December 23, 2021. Meanwhile, back at the branch, no entry has been made yet. > A P12,000 branch remittance to the home office initiated on December 27, 2021, was recorded on the home office books on January 3, 2022 > A home office inventory shipment to the branch on December 28, 2021, was recorded by the branch on January 4, 2022; the billing of P24,000 at cost The home office incurred P14,400 of advertising expenses and allocated P6,000 of this amount to the branch on December 15, 2021. The branch has not recorded this transaction. On December 31, 2021, the Home Office Account on HIJ Branch has a balance of P52,800. Compute the net adjustment to Home office account.

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 4PA: The following transactions were completed by Hammond Auto Supply during January, which is the first...

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The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. If you are using the form-based approach with QuickBooks or general ledger, select Cash Sales as the customer for all cash sales transactions. Required 1. Record the transactions for January using a general journal, page 1. Assume the periodic inventory method is used. If using QuickBooks, record transactions using either the journal entry method or the forms-based approach as directed by your instructor. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. If using QuickBooks or general ledger, ignore Steps 2, 3, and 4. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable (A/R Aging Detail report in QuickBooks) and a schedule of accounts payable (A/P Summary Detail report in QuickBooks). Do the totals equal the balances of the related controlling accounts?
The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. If you are using the form-based approach with QuickBooks or general ledger, select Cash Sales as the customer for all cash sales transactions. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals on scratch paper. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?
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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?
On December 31, the Investment in Branch account on the home office books of the Unlimited Company shows a balance of P168,000. The following are some of the transactions between the home office and the branch:a. Merchandise billed at P12,300 was shipped by the home office to the branch on December 28. The merchandise is in transit and has not been recognized on the books of the branch.b. The branch collected a home office accounts receivable of P50,000 but failed to notify the home office of this collection.c. The home office was charged P12,800 when the branch returned merchandise to the home office on December 31. The merchandise is in transit.d. The home office recorded incorrectly the branch net income for November at P22,500. The branch reported net income of P25,200.1. The unadjusted balance of the Home Office account was: 2. What is the adjusted balance of the Home Office account?
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 image) QUESTION: Using the same information above, shipments to Branch account in the Home Office books on January 1, 2022
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