A reconciliation of the Investment in Tarlac Branch account of Manila Company and the Home Office account carried in the books of the branch shows the following discrepancies at December 31, 2021: > A credit for merchandise allowance for P3,000 was taken by the branch as P3,600. > A charge by the branch of P5,500 for an advance taken by the president when he visited the branch has not yet been recorded by the home office. 3. The branch has not taken up P9,000 covered by a debit memo from the home office as share in advertising expenses. The Investment in Tarlac Branch account in the home office books had a de bit balance of P430,000 at December 31, 2021. The reciprocal accounts were in agreement at the beginning of the year. What is the unadjusted balance of the Home Office account in the books of the branch on December 31, 2021?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Tarlac Branch

A. 414,900
B. 419,906
C. 429,500
D. 404,900

A reconciliation of the Investment in Tarlac Branch account of Manila Company and the Home Office account
carried in the books of the branch shows the following discrepancies at December 31, 2021:
> A credit for merchandise allowance for P3,000 was taken by the branch as P3,600.
> A charge by the branch of P5,500 for an advance taken by the president when he visited the branch has
not yet been recorded by the home office. 3. The branch has not taken up P9,000 covered by a debit
memo from the home office as share in advertising expenses.
The Investment in Tarlac Branch account in the home office books had a de bit balance of P430,000 at
December 31, 2021. The reciprocal accounts were in agreement at the beginning of the year. What is the
unadjusted balance of the Home Office account in the books of the branch on December 31, 2021?
Transcribed Image Text:A reconciliation of the Investment in Tarlac Branch account of Manila Company and the Home Office account carried in the books of the branch shows the following discrepancies at December 31, 2021: > A credit for merchandise allowance for P3,000 was taken by the branch as P3,600. > A charge by the branch of P5,500 for an advance taken by the president when he visited the branch has not yet been recorded by the home office. 3. The branch has not taken up P9,000 covered by a debit memo from the home office as share in advertising expenses. The Investment in Tarlac Branch account in the home office books had a de bit balance of P430,000 at December 31, 2021. The reciprocal accounts were in agreement at the beginning of the year. What is the unadjusted balance of the Home Office account in the books of the branch on December 31, 2021?
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education