The Home Office had two branches, Cebu and Davao. At the end of the year, December 31, 2022, the reciprocal account in Cebu Branch was P256,600. However, there were transactions discovered to have errors. • The home office shipped merchandise costing P87,000 to Cebu branch, but was record by the branch in the amount of P78,000. . Cebu collected Davao's customer accounts worth P25,000, but Davao charged its reciprocal account in the amoun of P52,000 and the home office recorded the correct transaction. How much is the unadjusted balance of the Investment in Cebu account?

The Home Office had two branches, Cebu and Davao. At the end of the year, December 31, 2022, the reciprocal account in Cebu Branch was P256,600. However, there were transactions discovered to have errors. • The home office shipped merchandise costing P87,000 to Cebu branch, but was record by the branch in the amount of P78,000. . Cebu collected Davao's customer accounts worth P25,000, but Davao charged its reciprocal account in the amoun of P52,000 and the home office recorded the correct transaction. How much is the unadjusted balance of the Investment in Cebu account?

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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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: A. 243,000 B. 319,000 C. 323,000 D. 239,000
3. The home office of Mang Do Co. ships goods to lloilo branch billing the branch for the goods at P45,000, excluding freight of P6,000. Upon receipt of the goods, lloilo branch was instructed by the home office to transfer these goods to Cagayan de Oro branch. Iloilo branch ships the goods and paid P4,500 for the transfer. If the goods had been shipped by the home office directly to Cagayan de Oro branch, the freight would have been P6,500. What is the journal entry to record receipt of shipment in the books of Cagayan de Oro branch?
On December 31, 20x10, the Investment in Branch account in the home office’s books has a balance of P369,000. In analyzing the transactions involving the home office and the branch for December, the recipient of the transaction either was not yet notified or erroneously recoded the said transaction. A. A P17,000 remittance initiated on December 27, 20x10 was recorded twice in 20x10. B. A merchandise shipment of P21,000 on December 29, 20x10 was recorded at P12,000 on the same year. C. Advertising expense incurred amount to P9,000. 1/4 of the incurred amount was allocated on December 21, 20x10. Upon notification it was recorded in the amount of P22,500 on December 26, 20x10. D. Inventory costing P8,000 was returned on December 19, 20x10. The billing was at cost, it was still in transit by the end of the year. 3. Compute the amount of the Home Office Current account debited in the preparation of the combined statement of financial position as of December 31, 20x10.
JKL Co. Operates a number of branches in Baguio. On June 30, 2021. its XYZ branch showed a Home Office Account balance of P27,350 and the Home Office books showed a Investment branch XYZ of P25,550. The following information may help in reconciling both accounts. > Home office was charged for P1,200 for merchandise returned by XYZ branch (the merchandise is in transit) > A P12,000 shipment, charged by Home Office to XYZ branch was actually sent to and retained by UUU Branch. > Home Office collects an XYZ branch accounts receivable of P3,600 and fails to notify the branch. > A P15,000 shipment, intended and charged to XXX branch was shipped to XYZ branch and retained by the latter. > A P2,000 emergency cash transfer from ZZXXYY was not taken up in the Home Office books. Home office erroneously recorded XYZ 's net income for May, 2021 at P16,275. The branch reported a net income of P12,675. What is the reconciled amount of the Home Office and XYZ branch reciprocal amount?
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AMNESTY PARDON Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a ₱624,000 balance in its “Investment in branch” account while the branch showed a ₱280,800 balance in its “Home office” account. The following information has been gathered: (a) The home office shipped merchandise worth ₱80,000 to the branch during December 20x1 which the latter has received and recorded only in January 20x2. (b) The home office collected ₱40,000 accounts receivable on behalf of the branch. The branch did not yet receive the credit memo sent by the home office. (c) The branch returned damaged merchandise worth ₱120,000 to the home office. The home office did not yet receive the debit memo sent by the branch. (d) A remittance of cash collections amounting to ₱160,000 was not yet recorded by the home office. (e) The home office allocated overhead cost of ₱20,000 to the branch which the latter has recorded twice.…
AMNESTY PARDON Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a ₱624,000 balance in its “Investment in branch” account while the branch showed a ₱280,800 balance in its “Home office” account. The following information has been gathered: (a) The home office shipped merchandise worth ₱80,000 to the branch during December 20x1 which the latter has received and recorded only in January 20x2. (b) The home office collected ₱40,000 accounts receivable on behalf of the branch. The branch did not yet receive the credit memo sent by the home office. (c) The branch returned damaged merchandise worth ₱120,000 to the home office. The home office did not yet receive the debit memo sent by the branch. (d) A remittance of cash collections amounting to ₱160,000 was not yet recorded by the home office. (e) The home office allocated overhead cost of ₱20,000 to the branch which the latter has recorded twice.…
41.Toto Company’s accounts payable balance at December 31, 2020 was P8,000,000 before considering the following data: ∙ Goods shipped to Toto FOB shipping point on December 15, 2020 were lost in transit. The invoice cost of P500,000 was not recorded by Baggao. On January 15, 2021, Toto filed a P500,000 claim against the common carrier. ∙ On December 30, 2020, a vendor authorized Toto to return for full credit goods shipped and billed at P200,000 on December 15, 2020. The returned goods were shipped by Toto on December 31, 2020. A P200,000 credit memo was received and recorded on January 5, 2021. What should Toto report as accounts payable on December 31, 2020?
On June 30, 2021, Alpha Co.'s Mega branch showed a Home Office account balance of $2,735 and the Home Office books showed an investment branch Mega of $2,555. The following additional information is given: Home office was charged for $120 for merchandise returned by Mega branch (merchandise is in transit) $1,200 shipment, charged by Home Office to Mega branch was actually sent and retained by Taco branch. Home office collects a Mega branch accounts receivable of $360 and fails to notify the branch. $1,500 shipment, intended and charged to Pasta branch was shipped to Mega branch and retained by the latter $200 emergency cash transfer from Spaghetti branch was not recorded in the Home Office books Home office erroneusly recorded Mega's net income for May 2021 at $1,627.5 The branch reported a net income of $1,267.5 What is the reconciled amount of the Home Office and Mega branch reciprocal amount?
On December 31, the Investment in Branch account on the home office books of the SG Company shows a balance of P168,000. The following are some of the transactions between the home office and the branch: a. Merchandise billed at P12,300 was shipped by the home office to the branch on December 28. The merchandise is in transit and has not been recognized on the books of the branch. b. The branch collected a home office accounts receivable of P50,000 but failed to notify the home office of this collection. c. The home office was charged P12,800 when the branch returned merchandise to the home office on December 31. The merchandise is in transit. d. The home office recorded incorrectly the branch net income for November at P22,500. The branch reported net income of P25,200. The unadjusted balance of the Home Office account was:
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