4. The National Home Company ships and bills merchandise to its provincial branch at cost. The branch carries its own accounts receivable and make its own collections. The branch also pays its expenses. The transactions for 2009 are reflected in the branch trial balance that follows: Debit Credit Cash 11,900 Nation Home Co Current 90,000 Shipments from Nation Home Co, 120,000 Accounts Receivable 62,500 Expenses 8,100 Sales 112,500 December 31 Inventory P30,000 The net profit of the branch was? In the home office books, the Branch Current account should be?

4. The National Home Company ships and bills merchandise to its provincial branch at cost. The branch carries its own accounts receivable and make its own collections. The branch also pays its expenses. The transactions for 2009 are reflected in the branch trial balance that follows: Debit Credit Cash 11,900 Nation Home Co Current 90,000 Shipments from Nation Home Co, 120,000 Accounts Receivable 62,500 Expenses 8,100 Sales 112,500 December 31 Inventory P30,000 The net profit of the branch was? In the home office books, the Branch Current account should be?

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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Question

4.
The National Home Company ships and bills merchandise to its provincial branch at cost.
The branch carries its own accounts receivable and make its own collections. The branch also
pays its expenses. The transactions for 2009 are reflected in the branch trial balance that
follows:
Debit
Credit
Cash
11,900
Nation Home Co Current
90,000
Shipments from Nation Home Co,
120,000
Accounts Receivable
62,500
Expenses
8,100
Sales
112,500
December 31 Inventory
P30,000
The net profit of the branch was?
In the home office books, the Branch Current account should be?

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