AMNESTY PARDON Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a ₱624,000 balance in its “Investment in branch” account while the branch showed a ₱280,800 balance in its “Home office” account. The following information has been gathered: (a) The home office shipped merchandise worth ₱80,000 to the branch during December 20x1 which the latter has received and recorded only in January 20x2. (b) The home office collected ₱40,000 accounts receivable on behalf of the branch. The branch did not yet receive the credit memo sent by the home office. (c) The branch returned damaged merchandise worth ₱120,000 to the home office. The home office did not yet receive the debit memo sent by the branch. (d) A remittance of cash collections amounting to ₱160,000 was not yet recorded by the home office. (e) The home office allocated overhead cost of ₱20,000 to the branch which the latter has recorded twice. (f) Freight charge of ₱48,000 paid by the home office for shipments of merchandise to the branch was recorded by the latter as ₱4,800. How much is the adjusted balance of the “home office” account? (Complete solution please)
AMNESTY PARDON Co. is currently preparing its combined financial statements. At December 31, 20x1, the home office shows a ₱624,000 balance in its “Investment in branch” account while the branch showed a ₱280,800 balance in its “Home office” account. The following information has been gathered:
(a) The home office shipped merchandise worth ₱80,000 to the branch during December 20x1 which the latter has received and recorded only in January 20x2.
(b) The home office collected ₱40,000
(c) The branch returned damaged merchandise worth ₱120,000 to the home office. The home office did not yet receive the debit memo sent by the branch.
(d) A remittance of cash collections amounting to ₱160,000 was not yet recorded by the home office.
(e) The home office allocated overhead cost of ₱20,000 to the branch which the latter has recorded twice.
(f) Freight charge of ₱48,000 paid by the home office for shipments of merchandise to the branch was recorded by the latter as ₱4,800.
How much is the adjusted balance of the “home office” account? (Complete solution please)
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