What is the balance of the branch account as per home office books?
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Q: what is the balance of the branch account as per home office books
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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?
*Please answer in good Acctg form. Thanks!
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- 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. Present solution in good accounting form.On January 1, 2022, first year of operations, Manila Company opened a branch in Bacolod and the following transactions were ascertained from the year: Manila Co. sent P150,000 worth of merchandise to its Bacolod branch. Manila Co. purchased merchandise from vendors worth P280,000. Sales for Manila Co. and Bacolod were P350,000 and P175,000, respectively. Bacolod remitted P35,000 cash to its home office. Manila Co. incurred, but not yet paid P60,000 worth of expenses of which 30% was allocated to the branch during the year. Ending inventory for Bacolod Co. and Manila Co. were P15,500 and P23,500, respectively. 1. What is the balance of the Branch Current Bacolod for the year ended December 31, 2022? (Assuming reciprocal accounts have not yet been eliminated) 2. What is the cost of goods sold reported by Manila Co. for the year ended December 31, 2022?A. P 264,500B. P 414,500C. P 114,500D. P 106,500On July 2, 2022, Honesty Co. consigned 3,200 books costing P60 and retailing for P100 each to Integrity Co. Freight cost paid by Honesty Co. amounted to P3,200. On September 30, 2021, Honesty Co. received from Integrity Co. the amount of ₱127,620 in full settlement of the balance due. The consignee deducted a commission of ₱20 for each book sold, ₱180 for delivery expenses and ₱200 for advertising expense.How many books were actually sold by Integrity Co.? (No peso sign on the answer)
- The following transactions relating to branch SG and branch Popsters are the following: • On September 30, 2020, branch SG collected branch Popsters' accounts receivable of P80,000 less 3%discount. • On October 31, 2020, home office shipped merchandise costing P400,000 to branch SG. Freight of P6,000 was paid by the home office. It is the policy of the company to bill its branches at 25% above cost. • On November 30, 2020, upon the instruction of the home office, branch SG reshipped a quarter of the above merchandise to branch Popsters with freight of P3,000 (freight-collect). Had the goods been shipped directly to branch Popsters, the freight would have been only P1,400. What is the home office current account of branch SG as of October 31, 2020?On August 1, 2019, GREEN CO, a home office established two branches: ORANGE branch and APRICOT branch. GREEN, transferred P280,000 worth of cash and P1,225,000 worth of merchandise to its ORANGE branch. On August 15, the head office instructed ORANGE to transfer three-fourths of the merchandise and cash received to APRICOT branch. In addition, on October 6, 2019, shipments from the main office received by ORANGE branch amounting to P437,500 and freight, collect amounting to P22,750. Three-fifths of the said shipments were sold by ORANGE branch to customers. On November 9, 2019, upon instruction of the home office, ORANGE branch transferred to APRICOT half of the remaining immediate prior month shipments from GREEN. The receiving branch paid additional freight in the amount of P8,750. Had the merchandise been shipped from GREEN directly to APRICOT, only P6,650 worth of freight would have been incurred. Compute the balance of the Investment in APRICOT branch account in the separate…On January 15, 2021, X Company bought merchandise from Y Company amounting to P30,000 (VAT exclusive). Terms 2/10, n/30, FOB shipping point, freight collect. Amount of freight cost is P1,000, The amount of Accounts Receivable to be recorded on the date of purchase will be⚫
- On July 2, 2022, Howard Co. consigned 3,200 books costing P60 and retailing for P100 each to Ines Co. Freight cost paid by Howard Co. amounted to P3,200. On September 30, 2021, Howard Co. received from Ines Co. the amount of ₱127,620 in full settlement of the balance due. The consignee deducted a commission of ₱20 for each book sold, ₱180 for delivery expenses and ₱200 for advertising expense.How many books were actually sold by Ines Co.?Huhu Company and Hihi Company engaged in the following transactions during the month of July 2021. On July 16, Huhu Company sold merchandise to Hihi Company for P6,000, terms 2/10, n/30. Shipping costs were P600. Hihi Company received the goods and Huhu Company’s invoice on July 17. On July 24, Hihi Company sent the payment to Huhu, which Huhu received on July 25. Additional Info: Both Huhu and Hihi use the periodic inventory system. The arrangement regarding the shipping costs are as follows: Shipping terms FOB destination, Freight Collect. Hihi paid the shipping costs on July 17 and deducted the P600 from the amount owed to Huhu Company. A copy of freight bill to Huhu Company was provided with the July 24 cash remittance. Hihi remitted P5,280 on July 24. How much is the accounts payable of Hihi before remittances?(ADOPTED) Newton General Merchandise had the following transactions in March 2021:March 2Purchased merchandise amounting to Php 36,000. Terms: 2/10, n/30 FOB shipping point. Paid the freight bill amounting to Php 4,000.March 5Returned Php 3,000 of the merchandise purchased on March 2 because they were defective.March 8Sold merchandise on account for Php 10,000. Terms 3/15, n/30. The cost of the merchandise sold was Php 6,000.March 10Paid the purchase made on March 2 less the return and the discount.March 12Received Php 2,000 of the merchandise sold on March 8. The cost of the merchandise returned was Php 1,200.March 22Received cash from the March 8 customer in full settlement of his account less the return and the discount.REQUIRED:Prepare the appropriate journal entries for both periodic and perpetual inventory systems.
- On June 15, 2022, Robinson Company received a shipment of merchandise from Taytay Company with a selling price of P100,000. The consigned goods cost Taytay Company P70,000. Freight charges of P5,000 had been paid by Taytay Company for the shipment. The terms of the consignment are the following: · 2/10, n/30; · 15% commission based on gross sales· Cash discounts taken by customers, expenses applicable to the goods on consignment and any form of cash advanced to the consignor are deductible from the remittance by the consignee. Robinson Company advanced P10,000 to Taytay Company upon receipt of the shipment. An expense related to sold units of P3,500 was paid by Robinson Company. By June 2022, 80% of the shipment had been sold, and 90% of the resulting accounts receivable had been collected, all within the discount period. Remittance was made on June 30, 2022.Determine the net income on consignment.On December 1, 2021, X Co. bought merchandise from Y Co. costing P50,000, terms 2/10, n/30, FOB shipping point. Y Co. prepaid the freight of P6,000 on December 2, 2021. On December 4, Y Co. issued a credit memorandum for damaged merchandise returned by X Co. amounting to P2,000. X Co. paid in full the balance due on December 11, 2021. 1. How much is the cash discount on December 11, 2021? A. P1.080 B. P5,880 C. P960 D. POHuhu Company and Hihi Company engaged in the following transactions during the month of July 2021. On July 16, Huhu Company sold merchandise to Hihi Company for P6,000, terms 2/10, n/30. Shipping costs were P600. Hihi Company received the goods and Huhu Company’s invoice on July 17. On July 24, Hihi Company sent the payment to Huhu, which Huhu received on July 25. Additional Info: c. Both Huhu and Hihi use the periodic inventory system. d. The arrangement regarding the shipping costs are as follows: Shipping terms FOB Shipping Point, Freight Collect. Hihi paid the shipping costs on July 17 and Hihi remitted P5,880 on July 24. What is the balance of accounts payable after remittances?
