ABOMINABLE VERY BAD Co. has several branches. On December 31, 20x1, the “Investment in Branch One” maintained by the home office shows a balance of ₱400,000 while the “Home office” account maintained by Branch One shows a balance of ₱568,000. The following information was determined: (a) Branch Two acquired equipment for ₱120,000 to be maintained in the books of the home office. This was recorded by the home office as a transaction with Branch One. (b) Branch One acquired equipment for ₱160,000 to be maintained in its books. This was not recorded by the home office. (c) Branch Four remitted cash collections of ₱40,000 to the home office which the latter failed to record. (d) The home office erroneously charged Branch One for a debit memo of ₱48,000 received from Branch Five. (e) Branch One reversed a previous debit memo from Branch Six amounting to ₱24,000. The home office decided that this charge is appropriately Branch Seven’s cost. How much is adjusted balance of the “Home Office” account? (Complete solution please)
ABOMINABLE VERY BAD Co. has several branches. On December 31, 20x1, the “Investment in Branch One” maintained by the home office shows a balance of ₱400,000 while the “Home office” account maintained by Branch One shows a balance of ₱568,000. The following information was determined:
(a) Branch Two acquired equipment for ₱120,000 to be maintained in the books of the home office. This was recorded by the home office as a transaction with Branch One.
(b) Branch One acquired equipment for ₱160,000 to be maintained in its books. This was not recorded by the home office.
(c) Branch Four remitted cash collections of ₱40,000 to the home office which the latter failed to record.
(d) The home office erroneously charged Branch One for a debit memo of ₱48,000 received from Branch Five.
(e) Branch One reversed a previous debit memo from Branch Six amounting to ₱24,000. The home office decided that this charge is appropriately Branch Seven’s cost.
How much is adjusted balance of the “Home Office” account? (Complete solution please)
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