ABC Company's has two merchandise outlets, its main store in Baguio City and its San Fernando Citybranch. For control purposes, all purchases are made by the main store and shipped to the San FernandoCity branch at cost plus 10%. On January 1, 2021, the inventories of the main store in Baguio City and theSan Fernando City branch are P13, 600 and P3, 960, respectively. During 2021, the main store purchasesmerchandise costing P40, 000 and shipped 40% of it to the San Fernando City branch. At December 31,2021, the following journal entry to prepare the books for the next accounting period was prepared:Sales32,000InventoryInventoryInventory Shipments from Main StoreExpenses4,8403,96017,60010,480Main Store4,800Compute for the amount of overvaluation that was realized from the branch sales.

Profit on Inventory in january 1, 2021 =Cost of inventory on January 1, 2021 × Profit percentage=P…

ABC Company's has two merchandise outlets, its main store in Baguio City and its San Fernando Cit branch. For control purposes, all purchases are made by the main store and shipped to the San Fernande City branch at cost plus 10%. On January 1, 2021, the inventories of the main store in Baguio City and the San Fernando City branch are P13, 600 and P3, 960, respectively. During 2021, the main store purchase merchandise costing P40, 000 and shipped 40% of it to the San Fernando City branch. At December 31 2021, the following journal entry to prepare the books for the next accounting period was prepared: Sales Inventory Inventory Inventory Shipments from Main Store Expenses Main Store 32,000 4,840 3,960 17,600 10,480 4,800 Compute for the amount of overvaluation that was realized from the branch sales.

ABC Company's has two merchandise outlets, its main store in Baguio City and its San Fernando Cit branch. For control purposes, all purchases are made by the main store and shipped to the San Fernande City branch at cost plus 10%. On January 1, 2021, the inventories of the main store in Baguio City and the San Fernando City branch are P13, 600 and P3, 960, respectively. During 2021, the main store purchase merchandise costing P40, 000 and shipped 40% of it to the San Fernando City branch. At December 31 2021, the following journal entry to prepare the books for the next accounting period was prepared: Sales Inventory Inventory Inventory Shipments from Main Store Expenses Main Store 32,000 4,840 3,960 17,600 10,480 4,800 Compute for the amount of overvaluation that was realized from the branch sales.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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.
Provisions Grocery Store purchased merchandise on account from Federal Grocers for $500.00 on April 6, terms 2/10, n/30. Federal Grocers prepaid freight charges of $25.00 and added them to the invoice. Assuming Provisions Grocery Store pays the amount due within the discount period, what is the amount of the payment?
Cute Company operates a branch in Baguio City. Selected balances taken from the books of Home Office and Branch as of December 31, 2021 are as follows (see image below). The branch ending inventory included items costing P8,700 that were acquired from outside suppliers.1. How much is the Inventory on January 1 of the Branch that came from the Home Office? 2. How much is the Cost of Sales of the Branch at cost? 3. How much is the Consolidated Net Income? 4. How much is the Consolidated Inventory at December 31, 2021?
On December 3, 2009, the home office of Jimin Company recorded a shipment of merchandise to its Makati Branch as follows: Makati Branch P30,000 Shipments to Branch P25,000 Unrealized Profit in Branch inventory 4,000 Cash (for freight charge) 1,000 The Makati branch sells 40% of the merchandise to outside entities during the rest of December 2009. The books of the home office and Jimin are closed on December 31 of each year.On January 5, 2010, the Makati branch transfer half of the original shipment to the Taguig branch, and the Makati branch pays P500 as the shipment. Required:1. Provide the journal entries on the books of Makati Branch in respect to January 5, 2010 transfer:2. Provide the journal entries on the books of Taguig Branch in respect to January 5, 2010 transfer:3. Provide the journal entries…
ABC Company operates a branch. Operating data for the home office and the branch for 2021 are as follows: (see image below) Determine the Branch December 31, 2021 Inventory at cost.
A Company’s branch in San Fernando began operations on January 1, 2021. During the first year of operations, the home office shipped merchandise to the San Fernando branch that cost P250,000. Freight-in of P1,500 on the shipments from the home office was paid by the branch. The home office should make an adjusting entry for freight-in as follows:* A. A year-end adjusting entry debiting the branch account for ₱1,500. B. A year-end adjusting entry debiting the home office account for ₱1,500. C. A year-end adjusting entry crediting the branch account for ₱1,500. D. No year-end adjusting entry for the freight charge.