6. On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the year, Kit Inc. transfers cash and merchandise to the branch worth P15,000 and P45,000 respectively. Freight was paid by the home office worth P1,500 included in the cost of merchandise. The home office also incurred P5,700 expenses of which 30 percent was allocated to the branch. On December 31, 2020, the branch incurred a loss of P4,000. What is the balance of the branch account as per home office books

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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6. On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the
year, Kit Inc. transfers cash and merchandise to the branch worth P15,000 and
P45,000 respectively. Freight was paid by the home office worth P1,500 included in
the cost of merchandise. The home office also incurred P5,700 expenses of which 30
percent was allocated to the branch. On December 31, 2020, the branch incurred a
loss of P4,000. What is the balance of the branch account as per home office books *
Transcribed Image Text:6. On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the year, Kit Inc. transfers cash and merchandise to the branch worth P15,000 and P45,000 respectively. Freight was paid by the home office worth P1,500 included in the cost of merchandise. The home office also incurred P5,700 expenses of which 30 percent was allocated to the branch. On December 31, 2020, the branch incurred a loss of P4,000. What is the balance of the branch account as per home office books *
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