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, Illoilo 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?

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, Illoilo 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?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

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…
Moises Corporation has two branch, Branch Ollie and Branch Ver. The Home Office shipped P 5,000 of merchandise to Branch Ollie and prepaid the freight charges of P 300. A short time thereafter, Branch Ollie was instructed to reship this merchandise to Branch Ver at a prepaid freight cost of P 500. Freight charges for this merchandise normally cost P 600 when shipped from the home office directly to Branch Ver. Required: a. Prepare journal entries in the books of Branch Ollie. b. Prepare journal entries in the books of Branch Ver. c. Prepare journal entries for the home office.
Journalize the transaction in the books of Home Office, Branch EE, and Branch XX.
Beta Company has incurred the following costs during the current year: Cost of purchases based on vendor's invoices.. Trade discounts on purchases already deducted from the vendor's invoices. • Importation duties and taxes.. • Freight and insurance on purchases. • Other handling costs relating to imports. Salaries of accounting department. • Fees paid to customs broker who processed the importation documents.. • Sales commission paid to sales agents. P 5,000,000 500,000 400,000 1,000,000 100,000 600,000 200,000 300,000 After-sales warranty costs. What is the total cost of purchases? 250,000 A. P5,700,000 В. Р6,100,000 С. Р6,700,000 D. P6,500,000
On December 15, 2022, LYCHEE Company purchased goods costing ₱ 100,000. The terms were FOB shipping point. Costs incurred by the entity in connection with the purchase and delivery of the goods were as follows: Normal freight charge ₱ 3,000 Handling cost ₱ 2,000 Insurance on shipment ₱ 500 Abnormal freight charge for express shipping ₱ 1,200 The goods were received on December 18, 2022. What is the amount that should be charged to inventory and expense respectively? A. ₱ 3,000 and 3,700 B. ₱ 5,000 and 1,700 C. ₱ 5,500 and 1,200 D. ₱ 6, 700 and 0
On December 27, 20x1, ABC Co. received a sale order for a credit sale of goods with selling price of ₱3,000. The goods were shipped by ABC on December 31, 20x1 and were received by the buyer on January 2, 20x2. The related shipping costs amounted to ₱20. ABC Co. collected the receivable on January 5, 20x2. If the term of the sale is FOB destination, freight collect, how much net cash is collected on January 5, 20x2?
Dawn Co. purchased goods with invoice price of ₱3,000 on account on December 27, 20x1. The related shipping costs amounted to ₱50. The seller shipped the goods on December 31, 20x1. Dawn Co. received the goods on January 2, 20x2 and settled the account on January 5, 20x2. 1. How much is the net cash payment to the supplier if the terms of the shipment are FOB destination, freight collect?
Home Office transferred merchandise worth 320,000. Home Office paid for the freightof 5,000 to be taken up in branch books. Requirements:a. Prepare the journal entries for both the Home Office and Branch books based on theabove transactions.
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 December 27, 20x1, YGS Co. received a sale order for a credit sale of goods with selling price of P300,000. The goods were shipped by YGS on December 31, 20x1 and were received by the buyer on January 2, 20x2. The related shipping costs amounted to P200. YGS Co. collected the receivable on January 5, 20x2. If the term of the sale is FOB destination, freight collect, how much net cash is collected on January 5, 20x27
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 amount of P52,000 and the home office recorded the correct transaction. 4 . How much is the unadjusted balance of the Investment in Cebu account? 220,600 247,600 O 238,600 O 265,600
On October 1, 2022, the Intra Main Office established a sales agency in Cebu.-The main office sent samples of its merchandise amounting to P8,400 and working fund amounting to P72,000 to be maintained on the imprest basis. The samples sent were intended to last until June 1, 2023.-During the first two months of operations, the agency transmitted to the home office sale of goods costing P291,600, but the home office was not able to fill-up 25% of the said transmitted sales order.-Collections from customers amounted to P73,941, net of 2% sales discount.-Payments made by the agency during October and November were as follows: annual rent of P57,600, advertising expense worth P5,600 and utilities amounting to P7,200.-It purchased an equipment worth P9,000 which will be depreciated at 20% per annum.-The gross profit on sales agency order is 20% of sales Net income of the agency for the two months ended November 30, 2022 is:

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS