HO operates a branch in Makati. On October 31, 2017, the Branch Current account had a balance of P300,000. In the process of reconciling the reciprocal current accounts, the items that follow were noted: a. The home office had billed the branch P75,000 for merchandise shipment still in transit of October 31. b. A home office customer’s account for P21,000 collected by the branch on October 26 has not been reported to the home office. c. The branch has failed to recognize its P5,000 share of advertising expense paid for by the home office. d. The branch reported a net income of P43,500 during the fiscal period then ended; this was erroneously taken up as P45,500 by the home office. Assuming that all other transactions related to the home office and its branch are correctly recorded, the unadjusted balance of the home office current account as of October 31, 2017 is:
HO operates a branch in Makati. On October 31, 2017, the Branch Current account had a balance of P300,000. In the process of reconciling the reciprocal current accounts, the items that follow were noted:
a. The home office had billed the branch P75,000 for merchandise shipment still in transit of October 31.
b. A home office customer’s account for P21,000 collected by the branch on October 26 has not been reported to the home office.
c. The branch has failed to recognize its P5,000 share of advertising expense paid for by the home office.
d. The branch reported a net income of P43,500 during the fiscal period then ended; this was erroneously taken up as P45,500 by the home office.
Assuming that all other transactions related to the home office and its branch are correctly recorded, the unadjusted balance of the home office current account as of October 31, 2017 is:
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