Branch: - Inventory costing P51,600 was sent to the branch by the home office on December 31, 20 cost, but the branch recorded the transaction at P40,800 > A branch customer erroneously remitted P3,600 to the home office. The home office rece collection on December 23, 2021. Meanwhile, back at the branch, no entry has been ma > A P12,000 branch remittance to the home office initiated on December 27, 2021, was rec office books on January 3, 2022 - A home office inventory shipment to the branch on December 28, 2021, was recorded by 4, 2022; the billing of P24,000 at cost The home office incurred P14,400 of advertising expenses and allocated P6,000 of this an December 15, 2021. The branch has not recorded this transaction. On December 31, 2021, the Home Office Account on HIJ Branch has a balance of P52,800. Co

Branch: - Inventory costing P51,600 was sent to the branch by the home office on December 31, 20 cost, but the branch recorded the transaction at P40,800 > A branch customer erroneously remitted P3,600 to the home office. The home office rece collection on December 23, 2021. Meanwhile, back at the branch, no entry has been ma > A P12,000 branch remittance to the home office initiated on December 27, 2021, was rec office books on January 3, 2022 - A home office inventory shipment to the branch on December 28, 2021, was recorded by 4, 2022; the billing of P24,000 at cost The home office incurred P14,400 of advertising expenses and allocated P6,000 of this an December 15, 2021. The branch has not recorded this transaction. On December 31, 2021, the Home Office Account on HIJ Branch has a balance of P52,800. Co

Name: The following were found in our examination of the inter-plant accoun
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Description: The following were found in our examination of the inter-plant accounts between the Home Office and the HIJBranch:> Inventory costing P51,600 was sent to the branch by the home office on December 31, 2021. The billing was atcost, but the branch reco

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

The following were found in our examination of the inter-plant accounts between the Home Office and the HIJ
Branch:
> Inventory costing P51,600 was sent to the branch by the home office on December 31, 2021. The billing was at
cost, but the branch recorded the transaction at P40,800
A branch customer erroneously remitted P3,600 to the home office. The home office recorded this cash
collection on December 23, 2021. Meanwhile, back at the branch, no entry has been made yet.
> A P12,000 branch remittance to the home office initiated on December 27, 2021, was recorded on the home
office books on January 3, 2022
> A home office inventory shipment to the branch on December 28, 2021, was recorded by the branch on January
4, 2022; the billing of P24,000 at cost
The home office incurred P14,400 of advertising expenses and allocated P6,000 of this amount to the branch on
December 15, 2021. The branch has not recorded this transaction.
On December 31, 2021, the Home Office Account on HIJ Branch has a balance of P52,800. Compute the net
adjustment to Home office account.

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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. Using the same information , determine combined net income (loss) of the home office and the branch for the year 2021.
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PROBLEM U: The following information came from the books and records of the Home Office and its branch. The balances as of December 31, 2020 are as follows: Branch 170,000 Home office 300,000 Sales Shipments to branch Shipments from home office Purchases Operating expenses Inventory, December 31, 2019 Allowance for overvaluation of branch inventory 48,000 60,000 36,000 42,000 32,000 120,000 80,000 50,000 17,200 There were no shipment in transit between the Home office and the branch. Both shipment accounts are properly recorded. The closing inventory of the branch at billed price is P16,800, P6,000 of which were acquired from outside suppliers. The closing inventory of the home office is P18,000. The home office applies a uniform percentage markup on the shipments of inventory to the branch from year to year. 25. How much is the overvaluation in branch's ending inventory as of December 31, 2020? A. С. 15,040 17,200 В. 2,160 D. 26. How much is the net income (loss) of the branch for…
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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.