Home Office Branch P 256,000 P 78,500 20,000 Sales Purchases from outsiders Shipments to branch: Cost to home office 210,000 30,000 Billing price to branch Expenses Inventories, January 1, 2008: 40,000 12,500 60,000 Home office acquired from outsiders, at cost 80,000 Branch: 7,500 Acquired from outsiders, at cost Acquired from home office, at billed price (which averaged 22 ½ above cost) Inventories, December 31, 2008: Home Office, acquired from outsiders, at cost Branch: 24,500 55,000 Acquired from outsiders, at cost Acquired from home office, at 2008 billed price 5,500 26,000
Home Office Branch P 256,000 P 78,500 20,000 Sales Purchases from outsiders Shipments to branch: Cost to home office 210,000 30,000 Billing price to branch Expenses Inventories, January 1, 2008: 40,000 12,500 60,000 Home office acquired from outsiders, at cost 80,000 Branch: 7,500 Acquired from outsiders, at cost Acquired from home office, at billed price (which averaged 22 ½ above cost) Inventories, December 31, 2008: Home Office, acquired from outsiders, at cost Branch: 24,500 55,000 Acquired from outsiders, at cost Acquired from home office, at 2008 billed price 5,500 26,000
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter2: Asset And Liability Valuation And Income Recognition
Section: Chapter Questions
Problem 5QE
Related questions
Question
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.
![Home Office
Branch
Sales
P 256,000
P 78,500
Purchases from outsiders
210,000
20,000
Shipments to branch:
Cost to home office
Billing price to branch
Expenses
Inventories, January 1, 2008:
Home office acquired from outsiders, at cost
30,000
40,000
12,500
60,000
80,000
Branch:
Acquired from outsiders, at cost
Acquired from home office, at billed price
(which averaged 22 % above cost)
Inventories, December 31, 2008:
Home Office, acquired from outsiders, at cost
7,500
24,500
55,000
Branch:
Acquired from outsiders, at cost
Acquired from home office, at 2008 billed
price
5,500
26,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3fbffda4-a292-49c2-9e87-e8e010b82ca6%2Fde33abdd-9b29-45cf-8d00-b94ee303b7d9%2Fg9rdj0g_processed.png&w=3840&q=75)
Transcribed Image Text:Home Office
Branch
Sales
P 256,000
P 78,500
Purchases from outsiders
210,000
20,000
Shipments to branch:
Cost to home office
Billing price to branch
Expenses
Inventories, January 1, 2008:
Home office acquired from outsiders, at cost
30,000
40,000
12,500
60,000
80,000
Branch:
Acquired from outsiders, at cost
Acquired from home office, at billed price
(which averaged 22 % above cost)
Inventories, December 31, 2008:
Home Office, acquired from outsiders, at cost
7,500
24,500
55,000
Branch:
Acquired from outsiders, at cost
Acquired from home office, at 2008 billed
price
5,500
26,000
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