1. The home office transfers inventory worth P600,000 to Branch#1. Freight paid by the home office is P40,000. Later on, the home office instructs Branch#1 to transfer the merchandise to Branch#2. Branch#1 pays freight of P12,000. If the merchandise had been shipped from home office to Branch#2, freight cost would have been P56,000. Entries to record the transactions described includes an entry to record difference (variance) on freight in the home office book in the amount of: 2. On June 1, 2023, The Capitol Inc. established an agency in District 12, sending samples costing P4,200,000 which are useful until May 31, 2024 and have a salvage value of P840,000. A working fund of P3,412,500 is to be maintained using imprest basis. During 2023, the agency submitted to the home office sales order amounting to P35,437,500. Sales per invoice were P27,562,500 which were duly approved by the home office. Collections during the year amounted to P14,700,000 net of 2% sales discount. The cost of merchandise sold during the year is 70% of the gross selling price. Vouchers for the expenses amounted to P1,837,500. How much is the net income would be reported by District 12 agency on December 31, 2023?
1. The home office transfers inventory worth P600,000 to Branch#1. Freight paid by the home office is P40,000. Later on, the home office instructs Branch#1 to transfer the merchandise to Branch#2. Branch#1 pays freight of P12,000. If the merchandise had been shipped from home office to Branch#2, freight cost would have been P56,000.
Entries to record the transactions described includes an entry to record difference (variance) on freight in the home office book in the amount of:
2. On June 1, 2023, The Capitol Inc. established an agency in District 12, sending samples costing P4,200,000 which are useful until May 31, 2024 and have a salvage value of P840,000. A working fund of P3,412,500 is to be maintained using imprest basis. During 2023, the agency submitted to the home office sales order amounting to P35,437,500. Sales per invoice were P27,562,500 which were duly approved by the home office. Collections during the year amounted to P14,700,000 net of 2% sales discount. The cost of merchandise sold during the year is 70% of the gross selling price. Vouchers for the expenses amounted to P1,837,500.
How much is the net income would be reported by District 12 agency on December 31, 2023?
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