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7. The year-end balance of the "Investment in Dagupan Branch in the home office books has a balance of P225,770. The following information was determined during the reconciliation: CHAPTER 11 | HO BRANCH | MILLAN a. Office equipment costing the home office P3,500 was recorded by the branch as P350. b. Insurance premium of P675 charged by the home office was taken up twice by the branch. c. Freight charge on merchandise made by the home office for P1,125 was recorded in the branch books as P1,215. d. Home office credit memo representing a discount on merchandise for P800 was not recorded by the branch. e. The branch failed to take up a P700 debit memo from the home office representing the share of the branch in advertising f. The home office inadvertently recorded a remittance for P3,000 from its Cebu branch as a remittance from its Dagupan branch How much are the unadjusted and adjusted balances of the "Home office account as of year-end? ANSWER: Unadjusted: 226, 485 – Adjusted: 228,700

7. The year-end balance of the "Investment in Dagupan Branch in the home office books has a balance of P225,770. The following information was determined during the reconciliation: CHAPTER 11 | HO BRANCH | MILLAN a. Office equipment costing the home office P3,500 was recorded by the branch as P350. b. Insurance premium of P675 charged by the home office was taken up twice by the branch. c. Freight charge on merchandise made by the home office for P1,125 was recorded in the branch books as P1,215. d. Home office credit memo representing a discount on merchandise for P800 was not recorded by the branch. e. The branch failed to take up a P700 debit memo from the home office representing the share of the branch in advertising f. The home office inadvertently recorded a remittance for P3,000 from its Cebu branch as a remittance from its Dagupan branch How much are the unadjusted and adjusted balances of the "Home office account as of year-end? ANSWER: Unadjusted: 226, 485 – Adjusted: 228,700

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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7. The year-end balance of the "Investment in Dagupan Branch in the home office books has a balance of P225,770. The following information was determined during the reconciliation: CHAPTER 11 | HO BRANCH | MILLAN a. Office equipment costing the home office P3,500 was recorded by the branch as P350. b. Insurance premium of P675 charged by the home office was taken up twice by the branch. c. Freight charge on merchandise made by the home office for P1,125 was recorded in the branch books as P1,215. d. Home office credit memo representing a discount on merchandise for P800 was not recorded by the branch. e. The branch failed to take up a P700 debit memo from the home office representing the share of the branch in advertising f. The home office inadvertently recorded a remittance for P3,000 from its Cebu branch as a remittance from its Dagupan branch How much are the unadjusted and adjusted balances of the "Home office account as of year-end? ANSWER: Unadjusted: 226, 485 – Adjusted: 228,700
Transcribed Image Text:7. The year-end balance of the "Investment in Dagupan Branch in the home office books has a balance of P225,770. The following information was determined during the reconciliation: CHAPTER 11 | HO BRANCH | MILLAN a. Office equipment costing the home office P3,500 was recorded by the branch as P350. b. Insurance premium of P675 charged by the home office was taken up twice by the branch. c. Freight charge on merchandise made by the home office for P1,125 was recorded in the branch books as P1,215. d. Home office credit memo representing a discount on merchandise for P800 was not recorded by the branch. e. The branch failed to take up a P700 debit memo from the home office representing the share of the branch in advertising f. The home office inadvertently recorded a remittance for P3,000 from its Cebu branch as a remittance from its Dagupan branch How much are the unadjusted and adjusted balances of the "Home office account as of year-end? ANSWER: Unadjusted: 226, 485 – Adjusted: 228,700
11. Entity A bills its branch for merchandise shipments at 125% of cost. As of cut-off date, Dec. 31, 20x0, the following data were available: From home office From outside purchases (@ billed price) Merchandise, Dec. 1 Additions during Dec. 300,000 120,000 360,000 450,000 420,000 Merchandise, Dec. 31 150,000 CHAPTER 11 | HO BRANCH | MILLAN The branch returned P15,000 merchandise to the home office. acquired at billed price. How much is the amount of the allowance for overvaluation account that was realized in Dec.? ANSWER: 63,000
Transcribed Image Text:11. Entity A bills its branch for merchandise shipments at 125% of cost. As of cut-off date, Dec. 31, 20x0, the following data were available: From home office From outside purchases (@ billed price) Merchandise, Dec. 1 Additions during Dec. 300,000 120,000 360,000 450,000 420,000 Merchandise, Dec. 31 150,000 CHAPTER 11 | HO BRANCH | MILLAN The branch returned P15,000 merchandise to the home office. acquired at billed price. How much is the amount of the allowance for overvaluation account that was realized in Dec.? ANSWER: 63,000
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