ABC Company's has two merchandise outlets, its main store in Baguio City and its San Fernando City branch. For control purposes, all purchases are made by the main store and shipped to the San Fernando 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 purchases merchandise costing P40,000 and shipped 40O% of it to the San Fernando City branch. At December 31, 2021, the following journal entry to prepare the books for the GRAPED KAM next accounting period was prepared: Sales 32,000 4,840 Inventory Inventory Shipments from Main Store 3,960 17,600 10,480 4,800 Еxpenses Main Store 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 City branch. For control purposes, all purchases are made by the main store and shipped to the San Fernando 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 purchases merchandise costing P40,000 and shipped 40O% of it to the San Fernando City branch. At December 31, 2021, the following journal entry to prepare the books for the GRAPED KAM next accounting period was prepared: Sales 32,000 4,840 Inventory Inventory Shipments from Main Store 3,960 17,600 10,480 4,800 Еxpenses Main Store 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

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ABC Company's has two merchandise outlets, its main store in Baguio City and its San Fernando City branch. For control purposes, all purchases are made by the main store and shipped to the San Fernando 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 purchases merchandise costing P40,000 and shipped 40% of it to the San Fernando City branch. At December 31, 2021, the follawing journal entry to prepare the books for the next accounting periad was prepared: Sales 32,000 Inventory 4,840 Inventory 3,960 Shipments from Main Store 17,600 Expenses 10,480 Main Store 4,800 Compute for the amount of overvaluation that was realized from the branch sales.
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HO has three all-night operating grocery stores located in Manila. Each store has a branch manager with authority to accept inventory items at home cost plus mark-up or to purchase from outside wholesalers at his discretion.Inventories at December 31, 2019 were as follows: Home officeP277,250 costBSA Branch66,000 transfer priceBSAIS Branch74,250 transfer priceBSMA Branch115,500 transfer price During 2019, how much is the total amount credited to the unrealized mark-up account in the books of the home office?A. 234,500B. 230,250C. 237,500D. 257,750
ABC Company established a branch in Pasig on March 1, 2022. Shipments of merchandise at billed prices during March were as follows: March 5, 2022 (at P165,000 10% mark-up) March 10, 2022 (at 240,000 20% mark-up) March 20, 2022 (at 175,000 25% mark-up) On March 21, 2022, the branch returned defective merchandise which was billed at P15,000 (received on March 20, 2022). The monthly report submitted by the branch to the home office for the month of March showed that unsold inventory was P196,000. The branch reported net income for the month of March of P49,500. 1. How much is the cost of goods sold to be reported by the branch for March? 2. How much is the true cost of goods sold of the branch in March? 3. How much is the true net income of the branch for March? 4. How much is the allowance for overvaluation to be reported by the home office as of March 31, 2022?
Habiba Company has a single branch in Southwest. On March 1, 2020, the home ofﬁce accounting records included an Allowance for Overvaluation of Inventories: Southwest Branch ledger account with a credit balance of $32,000. During March, the following transactions occurred: On March 4, the home office shipped merchandise costing $66,000 to the Southwest Branch and billed it at a price representing a 40% markup on the billed price. On March 8, the branch sold 70% of the merchandise received from the home office on march 4 for $90,000 cash. On March 15, the branch sold 20% of the merchandise received from the home office on march 4 to Hope company for $30,000 on credit. On March 22, the home office informed the branch that it had collected 50% of the amount owed by Hope company. On March 28, the branch paid operating expenses of $10,000 cash. On March 29, Hope company paid the remaining amount due to Southwest branch, On March 30, the home office allocated operating expenses of $4,000…
The home office ships merchandise to the branch at 25 percent above cost. At whatamount should the Home Office account be credited if merchandise costing P120,000will be shipped? On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During theyear, Kit Inc. transfers cash and merchandise to the branch worth P15,000 andP45,000 respectively. Freight was paid by the home office worth P1,500 included inthe cost of merchandise. The home office also incurred P5,700 expenses of which 30percent was allocated to the branch. On December 31, 2020, the branch incurred aloss of P4,000. What is the balance of the branch account as per home office books? *Please answer in good Accounting form. Thank you!
On May 1, 2021, Company A shipped merchandise costing $16,000 to Company B on consignment. Company A paid $1,400 in shipping costs to deliver the inventory. On September 30, 2021, Company B advised Company Athat all of the inventory had been sold for a total of $54,000. On October 15, 2021, Company A received payment from Company B for the proceeds, less a 12% commission. Required: Prepare all the journal entries for Company A to account for the transaction from April 2 through October 15.
A Corporation maintains a merchandise outlet in Ashton City aside from the main store. All purchases are made by the main store and some are shipped to the branch at cost plus 10%. On January 1, 2021, the main store and branch store inventories were 17,000 and 4,950, respectively. In 2021, the main store purchased merchandise costing 50,000 and shipped 40% of it to the branch. On December 31, 2021, the branch made the following closing entry: Sales 40,000 Inventory 6,050 Shipment from main store 22,000 Expenses 13,100 Inventory 4,950 Main store 6,000 Questions: A. What was the actual branch income for 2021 on a cost basis assuming generally accepted accounting principles? B. If the main store inventory at December 31, 2021, is 14,000, the combined main store and branch store inventory that should appear in Ceres Company’s balance sheet is? C. If the main store inventory at December 31, 2021, is 14,000, the combined cost of goods sold that should appear in Ceres’ income statement is?
The Company has a single branch in Southwest. On March 1, 2020, the home ofﬁce accounting records included an Allowance for Overvaluation of Inventories: Southwest Branch ledger account with a credit balance of $32,000. During March, the following transactions occurred: On March 4, the home office shipped merchandise costing $66,000 to the Southwest Branch and billed it at a price representing a 40% markup on the billed price.On March 8, the branch sold 70% of the merchandise received from the home office on march 4 for $90,000 cash.On March 15, the branch sold 20% of the merchandise received from the home office on march 4 to Hope company for $30,000 on credit.On March 22, the home office informed the branch that it had collected 50% of the amount owed by Hope company.On March 28, the branch paid operating expenses of $10,000 cash.On March 29, Hope company paid the remaining amount due to Southwest branch,On March 30, the home office allocated operating expenses of $4,000 to the…
Lavender Company operates retail hobby shops from the main store and a branch store. Merchandise is shipped from the main store and to the branch and billed to thebranch at an arbitrary 10% markup. Trial balances of the main store and branch as of December 31, 2020 are as follows: *see picture Inventories on hand at December 31, 2020 at the main store and branch are P3,000 and P1,800, respectively. The December 31, 2019 branch inventory includes merchandise purchased from outsiders of P300, and the December 31, 2020 branch inventory includes P150 of merchandise purchased from outsiders. The combined cost of goods sold amounted to:
Jitra Bhd (JB) sells health care product. Following is the information for its inventory for the month of December 2021. Date Transactions I Dec Inventory on hand consists of 500 units at RM14 each. 8 Dec Sold merchandise for RM9,000 (300 units @ RM30), f.o.b. destination, to a customer in Ampang, Kuala Lumpur. The customer was scheduled d receive the merchandise on 9 December 2021. Purchased merchandise costing RM10,500 (700 units @ RMI5) from a vendor, f.o.b. shipping point, 2/10, n/30. The merchandise was received on 14 December 2021. The transportation cost was RM140. 10 Dec 15 Dec Purchased merchandise costing RM6,200 (400 units @ RM15.50) from a vendor, f.o.b. destination, 2/10, n/30. The merchandise was received on 19 December 2021. The transportation cost was RM80. 20 Dec Sold merchandise for RM15,000 (500 units @ RM30), f.o.b. shipping point, to a customer in Sungai Petani, Kedah. The customer was scheduled to receive the merchandise on 22 December 2021. 27 Dec Purchased…
The Armami Corp. established a branch store in Ortigas on June 30, 2020. The branch is to receive substantially all merchandise for sale from the home office. During the remainder of 2020, shipments to the branch amounted to 240,000 that included a 20% mark-up on cost. The branch purchased 180,000 additional merchandise for cash and reported unsold merchandise for 145,000. The branch made sales of 420,000, paid expenses of 105,000 and remitted to the home office all sales proceeds. The allowance for overvaluation of branch inventory account on the home office books showed a balance of 22,500 after adjustment. Required: I. The branch ending inventory that represented purchase from outsiders II. The branch net income as far as the home office is concerned