Answered: Compute the balance of the Home Office…

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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4. Use Selected balances from Company’s Branch A and B are as follows: (see image below) All sales, collections, and expenses are handled at the branch. All cash received from sales and collections are sent directly to the Home Office. Expenses are paid by the branch from the imprest fund and immediately reimbursed by the Home Office and credited to the Home Office account. All expenses paid by the branch are recorded in the books of the branch. Compute the balance of the Home Office account on January 1, 2021 in the books of a. Branch A and b. Branch B

Branch A
P21,000
Branch B
P19,000
1,500
Inventory, Jan. 1, 2021.
Imprest Branch Fund...
Inventory, Dec. 31, 2021.
A/Receivable, Jan. 1, 2021
Merchandise from Home Office.
2,000
19,000
12,000
55,000
61,000
43,500
47,000
A/Receivable, Dec. 31, 2021
70,000
53,500
Cash Collections....
Sales...
85,000
100,000
70,000
80,000
14,300
Cash Expenses...
21,000

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