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16. ASTATIC UNSTABLE Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a P728,000 balance in its "Investment in branch" account. The following information has been gathered during the reconciliation process: (a) A credit memo sent by the home office to the branch amounting to P48,000 was not recorded by the branch. (b) A debit memo sent by the home office to the branch amounting to P36,000 was not recorded by the branch. (c) A credit memo sent by the branch to the home office amounting to P80,000 was recorded by the home office twice. (d) A debit memo sent by the branch to the home office amounting to P120,000 was recorded by the home office as P12,000. (e) The branch sent by mistake a credit memo amounting to P28,000 to the home office. The home office did not record it. REQUIREMENT: How much is the unadjusted balance of the "Home office" account?

16. ASTATIC UNSTABLE Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a P728,000 balance in its "Investment in branch" account. The following information has been gathered during the reconciliation process: (a) A credit memo sent by the home office to the branch amounting to P48,000 was not recorded by the branch. (b) A debit memo sent by the home office to the branch amounting to P36,000 was not recorded by the branch. (c) A credit memo sent by the branch to the home office amounting to P80,000 was recorded by the home office twice. (d) A debit memo sent by the branch to the home office amounting to P120,000 was recorded by the home office as P12,000. (e) The branch sent by mistake a credit memo amounting to P28,000 to the home office. The home office did not record it. REQUIREMENT: How much is the unadjusted balance of the "Home office" account?

FINANCIAL ACCOUNTING
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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16. ASTATIC UNSTABLE Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a P728,000 balance in its "Investment in branch" account. The following information has been gathered during the reconciliation process: (a) A credit memo sent by the home office to the branch amounting to P48,000 was not recorded by the branch. (b) A debit memo sent by the home office to the branch amounting to P36,000 was not recorded by the branch. (c) A credit memo sent by the branch to the home office amounting to P80,000 was recorded by the home office twice. (d) A debit memo sent by the branch to the home office amounting to P120,000 was recorded by the home office as P12,000. (e) The branch sent by mistake a credit memo amounting to P28,000 to the home office. The home office did not record it. REQUIREMENT: How much is the unadjusted balance of the "Home office" account?
Transcribed Image Text:16. ASTATIC UNSTABLE Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a P728,000 balance in its "Investment in branch" account. The following information has been gathered during the reconciliation process: (a) A credit memo sent by the home office to the branch amounting to P48,000 was not recorded by the branch. (b) A debit memo sent by the home office to the branch amounting to P36,000 was not recorded by the branch. (c) A credit memo sent by the branch to the home office amounting to P80,000 was recorded by the home office twice. (d) A debit memo sent by the branch to the home office amounting to P120,000 was recorded by the home office as P12,000. (e) The branch sent by mistake a credit memo amounting to P28,000 to the home office. The home office did not record it. REQUIREMENT: How much is the unadjusted balance of the "Home office" account?
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