The Investment in Antipolo Branch in the books of the home office is lower than the Home Office Current in the books of the branch. Which of the following statements would explain the difference?
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- The unadjusted balance of Investment in Branch account of a home office is P364,000. Relevant informationfollows:a. The branch did not record a P24,000 credit memo from the home office.b. The branch did not record a debit memo from the home office amounting to P18,000.c. The home office erroneously recorded twice a P40,000 credit memo from the branch.d. The home office recorded a P60,000 debit memo from the branch as P6,000.e. The branch sent by mistake a P14,000 credit memo to the home office. The home office did notrecord it.REQUIRED: Determine the following:9. Adjusted balance of Investment in Branch account _____________10. Unadjusted balance of the Home Office accountA company has an external sales agency. The company allows the sales agency to incur and pay for all its expenses and approved asset purchases. The company has never transferred any tangible assets to the agency and created the agency by simply establishing an agency working capital fund of P40,000. Whenever the sales agency needs more working capital it transmits the receipts for what it has spent back to the main office which then sends cash back to the agency to cover the remitted items. Small amounts of merchandise inventory are sent to the agency for display and demonstration purposes. These items are transferred at cost. An operation such as the one descried above most closely resembles a Accounts payable subsidiary ledger Accounts receivable subsidiary ledger Voucher system Petty Cash systemA company has an external sales agency. The company allows the sales agency to incur and pay for all its expenses and approved asset purchases. The company has never transferred any tangible assets to the agency and created the agency by simply establishing an agency working capital fund of P40,000. Whenever the sales agency needs more working capital it transmits the receipts for what it has spent back to the main office which then sends cash back to the agency to cover the remitted items. Small amounts of merchandise inventory are sent to the agency for display and demonstration purposes. These items are transferred at cost. An operation such as the one descried above most closely resembles a(n): Petty Cashsystem Accounts receivable subsidiaryledger Accounts payable subsidiaryledger Vouchersystem
- A company has an external sales agency. The company allows the sales agency to incur and pay for all its expenses and approved asset purchases. The company has never transferred any tangible assets to the agency and created the agency by simply establishing an agency working capital fund of P40,000. Whenever the sales agency needs more working capital it transmits the receipts for what it has spent back to the main office which then sends cash back to the agency to cover the remitted items. Small amounts of merchandise inventory are sent to the agency for display and demonstration purposes. These items are transferred at cost. An operation such as the one descried above most closely resembles a(n): A. Accounts payable subsidiary ledgerB. Accounts receivable subsidiary ledgerC. Petty Cash systemD. Voucher systemASTATIC UNSTABLE Co. is currently preparing its combined financial statements. At December31, 20x1, the home office shows a ₱728,000 balance in its “Investment in branch” account. Thefollowing information has been gathered during the reconciliation process: (a) A credit memo sent by the home office to the branch amounting to ₱48,000 was not recordedby the branch.(b) A debit memo sent by the home office to the branch amounting to ₱36,000 was not recorded bythe branch.(c) A credit memo sent by the branch to the home office amounting to ₱80,000 was recorded bythe home office twice.(d) A debit memo sent by the branch to the home office amounting to ₱120,000 was recorded bythe home office as ₱12,000.(e) The branch sent by mistake a credit memo amounting to ₱28,000 to the home office. The homeoffice did not record it.REQUIREMENT: How much is the unadjusted balance of the “Home office” account? (COMPLETE SOLUTION PLEASE)What is the most likely explanation if at the end a calendar period the balance of the Investment in Branch ledger account in the accounting records of the home office is forty thousand an the balance of the Home Office Account in accounting in the accounting records of the branch (after the branch recorded closing entries) is forty thousand five hundred. A. Net Income of the branch not recorded by the home office.B. Remittance of cash to the branch not recorded by the home office.C. Collection by the home office of a branch note receivable not recorded by the branchD. Net loss of the branch not recorded by the home office.
- Question ABC Limited is a manufacturing firm with a workforce of more than 100 employees. Mr Peter has recently joined the firm as the account payable clerk. Miss Emma is the accounting department head, and she is concerned about the cash disbursement system. Therefore, she has asked Mr Peter to analyse the firm's cash disbursement system and identify the internal control weaknesses from the system. Following is the description of the cash disbursement system. In the temporary file, the account payable clerk receives the supplier's invoice and reconciles it with the purchase order. The accounts payable clerk records the purchase in the purchases journal from the clerk's computer terminal and records the liability by adding a record to accounts payable subsidiary ledger. The clerk then updates the inventory control and accounts payable control accounts in the general ledger. The purchases order and invoice are later filed in the department. Each day, the clerk visually searches the…Jewel-Osco evaluated three different pay-by-touch systems that identify a customer by a finger scan and automatically deduct the amount of the bill directly from their checking account. The revenue alternatives were ranked according to increasing initial investment and identified as alternatives A, B, and C. Comparison i*, % Δi*, % A to DN 23.4 B to DN 8.1 C to DN 16.6 B vs. A −5.1 C vs. A 12.0 C vs. B 83.9 Based on the alternative ROR values (i*), the incremental ROR values (Δi*), and the company’s MARR of 16% per year, the alternative to select is: (a) A (b) B (c) C (d) DNThe following transactions pertain to a branch’s first month’s operations:a. The home office sent P9,000 cash to the branch.b. The home office shipped inventory costing P40,000 to the branch; the intercompany billing was for P50,000.c. Branch inventory purchases from outside vendors totaled P30,000.d. Branch sales on account were P80,000.e. The home office allocated P2,000 in advertising expense to the branch.f. Branch collections on accounts receivable were P45,000.g. Branch operating expenses of P14,000 were incurred, none of which were paid at month-end.h. The branch remitted P17,000 to the home office.i. The branch’s ending inventory (as reported in its balance sheet) is composed of:Acquired from outside vendors P12,000Acquired from home office (at billing price) 20,000Requirements:a. Prepare journal entries in the books of Home Office and Branch.b. Prepare branch’s income statement for its first month’s operation
- What is the most likely explanation if at the end a calendar period the balance of the Investment in Branch ledger account in the accounting records of the home office is forty thousand an the balance of the Home Office Account in accounting in the accounting records of the branch (after the branch recorded closing entries) is forty thousand five hundred. a. Collection by the home office of a branch note receivable not recorded by the branch b. Net loss of the branch not recorded by the home office. c. Remittance of cash to the branch not recorded by the home office. d. Net Income of the branch not recorded by the home office. ABC plans to acquire DEF has substantial depreciable assets that have a fair values in excess of their book values. Considering only the tax impact, which of the following statement is true? a. ABC would prefer to purchase DEF’s assets and DEF would prefer to sell its shares to ABC. b. Both ABC and DEF would prefer ABC to purchase DEF’s shares. c. Both ABC and…Starlight Products specialise in direct marketing. The company has expanded and needs a new building in which to house its offices and warehousing facilities. Cheque Bank was approached for finance to support this project and approval was received. However, the company also had existing credit lines on their financial statements from debentures issued and a loan from their parent company. With reference to this example, illustrate the difference between specific and general borrowings clearly and explain how the borrowing costs would be calculated in each caseABC Limited is a manufacturing firm with a workforce of more than 100 employees. Mr Peter has recently joined the firm as the account payable clerk. Miss Emma is the accounting department head, and she is concerned about the cash disbursement system. Therefore, she has asked Mr Peter to analyse the firm's cash disbursement system and identify the internal control weaknesses from the system. Following is the description of the cash disbursement system.In the temporary file, the account payable clerk receives the supplier's invoice and reconciles it with the purchase order. The accounts payable clerk records the purchase in the purchases journal from the clerk's computer terminal and records the liability by adding a record to accounts payable subsidiary ledger. The clerk then updates the inventory control and accounts payable control accounts in the general ledger. The purchases order and invoice are later filed in the department.Each day, the clerk visually searches the accounts…