13. AMNESTY PARDON Co. is currently preparing its combined financial statements. At December 31,20x1, the home office shows a P624,000 balance in its "Investment in branch" account while thebranch showed a P280,800 balance in its "Home office" account. The following information hasbeen gathered:(a) The home office shipped merchandise worth P80,000 to the branch during December 20x1which the latter has received and recorded only in January 20x2.(b) The home office collected P40,000 accounts receivable on behalf of the branch. The branch didnot yet receive the credit memo sent by the home office.(c) The branch returned damaged merchandise worth P120,000 to the home office. The homeoffice did not yet receive the debit memo sent by the branch.(d) A remittance of cash collections amounting to P160,000 was not yet recorded by the homeoffice.(e) The home office allocated overhead cost of P20,000 to the branch which the latter has recordedtwice.(f) Freight charge of P48,000 paid by the home office for shipments of merchandise to the branchwas recorded by the latter as P4,800.REQUIREMENT: How much is the adjusted balance of the "home office" account?

Particulars Amount (P) Balance of 'Home Account' in the books of Branch 280800 Add:…

3. AMNESTY PARDON Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a P624,000 balance in its "Investment in branch" account while the branch showed a P280,800 balance in its "Home office" account. The following information has been gathered: a) The home office shipped merchandise worth P80,000 to the branch during December 20x1

3. AMNESTY PARDON Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a P624,000 balance in its "Investment in branch" account while the branch showed a P280,800 balance in its "Home office" account. The following information has been gathered: a) The home office shipped merchandise worth P80,000 to the branch during December 20x1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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