Answered: Determine the branch current account in…

Name: Main Corporation has operated a branch in Cavite for one year. Shipmen
Uploaded: 2024-03-04T10:43:15.000Z
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Description: Main Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The branch reported an inventory on Decem

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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Main Corporation has operated a branch in Cavite for one year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable, makes its own collections, and pays its own expenses. The branch reported an inventory on December 31, 2021: Outsiders, P3,391; Home office, P7,625 The transactions for the year are given effect to in the trial balance below: (see image)

QUESTION:

Determine the branch current account in the Home Office books on January 1, 2022.

Debit
P 5,040
Accounts
Credit
Cash.
P 21,000
Home Office Current
Purchases from outsiders
Shipments from Home Office
Accounts receivable .
Expenses ..
Interest expense.
Gain on sale of equipment.
Sales .....
25,000
56,216
15,360
7,500
684
8,800
80,000
P109.800
P109.800

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