Mema Inc. branch in Cebu began operations on January 2, 2022. During the first year of operations, the home office shipped merchandise to the Malate branch at cost of P250,000. One-fourth of the merchandise remained unsold at the end of 2022. Freight-in of P2,000 on the shipments from the home office was paid by the branch. The home office should make an adjusting entry for freight-in as follows
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Mema Inc. branch in Cebu began operations on January 2, 2022. During the first year of operations, the home office shipped merchandise to the Malate branch at cost of P250,000. One-fourth of the merchandise remained unsold at the end of 2022. Freight-in of P2,000 on the shipments from the home office was paid by the branch.
The home office should make an
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- A Company’s branch in San Fernando began operations on January 1, 2021. During the first year of operations, the home office shipped merchandise to the San Fernando branch that cost P250,000. Freight-in of P1,500 on the shipments from the home office was paid by the branch. The home office should make an adjusting entry for freight-in as follows: * A. A year-end adjusting entry debiting the branch account for ₱1,500. B. A year-end adjusting entry debiting the home office account for ₱1,500. C. A year-end adjusting entry crediting the branch account for ₱1,500. D. No year-end adjusting entry for the freight charge. 6. A branch is allowed to make sales, carry inventory for resale to customers, and incur normal operating expenses. The home office ships merchandise to the branch at cost plus a 20% markup. The home office uses a loading account. If the loading account is used in its customary fashion, it will track a. Unrealized inventory profits only b. Unrealized inventory profits and…Ramsay Company established a branch in Pasig on March 1, 2022. Shipments of merchandise at billed prices during March were as foallows:March 5, 2022 (at 10% mark-up) P165,000 March 10, 2022 (at 20% mark- 240,000 up) March 20, 2022 (at 25% mark- 175,000 up) On March 21, 2022, the branch returned defective merchandise which was billed at P15,000 (received on March 20, 2022). The monthly report submitted by the branch to the home office for the month of March showed that unsold inventory was P196,000. The branch reported net income for the month of March of P49,500. How much is the cost of goods sold to be reported by the branch for March?ABC Company established a branch in Pasig on March 1, 2022. Shipments of merchandise at billed prices during March were as follows: March 5, 2022 (at P165,000 10% mark-up) March 10, 2022 (at 240,000 20% mark-up) March 20, 2022 (at 175,000 25% mark-up) On March 21, 2022, the branch returned defective merchandise which was billed at P15,000 (received on March 20, 2022). The monthly report submitted by the branch to the home office for the month of March showed that unsold inventory was P196,000. The branch reported net income for the month of March of P49,500. 1. How much is the cost of goods sold to be reported by the branch for March? 2. How much is the true cost of goods sold of the branch in March? 3. How much is the true net income of the branch for March? 4. How much is the allowance for overvaluation to be reported by the home office as of March 31, 2022?
- Ramsay Company established a branch in Pasig on March 1, 2022. Shipments of merchandise at billed prices during March were as foallows:March 5, 2022 (at 10% mark-up) P165,000 March 10, 2022 (at 20% mark- 240,000 up) March 20, 2022 (at 25% mark- 175,000 up) On March 21, 2022, the branch returned defective merchandise which was billed at P15,000 (received on March 20, 2022). The monthly report submitted by the branch to the home office for the month of March showed that unsold inventory was P196,000. The branch reported net income for the month of March of P49,500. How much is the true cost of goods sold of the branch in March?Ramsay Company established a branch in Pasig on March 1, 2022. Shipments of merchandise at billed prices during March were as foallows:March 5, 2022 (at 10% mark-up) P165,000 March 10, 2022 (at 20% mark- 240,000 up) March 20, 2022 (at 25% mark- 175,000 up) On March 21, 2022, the branch returned defective merchandise which was billed at P15,000 (received on March 20, 2022). The monthly report submitted by the branch to the home office for the month of March showed that unsold inventory was P196,000. The branch reported net income for the month of March of P49,500. How much is the true net income of the branch for March?The home office ships merchandise to the branch at 25 percent above cost. At whatamount should the Home Office account be credited if merchandise costing P120,000will be shipped? On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During theyear, Kit Inc. transfers cash and merchandise to the branch worth P15,000 andP45,000 respectively. Freight was paid by the home office worth P1,500 included inthe cost of merchandise. The home office also incurred P5,700 expenses of which 30percent was allocated to the branch. On December 31, 2020, the branch incurred aloss of P4,000. What is the balance of the branch account as per home office books? *Please answer in good Accounting form. Thank you!
- Habiba Company has a single branch in Southwest. On March 1, 2020, the home office accounting records included an Allowance for Overvaluation of Inventories: Southwest Branch ledger account with a credit balance of $32,000. During March, the following transactions occurred: On March 4, the home office shipped merchandise costing $66,000 to the Southwest Branch and billed it at a price representing a 40% markup on the billed price. On March 8, the branch sold 70% of the merchandise received from the home office on march 4 for $90,000 cash. On March 15, the branch sold 20% of the merchandise received from the home office on march 4 to Hope company for $30,000 on credit. On March 22, the home office informed the branch that it had collected 50% of the amount owed by Hope company. On March 28, the branch paid operating expenses of $10,000 cash. On March 29, Hope company paid the remaining amount due to Southwest branch, On March 30, the home office allocated operating expenses of $4,000…Brave Company maintains a branch in Davao City and makes inventory shipment to its branch at 20% above cost. Selected balances taken from the books of Home Office and Branch as of December 31, 2021 are as follows (see image below). P24,350 of the branch’s ending inventory came from outside suppliers.1. How much is the Allowance for Overvaluation after adjustment?ABC Company established a branch in Pasig on March 1, 2022. Shipments of merchandise at billed prices during March were as follows: March 5, 2022 (at 10% mark-up) P165,000 March 10, 2022 (at 20% mark-up) 240,000 March 20, 2022 (at 25% mark-up) 175,000 On March 21, 2022, the branch returned defective merchandise which was billed at P15,000 (received on March 20, 20221 The monthly report submitted by the branch to the home office for the month of March showed that unsold inventory was P196,000. The branch reported net income for the month of March of P49,500. How much is the true net income of the branch for March and how much is the allowance for overvaluation to be reported by the home office as of March 31, 2022?
- Goods costing $20,000 are purchased on account on April 1, 2021, with credit terms 2/10 n/30. On April 3, a $4,000 credit was received from the supplier for goods returned. Give the journal entry on April 9, 2021, to record the payment of the balance due within the discount period. When do companies normally post to the subsidiary ledger accounts the general ledger control accounts? Describe the relationship between the control account and subsidiary ledger accounts.The Company has a single branch in Southwest. On March 1, 2020, the home office accounting records included an Allowance for Overvaluation of Inventories: Southwest Branch ledger account with a credit balance of $32,000. During March, the following transactions occurred: On March 4, the home office shipped merchandise costing $66,000 to the Southwest Branch and billed it at a price representing a 40% markup on the billed price.On March 8, the branch sold 70% of the merchandise received from the home office on march 4 for $90,000 cash.On March 15, the branch sold 20% of the merchandise received from the home office on march 4 to Hope company for $30,000 on credit.On March 22, the home office informed the branch that it had collected 50% of the amount owed by Hope company.On March 28, the branch paid operating expenses of $10,000 cash.On March 29, Hope company paid the remaining amount due to Southwest branch,On March 30, the home office allocated operating expenses of $4,000 to the…ABC Co. has a branch operation in Morayta. Merchandise is shipped to the branch at a transfer price of 30% more than cost. At the end of 2022, ABC Co. has determined that the branch should be allocated common expenses but the branch has not yet been notified of the following allocated amounts: Marketing expense P15,000 Rent expense 10,000 Other expense 5,000 In addition, a shipment costing P25,000 is still in transit as of December 31, 2022 while a P12,000 branch remittance has not been received by the home office due to limited bank operations as of December 31. The branch’s accountant is unaware of the accounting treatment of shipments of inventory from the home office and has recorded these as normal purchases. The beginning accounts payable includes P130,000 payable to the home office. A trial balance of the home office and the branch, before any necessary adjustments, is provided: ABC Co. Branch Debits: Cash P…