1. ABC Company operates a branch. At the end of the year, the Branch account in the books of the home office shows a balance of P150,000. The following information is ascertained: (see image below). All other transactions are presumed to have been properly recorded. Determine the adjusted balance of the Home office account on the books of the branch as of December 31? a. The home office has billed the branch the amount of P37,500 for the merchandise, whichwas in transit on December 31.b. A home office accounts receivable for P10,500 was collected by the branch. Saidcollection was not reported to the home office by the branch.c. Supplies of P4,500 was returned by the branch to the home office but the home office hasnot yet reflected in its records the receipt of the supplies.d. The branch made profit of P10,100o for the month of December but the home officeerroneously recorded it as P11,180.e. The branch has not received the cash in the amount of P25,000 sent by home office onDecember 31. This was charged to General Expense account.

ABC Company has a branch the balance of which in the home office books show a balance of P1,50,000.…

Answered: Determine the adjusted balance of the…

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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1. ABC Company operates a branch. At the end of the year, the Branch account in the books of the home office shows a balance of P150,000. The following information is ascertained: (see image below). All other transactions are presumed to have been properly recorded. Determine the adjusted balance of the Home office account on the books of the branch as of December 31?

a. The home office has billed the branch the amount of P37,500 for the merchandise, which
was in transit on December 31.
b. A home office accounts receivable for P10,500 was collected by the branch. Said
collection was not reported to the home office by the branch.
c. Supplies of P4,500 was returned by the branch to the home office but the home office has
not yet reflected in its records the receipt of the supplies.
d. The branch made profit of P10,100o for the month of December but the home office
erroneously recorded it as P11,180.
e. The branch has not received the cash in the amount of P25,000 sent by home office on
December 31. This was charged to General Expense account.

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